12.1.3 Error "The system could not Determine the Place of Supply Type for Tax CY OFFSET"

I created a new Offset Tax Rate on a recently upgraded 12.1.3 instance. When we try to apply this new Tax Rate on a Payables Invoice, we get the aforementioned error.

I have found document The System Could Not Determine The Place Of Supply Type For Tax (Doc ID 1910574.1) which states that "

"Default value is not populated for place of supply rule.

When rule does not evaluate to true, the system checks for Default place of supply. Hence this needs to be populated."

My question is, do we have to define it for Offset Taxes too?

Thanks in advance,