Moq, getting past entity framework BeginTransaction

I am trying to make sense of mocking in unit testing and to integrate the unit testing process to my project. So I have been walking thru several tutorials and refactoring my code to support mocking, anyway, I am unable to pass the tests, because the DB method I am trying to test is using a transaction, but when creating a transaction, I get

The underlying provider failed on Open.

Without transaction everything works just fine.

The code I currently have is:

[TestMethod]
public void Test1()
{
    var mockSet = GetDbMock();
    var mockContext = new Mock<DataContext>();
    mockContext.Setup(m => m.Repository).Returns(mockSet.Object);

    var service = new MyService(mockContext.Object);
    service.SaveRepository(GetRepositoryData().First());
    mockSet.Verify(m => m.Remove(It.IsAny<Repository>()), Times.Once());
    mockSet.Verify(m => m.Add(It.IsAny<Repository>()), Times.Once());
    mockContext.Verify(m => m.SaveChanges(), Times.Once());
}

// gets the DbSet mock with one existing item
private Mock<DbSet<Repository>> GetDbMock()
{
    var data = GetRepositoryData();
    var mockSet = new Mock<DbSet<Repository>>();

    mockSet.As<IQueryable<Repository>>().Setup(m => m.Provider).Returns(data.Provider);
    // skipped for brevity
    return mockSet;
}

Code under test:

private readonly DataContext _context;
public MyService(DataContext ctx)
{
    _context = ctx;
}

public void SaveRepositories(Repository repo)
{
    using (_context)
    {
        // Here the transaction creation fails
        using (var transaction = _context.Database.BeginTransaction())
        {
            DeleteExistingEntries(repo.Id);
            AddRepositories(repo);
            _context.SaveChanges();
            transaction.Commit();
        }
    }
}

Any ideas how to solve this?