How does the system handle VAT on uploaded invoices?

When you upload a utility invoice PDF, the system extracts VAT (value-added tax) information automatically. Here is how VAT flows through the platform:

What gets extracted from each invoice

• Total amount (including VAT) — the full invoice amount you pay
• Subtotal amount (excluding VAT) — the net amount before tax
• VAT amount — the tax portion
• VAT rate — the percentage (e.g., 25% for Norway)

These are stored as separate fields on every invoice, so the system always knows both the gross and net amounts.

How VAT affects cost allocation

When you allocate invoice costs to tenants, you can choose whether to base the allocation on the amount including or excluding VAT:

• Including VAT: Tenants pay their share of the full invoiced amount (total_amount). This is the simpler option when tenants handle their own VAT accounting.
• Excluding VAT: Tenants pay their share of the net amount (subtotal_amount). The allocation basis shows "[excl. VAT]" to make this clear.

What if the invoice does not show VAT?

If the OCR extraction cannot find explicit VAT information, the system uses a default rate of 25% (standard Norwegian VAT). You can review and correct extracted values by opening the invoice detail page.

Energy breakdown normalization

When the system extracts itemized energy costs (e.g., electricity grid fee, energy cost, fixed fee), it automatically detects whether these line items are including or excluding VAT, and normalizes them to exclude VAT for consistent allocation.

Important — there is no global VAT setting

VAT is tracked per invoice, not as an account-wide setting. Each invoice has its own VAT rate and amounts based on what was extracted from the document. This is intentional because different utilities and countries have different VAT rates.

Always verify VAT figures against the original invoice

OCR extraction of VAT can fail or produce incorrect values, especially for scanned PDFs or non-standard invoice layouts. After uploading, open the invoice detail page and confirm that the extracted VAT amount and rate match what is printed on the original document before using the data for billing or reporting.

Where to check: Invoices → click any invoice to see the extracted total, subtotal, VAT amount, and VAT rate.