How VAT works in Nordflow

Nordflow supports two VAT models depending on the country of the customer. Understanding which model applies helps you configure accounts correctly and diagnose unexpected VAT results.

Per-account VAT (Denmark, Norway, Finland)

VAT is configured at the chart-of-accounts level. Each debit account carries a default VAT code. When a document is processed, Nordflow reads the account assigned to the line and applies that account’s VAT code automatically. The captured VAT amount on the invoice is then compared against the calculated figure — if they differ, the discrepancy is visible on the document.

This model works well when each account is consistently tied to a single VAT treatment.

Per-line VAT (Sweden)

VAT is captured per accounting line directly from the invoice. Different lines on the same invoice can carry different VAT codes and percentages. Sweden also has special deductibility rules — for example, leasing invoices typically carry 50 % deductible VAT. Nordflow passes the VAT line through to Business Central with the appropriate code; Business Central’s own VAT setup handles the deduction calculation.

Where VAT is calculated

Nordflow captures and routes VAT information — it does not independently calculate tax or enforce VAT correctness. The actual posting, deductibility, and tax reporting all happen in the ERP. If a VAT result looks wrong, the root cause is almost always in the ERP’s account or VAT-code setup rather than in Nordflow itself.