Expenses and costs · 3 min read

Categorising expenses

How to categorise expenses and costs in Taxorio, an overview of the available categories, and how the right classification affects your tax records, deductions and how clear your reports are.

Why categorise expenses

Categorising expenses correctly has two key benefits. First — a category carries a default tax-deduction percentage, so for expenses also used privately you don't have to decide the split every single time. Second — the category flows into the income and expense ledger and into the accountant export, so your accountant or tax advisor gets the data neatly sorted.

Available expense categories

Taxorio offers these standard categories, matching the common expenses of a self-employed person (OSVČ):

  • Software and licences — licences, SaaS apps, cloud services, antivirus, subscriptions.
  • Hardware and equipment — computers, monitors, printers, phones, peripherals.
  • Office supplies — office furniture, consumables, toner, paper.
  • Rent — rent for an office, coworking space or business premises.
  • Phone and internet — mobile plan, fixed-line internet, data packages.
  • Travel — tickets, taxis, flights, accommodation on a business trip.
  • Fuel — petrol, diesel, electricity for a vehicle used for business.
  • Vehicle (repairs, insurance) — servicing, insurance, motorway toll sticker, vehicle leasing.
  • Services — subcontractors, freelancers, consulting services in general.
  • Legal services — lawyer, notary, legal advice.
  • Accounting services — tax advisor, bookkeeper, payroll.
  • Insurance — liability insurance, insurance on property used for business.
  • Marketing and advertising — online advertising (Google Ads, Meta), printing promotional materials, website creation.
  • Business entertainment and gifts — hospitality, business lunches, gifts to business partners. Not tax-deductible and carries no right to deduct VAT, except for a gift up to CZK 500 (see below).
  • Self-employed levies (social, health, income tax) — your own insurance advance payments (social and health) and income tax. Not a tax expense (§ 25(1)(g) and (s) of the Income Tax Act); Taxorio leaves them out of tax expenses.
  • Materials — materials and supplies used directly to make a product or deliver a service.
  • Tools and equipment — work tools, devices, measuring instruments.
  • Education and training — courses, conferences, professional literature, certification.
  • Other — expenses that don't fit any of the categories above.

What the category is used for in the app

The category is shown for every expense in the list and in its detail, and it carries over into the income and expense ledger and into the accountant export (Pohoda, Money). In the Expenses section you can search by it — the search box also looks through the category. There isn't a dedicated filter or chart by category yet — the AI assistant can list a category's expenses for the year for you, and you can reliably total up a year from the exported ledger.

The category also carries a default tax-deduction percentage: in Settings → Expense deductions you set what share of a category's expenses enters your tax records (fuel at 80%, say), and Taxorio then pre-fills it on every new expense in that category.

Tax-deductible vs. non-deductible expenses

Not every expense can be claimed as a tax expense under § 24 of the Income Tax Act. Taxorio doesn't make a legal judgement on categories — with two exceptions: it excludes Business entertainment and gifts (see below) and Self-employed levies from income tax on its own. For everything else, the call is always yours or your advisor's. General rules:

  • Tax-deductible — expenses directly aimed at earning, securing and maintaining income from your business (computing equipment, software, operating costs).
  • Tax-deductible only in part — a car also used privately (reduced by the ratio of business use). Business entertainment, on the other hand, is entirely non-deductible (§ 25(1)(t) ZDP).
  • Not tax-deductible — fines, penalties, private consumption.
💡 Taxorio excludes business entertainment from income tax for you. File business lunches, hospitality and gifts to partners under the Business entertainment and gifts category. A document like that stays in your records, but it doesn't enter your tax expenses — not the tax estimate on the Overview, and not the income tax return either (§ 25(1)(t) ZDP).
⚠️ Two things you need to watch for yourself with business entertainment. The row still stays in the income and expense ledger — the ledger is a record of every document, not just the tax-deductible ones, so the document is listed with its full amount. Total your tax-deductible expenses from the „Daňový výdaj (Kč)“ (tax-deductible expense) column — business entertainment has zero there, so don't subtract anything more. And there's no right to a VAT deduction (§ 72(6) ZDPH, from 1 January 2027 § 72(4)): enter VAT 0 on the document. The app reminds you below the category picker and won't save a document in this category with VAT stated. The exception is a gift costing up to CZK 500 excluding VAT, even without your logo (§ 13(7)(c) ZDPH): a VAT payer may deduct VAT on it. Taxorio does not claim that deduction — add it yourself in EPO: for a domestic document on line 40 or 41 of the VAT return and in the VAT control statement, for a document under the reverse charge on line 43 or 44. If an accountant files the return for you, tell them — the export for accounting (POHODA, Money) carries the document without the deduction. On a document under the reverse charge (a service from abroad, for example) the VAT return carries the self-assessed tax, but Taxorio claims no deduction for business entertainment on lines 43 and 44.
💡 Tip: if you're not sure whether a particular expense is tax-deductible, consult a tax advisor. Miscategorising it can lead to an additional tax assessment on audit.