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 (see below).
  • 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 a single exception: it excludes Business entertainment and gifts from income tax on its own (see below). 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 export is a record of every document, not just the tax-deductible ones, so the document is listed with its full amount and with the "Reduced base" column filled in. When you total expenses from the ledger by hand or hand it to your accountant, subtract business entertainment yourself. And there's no right to a VAT deduction (§ 72(4) ZDPH), yet Taxorio doesn't police this: enter VAT 0 on the document, otherwise the deduction ends up in your VAT return. The app only warns you below the category picker with the text "Business entertainment and gifts are not a tax expense and carry no right to a VAT deduction — enter VAT as 0," but it doesn't block saving.
💡 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.