Where to find tax settings
Tax settings live in the Business & taxes group and are split across two tabs — it's worth knowing what lives where:
- Settings → Company details — VAT status, tax ID (DIČ), VAT tax period, flat-rate expenses, your tax office and your insurance details.
- Settings → Tax regime — a single choice: whether you're on the standard regime or on flat-rate tax (and in which band).
This setting is key — it drives the cards on the Overview, the calculations in Taxes & insurance, the exports Taxorio generates, and the tax calendar.
VAT status
Taxorio supports three VAT statuses. The choice affects the exports it generates, the tax calendar, and how VAT is shown on invoices:
Non-VAT payer
You're not registered for VAT. You issue invoices without VAT, and you don't file a VAT return or a VAT control statement. VAT deadlines don't show up in the tax calendar, and instead of a "VAT (DPH) due" card, the Overview shows a VAT turnover card that watches how close you are to mandatory registration.
Identified person (IO, § 6g–§ 6l ZDPH)
You're not a VAT payer in the full sense, but you have a registration duty because of cross-border transactions — most often receiving a service from abroad (Google Ads, Adobe, AWS…) or acquiring goods from the EU above CZK 326,000 a year.
- You remit VAT on received supplies under the reverse charge regime — EU services (§ 24 ZDPH), services from third countries such as the US/UK/Switzerland (§ 108 para. 3(a) ZDPH), EU goods (§ 16 ZDPH), and domestic reverse charge under § 92a ZDPH.
- You are not entitled to VAT deduction on input.
- You file DP3 (only for periods with such a supply), but you don't file KH1 — the VAT control statement is for VAT payers only.
- When setting up IO status, fill in the Identified person registration date — the date from which you're registered with the tax office.
VAT payer
You're registered for VAT (§ 94 et seq. ZDPH). Your invoices carry VAT, you track output and input VAT, you file both DP3 and KH1, and you're entitled to a deduction.
Tax ID (DIČ)
A tax ID (DIČ) in the format CZ + your company ID (IČO) (e.g. CZ12345678) is required for both a VAT payer and an identified person. It's printed on invoices and stated in VAT exports.
VAT tax period
This choice is only offered to a VAT payer. An identified person doesn't have it — under § 99 ZDPH their tax period is always a calendar month (the quarterly option in § 99a is only for VAT payers), so Taxorio sets a monthly period automatically. A non-VAT payer doesn't deal with a tax period at all.
The choice affects both the deadlines in the tax calendar and how VAT exports are broken down:
- Monthly — the return is filed by the 25th of the following month.
- Quarterly — the return is filed by 25 April, 25 July, 25 October and 25 January.
Under § 99a ZDPH you can only choose a quarterly period if your turnover for the immediately preceding calendar year did not exceed CZK 15,000,000, you are not an unreliable payer, and you notify the tax authority of the change by the end of January of that year. On top of that, the choice is not available for the year you became a VAT payer, or for the year immediately following it — so a monthly period is mandatory for your first two years as a payer.
Tax office
On the same tab, choose your relevant tax office and branch office. The field is optional, but without it the XML for EPO will be missing the office code and the form will ask you for it when filing. Taxorio can suggest an office based on your address's postal code — just click the auto-select offer.
Flat-rate expenses for income tax
In the Income tax section (also in Company details) there's a Flat-rate expenses switch that decides how your tax base is calculated:
- Actual expenses (switch off — "No (I track actual expenses)") — tax base = income minus the expenses actually recorded in Taxorio.
- Flat-rate expenses (switch on) — tax base = income × (1 − flat-rate percentage). Keep recording your documents anyway; they just don't affect income tax.
Flat-rate percentage and its cap
Pick the rate for your field under § 7 para. 7 ZDP. Each one also has a maximum deductible amount (derived from the CZK 2,000,000 income cap):
- 80% (craft trades, agriculture) — agricultural production, forestry and water management, craft trades (carpenter, plumber, cook…). Up to CZK 1.6 million in expenses a year.
- 60% (free and licensed trades) — other trades (free, licensed, concession-based) — the most common rate for self-employed people in IT, marketing or trade. Up to CZK 1.2 million.
- 40% (independent activity without trade license) — royalties, expert witnesses, interpreters, liberal professions. Up to CZK 800 thousand.
- 30% (rental income) — income from renting out assets held as business property. Up to CZK 600 thousand.
Taxorio works out the current cap for the rate you picked and shows it right under the percentage selector ("Max. expenses at 60% flat rate: CZK 1,200,000 per year").
Tax regime: standard, or flat-rate tax
The Settings → Tax regime tab handles something different from flat-rate expenses — it switches between standard taxation and flat-rate tax (§ 2a ZDP), a single monthly payment that covers both tax and insurance.
- Turning on flat-rate tax also has you pick a band (Band I, II or III) and the year you entered the regime.
- Flat-rate tax cannot be combined with being a VAT payer — Taxorio warns you about this when you try to switch.
- In the flat-rate regime, flat-rate expenses aren't set at all: the switch in Company details disappears and an explanation takes its place. Expenses aren't taken into account for tax purposes at all — though you can keep recording them.
The conditions, bands and how to switch between regimes are covered in a separate flat-rate tax help article.
How a settings change affects calculations
A change takes effect immediately across all calculations and overviews. Historical data (invoices already issued and expenses already recorded) doesn't change — only the way it's aggregated and how the tax base is calculated changes. Exports generated after the change are already calculated under the new settings.