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), and EU goods (§ 16 ZDPH). Domestic reverse charge under § 92a doesn't apply to you — it only applies between VAT payers.
- 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) is required for both a VAT payer and an identified person. It's printed on invoices and stated in VAT exports. Copy it exactly from the registration decision: for an individual (self-employed) it is CZ + birth number without the slash (CZ YYMMDDXXXX), for a company CZ + company ID (IČO). The tax office rejects an individual's tax ID in the form of the IČO — Taxorio warns you about it and you can't download a filing with it. For a company (s.r.o., cooperative, association…) a tax ID made of the IČO is correct; Taxorio recognises the legal form from the name or checks it in ARES. If you have your IČO saved there, Company details offer the tax ID from the ARES register in one click.
A non-VAT payer doesn't see the field and usually has no tax ID — the separate income tax registration was abolished in 2024. In the income tax return they identify themselves with their birth number, which you add in MOJE daně (see Income tax).
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.
Right below the period you pick from when it applies: from this year, from next year, from one of the last three years (the change already happened), or for all years. Exactly what you pick is saved, and the sentence below the choice says so — “from a year” gives all years before it the other period. If you switch to monthly from this year in January, you still file the return and the control statement for last year’s fourth quarter quarterly. A switch to quarterly is notified to the tax office by the end of January.
Did your period change earlier (for example quarterly until 2024, monthly from 2025)? Pick the period you file in today and, under From when the period applies, the year from which you file in it.
Did you enter the period by mistake and file differently in all years (for example quarterly, although you have always filed monthly)? Pick the right period and For all years. A change “from this year” would leave last year in the wrong period, and in January you could not file last December. Taxorio knows at most one change of the period — if you switched several times, enter the latest one and check the period for older years yourself.
No longer a VAT payer? You still see the period from the time you were a payer and can correct it — Taxorio prepares your last VAT return and control statement as a payer according to it.
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.
- A VAT payer can't enter the flat-rate tax regime — Taxorio refuses the switch. If you register for VAT while already in the regime, it lasts at most until the end of the year you registered.
- When you return to the standard regime you pick the last year settled by the flat-rate tax. No return or statements are filed for the years in the regime even afterwards — Taxorio doesn't offer them.
- 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. Turning on flat-rate tax doesn't erase your previous flat-rate expenses choice, so the return and statements for the year before you entered the regime are calculated the way you had them set up.
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.
Changing your VAT status doesn't rewrite the past
When you become a VAT payer, deregister, or move between VAT payer and identified person, Taxorio reads your status for past periods from your documents where they exist, and otherwise from your settings. Every invoice remembers the status at the time it was issued; being a VAT payer starts with the period of your first document with VAT (when an invoice issued while you were still a non-payer proves the earlier period) and after deregistration ends with the period of your last payer invoice. An expense belongs where its date of taxable supply (DUZP) falls.
You can enter the exact dates from the tax office decision in Company details in the VAT payer from and VAT payer until fields. They take precedence over what we derive from invoices — useful mainly when you register or deregister in the middle of a tax period, or after an import that contained only expenses. Taxorio rejects a date that contradicts your issued invoices (for example registration after your first invoice with VAT) and tells you why. When you switch from non-payer or identified person to VAT payer, VAT payer from is required — without it we would count expenses from before the registration without VAT.
- The income tax return, insurance statements, Overview and Analytics count expenses from the non-payer or identified-person period including VAT and from the payer period without VAT. The Income tax card tells you when this differs from today's settings — so you don't need to download last year's return before the change.
- After deregistering or becoming an identified person, you can still download the last VAT return and control statement for the periods when you were a VAT payer in Taxes & insurance → VAT (you choose month or quarter), and the tax calendar shows that deadline. For later periods the card tells you nothing is filed.
- The identified person's return for the months before registration comes out as an identified person's return. A non-payer who received a service from another EU country in a month files an identified person's return for that month.
- In the first registration period the VAT card reminds you of the deduction on assets and stock acquired before registration, and in the last one of reducing it. Taxorio doesn't calculate the amount on line 45 — add it in EPO.