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Paušálne výdavky

lump-sum (fixed) expenses — simplified accounting for živnosť (sole-trader licence) expenses

What does “Paušálne výdavky” mean in Slovakia?

Paušálne výdavky (lump-sum expenses) are fixed expenses: a simple way for a živnostník (Slovak sole-trader licence holder) to calculate expenses for taxes. Instead of collecting receipts for every real expense, you deduct a certain percentage of your income as expenses.

This is the main advantage — you don't need to keep detailed records of real expenses and save all documents. You simply state the lump-sum expenses in your tax return.

What to consider

The percentage and maximum amount are set by law (usually around 60% of income with an annual limit).
This is beneficial if your real expenses are small.
If your real expenses are high, it is sometimes more beneficial to calculate them actually.

You can choose lump-sum expenses directly in your annual tax return — a separate application is usually not needed. The main thing is to decide before submitting, because it is difficult to change the accounting method retroactively.

Important. Lump-sum expenses are not suitable for everyone: if your actual expenses for materials or goods are high, calculate both options — real expenses may reduce your tax more.

Examples of use

I am claiming lump-sum expenses.

I am using lump-sum (fixed) expenses.

With a lump-sum tax, I don't need to collect receipts.

With a lump-sum lump-sum tax, I don't need to collect receipts.

Are actual expenses more beneficial for me?

Frequently asked questions

Who is eligible for lump-sum expenses?

First of all, for sole traders with small real expenses — for example, those who provide services and buy almost no materials. Then a fixed percentage is more profitable than real accounting.

Do you need to keep receipts for a lump sum payment?

You do not need to document real expenses because you write off a fixed percentage. But you must record income (invoices) anyway.

What exact percentage can be written off?

The percentage and maximum amount are set by law, and they can change. It is best to check the current numbers on the official tax office website or with an accountant before submitting your declaration.