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Expense Categories

Frihet classifies your expenses into tax categories that map directly to the deductibilities permitted by the Tax Authority.

Default Categories​

The system comes with standard categories for any type of business:

Materials and Supplies​

  • Raw Materials: Materials that form part of the final product
  • Office Supplies: Paper, ink, consumable items
  • Packaging: Boxes, tape, shipping protection
  • Fuels and Lubricants: Gasoline, diesel for company vehicles

These expenses are 100% deductible from the taxable base of IRPF/Sociedades.

Professional Services​

  • Consulting and Advisory: Fees for consultants, accountants
  • Technical Services: Repairs, equipment maintenance
  • Advertising and Marketing: Ads, design, social media management
  • Financial Services: Bank commissions, administrative fees

Deductibility 100% if the service relates to business activity.

Infrastructure and Hosting​

  • Server Rental: Shared hosting, VPS, cloud
  • Domains and SSL: Domain renewals, certificates
  • Storage: NAS servers, cloud backups
  • SaaS Tools: Subscriptions (accounting, CRM, email marketing)

Expenses 100% deductible as third-party services.

Housing and Office​

  • Office Rent: Total rent (if it's a separate premise)
  • Home Office Rent: Deductible based on dedicated m²
  • Office Utilities: Telephone, internet, water, electricity (proportionally)
  • Cleaning and Maintenance: Professional cleaning services

Deductibility according to the degree of business use. Personal housing has limitations.

Transportation and Travel​

  • Fuel: Gasoline for business trips
  • Tolls and Parking: Toll payments, parking
  • Public Transport: Plane, train, bus tickets for business trips
  • Per Diem: Accommodation and meals during travel

Deductible 100% if it is direct business travel. Commuting from home to office is NOT deductible.

Other Expenses​

  • Business Insurance: Civil liability, work accidents
  • Professional Fees: Professional associations
  • Training and Courses: Related professional education
  • Books and Magazines: Professional material
  • Fund Contributions: Private pensions, investment funds (according to regulation)

Deductibility according to the specific nature of the expense.

Automatic Tax Mapping​

When you register an expense in Frihet:

  1. Select category → System obtains the permitted deductibility
  2. Apply tax type (IVA/IGIC/IPSI) → Calculates deduction
  3. Generate entries → The expense appears correctly in the tax declaration

Frihet keeps the mapping updated according to regulatory changes (in Business plan).

Create Custom Category​

If you need your own category:

  1. Go to Settings > Expenses > Custom Categories
  2. Create a new category with name and code
  3. Assign default deductibility (0-100%)
  4. Apply to future expenses

Note: Custom categories apply only to your account. For changes affecting all users, contact support.

Analysis by Category​

In Reports > Expense Breakdown:

  • View total spent by category (month, quarter, year)
  • Compare against budget if you have set it
  • Export breakdown by category for your records
  • Identify areas where you can optimize costs

Regulatory Changes​

Frihet notifies you when tax changes affect your categories. For example:

  • Change in VAT percentage
  • New permitted deduction
  • Restriction of deductibility

Receive notification in dashboard and client portal.