---
name: transaction-categorization
description: Auto-categorizes financial transactions for QuickBooks and Booke.AI with Irish VAT rules. Trigger when user mentions transactions, receipts, bank statements, expenses, or keywords like QuickBooks, categorize, VAT.
---

# Transaction Categorization

## Instructions

### Irish VAT Rates (Apply Automatically)
- Standard: 23% - Most services/goods
- Reduced: 13.5% - Tourism, accommodation, Airbnb
- Second Reduced: 9% - Utilities, newspapers
- Zero: 0% - Exports, certain foods
- Exempt: Rent/lease
- OOS (Out of Scope): Transfers, cashback

### Known Vendors (Pre-Categorized)
- Airbnb Payments → Airbnb Income @ 13.5%
- Google Payment Ireland → Subscriptions @ 23%
- Electric Ireland → Utilities @ 9%
- PayPal → Check description, default: E-commerce expense
- Revolut Transfer → Internal Transfer (OOS)

### Account Rules
- AIB ending 1195: Personal account - EXCLUDE from business
- PayPal → Revolut Pro: Internal transfer (non-taxable)
- All Airbnb income: VAT-inclusive at 13.5%

### On Transaction Data
1. Parse file (CSV, Excel, JSON)
2. Match vendor against rules
3. If match: Apply category + VAT
4. If no match: Analyze description, suggest category
5. Flag ambiguous items for review

## n8n Webhook
POST to `http://localhost:5678/webhook/transaction/categorize`

## DO NOT
- Categorize personal AIB 1195 as business
- Guess on ambiguous items - flag for review
- Forget VAT on applicable transactions

## DO
- Auto-categorize all recognized vendors
- Apply Irish VAT rules correctly
- Generate new rules for new vendors