Budgeting
You can add a tax to a budget with its rate, its refund and the account for the part you do not get back.
You define each tax once per budget, for example VAT at 19%. After that, you give the tax to the accounts it applies to. See [apply a tax to an account](/kb/article/apply-a-tax-to-an-account).
In Budgeting, click any account. Next to **Account Details**, click **Settings for account details** (the gear icon), and then click **Taxes**. KOSMA opens the **Taxes** window.
You can use this button only while an account is selected.
Click **Tax Definition**. KOSMA adds a row named *New Tax 1*, with a rate of 0% and a refund of 0%.
KOSMA selects the new name, so you can type your own straight away, for example "VAT 19%". Press Enter to confirm it. You can use each name only once. Then click **Rate** and enter the percentage, for example 19.
In **Refund**, enter the share of the tax you get back. If you get the VAT back in full, enter 100. Most countries refund the VAT in full.
At 0%, you get nothing back. The whole tax is then a cost in the budget. A new tax starts at 0%.
If **Refund** is below 100%, click **Collect Remainder In Account** and choose an account. KOSMA books the part you do not get back to this account as a cost.
Type the account number to find the account faster.
As long as this field is empty, it has a red frame. You cannot click **Ok** until you choose an account. If **Refund** is 100%, the field shows *n/a*. There is nothing left to book.
If the account already has an amount of its own, KOSMA asks *Overwrite calculation?* When you click **Continue**, the account loses its own amount. After that, the account contains only the tax. In the demo budget, account 101 drops from 1,000.00 EUR to 190.00 EUR. Choose an account without an amount of its own.
If another tax already uses the account, KOSMA asks *Add to collection account?* Click **Continue**. The account then contains both taxes.
Click **Reporting Interval** and choose how often you settle the tax with the tax office: every 1, 2, 3, 6 or 12 months. A new tax starts at 3 months.
The interval does not change the budget. It decides when the tax appears in the cash flow plan. A payment to the tax office appears one month after the end of each period. A refund appears two months after. The periods start in January.
If you no longer need a tax, check **In Use** first. It shows how many accounts and markups use the tax. Then click **Delete** (the trash icon) at the end of the tax's row.
- If nothing uses the tax, KOSMA asks *Are you sure you want to delete tax …?* Click **Ok**. - If something uses the tax, KOSMA shows how often it is in use and offers **Delete anyway**. When you click it, KOSMA removes the tax from every account that uses it.
KOSMA deletes the tax when you click **Ok** in step 7.
Click **Ok**. KOSMA saves the taxes and closes the window. Click **Cancel** to discard every change you made in the window.
**If you cannot click Ok.** A tax with a refund below 100% has no account for the part you do not get back. Its **Collect Remainder In Account** field has a red frame. Choose an account there, or set **Refund** to 100. You can then click **Ok**.
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