Budgeting
You know when a tax adds a cost to the budget, what Refund and Reporting Interval change, and why an account carries only one tax.
A tax is a percentage that KOSMA calculates on the total of an account or subaccount, for example VAT at 19%. Prices in a budget are net, so the account's own total stays the same when you apply a tax. **Refund** decides whether the tax becomes a cost in the budget or only moves money in the cash flow.
The tax office usually refunds the VAT a production pays. In the **Refund** field, enter the share you get back. At 100%, the tax costs the budget nothing. **Collect Remainder In Account** then shows **n/a** (not applicable), because there is no remainder. The cash flow still shows the tax as two movements: the production pays the VAT on the invoice and gets it back later. See [read the VAT rows](/kb/article/read-the-vat-rows).
If **Refund** is below 100%, the production pays the part it does not get back. KOSMA adds only that part to the account you choose in **Collect Remainder In Account**. That account counts toward net production costs. In the demo budget *How KOSMA Calculates*, the tax *VAT* has a **Rate** of 19% and a **Refund** of 0%. Account 501 has a total of 1,000, so KOSMA adds 190 to account 502.
You set **Refund** and the account when you [define taxes](/kb/article/define-taxes).
A new tax starts with a **Refund** of 0% and no account in **Collect Remainder In Account**. Until you choose an account, the cell is red and you cannot click **Ok**. If you get the whole tax back, enter 100 in **Refund**. The tax then needs no account.
The field is called **Collect Remainder In Account** because it receives only the part you do not get back. The matching field of a fringe, **Collect In Budget Account**, receives the whole amount the fringe calculates. See [how collect-in accounts work](/kb/article/how-collect-in-accounts-work).
Use **Reporting Interval** to choose how often the production settles the tax with the tax office: every 1, 2, 3, 6 or 12 months. A new tax starts at 3 months. The interval decides when the settlement appears in the cash flow. It never changes an amount.
If you choose a second tax for an account, it replaces the first. If two rates apply to one line, split the line into two accounts. For tax, each subaccount counts as an account of its own. Tax is the only detail that can differ from one subaccount to the next, because fringes, wage supplements and extra costs belong to the account.
If you choose a tax for an account that has subaccounts, every subaccount gets that tax. To give subaccounts different taxes, select each one and choose its tax in its own **Taxes** panel. The first new subaccount takes the account's tax. Each further one takes the tax of an existing subaccount. If those taxes differ, check the new one. For the steps, see [apply a tax to an account](/kb/article/apply-a-tax-to-an-account).
Only accounts and subaccounts carry a tax. A markup has no **Taxes** panel.
A markup is usually a percentage of net production costs. They include the part of a tax you do not get back. A tax on a markup would raise net production costs, which raises the markup, which raises the tax again. The calculation would loop forever. For the totals a markup can use as its base, see [use budget totals as a markup base](/kb/article/use-budget-totals-as-a-markup-base).
Earlier versions of KOSMA could also add the unrefunded part to a markup. KOSMA no longer offers this and removed it from all budgets. **Collect Remainder In Account** offers accounts only.
Most invoices the production receives carry VAT: from suppliers, rental houses, studios, post-production companies and freelancers. Apply a tax to these costs in the **Taxes** panel. A self-employed person who invoices the production usually charges VAT but pays no wage fringes. A fringe on their account would charge the budget for contributions the freelancer never pays. See [budget personnel and wage earners](/kb/article/budget-personnel-and-wage-earners).
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