Cash Flow
You know what the three VAT rows of a cash flow plan show, when Declared taxes falls due and why a plan can show no VAT rows.
A cash flow plan has three rows for VAT: **Invoiced taxes** at the end of **Income**, and **Paid taxes** and **Declared taxes** at the end of **Expenses**. They show when the production pays VAT, when VAT comes in with the financing and when the production settles the difference with the tax authorities.
| Row | What it shows | | ------------------ | -------------------------------------------------------------------------------------------------------------------- | | **Invoiced taxes** | The VAT on financing sources that have a tax, in the period in which the source's cash flow rule pays | | **Paid taxes** | The refundable part of the VAT on budget accounts that have a tax, in the period in which the account's rule pays | | **Declared taxes** | The settlement with the tax authorities: the amount the production pays, or the refund it gets as a negative amount |
If a tax is refunded at less than 100 %, the part that is not refunded does not appear in **Paid taxes**. That part is a real cost. KOSMA books it to the account you chose under **Collect Remainder In Account**. You set how much of a tax is refunded in the **Refund** column, see [define taxes](/kb/article/define-taxes).
There is no separate row for refunds.
KOSMA settles VAT once per reporting interval of the tax. You set the interval in the **Reporting Interval** column of the **Taxes** window, see [define taxes](/kb/article/define-taxes). If the column is empty, the interval is 3 months. The intervals count from January, so quarters end in March, June, September and December. KOSMA settles taxes with different intervals separately.
For each interval, KOSMA subtracts **Paid taxes** from **Invoiced taxes** and enters the result in **Declared taxes**:
- If the production owes VAT, **Declared taxes** shows a positive amount 30 days after the last day of the interval. The amount adds to **Expenses**. - If the production gets a refund, **Declared taxes** shows a negative amount 60 days after the last day of the interval. The amount lowers **Expenses**.
For the first quarter of 2026, a payment falls on 30 April 2026 and a refund on 30 May 2026.
An example with a tax of 19 %, fully refunded, and an interval of 3 months: an account of 100,000 is paid in February 2026, and **Paid taxes** shows 19,000 in February. A financing source of 50,000 arrives in March, and **Invoiced taxes** shows 9,500 in March. For the quarter, 9,500 minus 19,000 gives −9,500. **Declared taxes** shows −9,500 in the period that contains 30 May 2026.
Over the whole plan, the VAT rows do not change the cash flow: what **Invoiced taxes** adds to **Income**, **Paid taxes** and **Declared taxes** add to **Expenses**.
A VAT row appears only when it has an amount. **Invoiced taxes** and **Paid taxes** appear when their total is above 0. **Declared taxes** appears as soon as one interval has an amount to settle, including a negative one.
An account or financing source adds nothing to the VAT rows if it has no tax, or if it has a tax but no cash flow rule. You define taxes in the budget. The demo project has no taxes, so its cash flow plans show no VAT rows.
If the production pays VAT on an account that has no tax, the plan does not show that payment. To include it, see [apply a tax to an account](/kb/article/apply-a-tax-to-an-account). To give an account or a source its dates, see [set a cash flow rule on an account](/kb/article/set-a-cashflow-rule-on-an-account) and [set a cash flow rule on a source](/kb/article/set-a-cashflow-rule-on-a-source).
To bridge the time until a refund arrives, see [add a credit line](/kb/article/add-a-credit-line).
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