; from https://plaintextaccounting.org/VAT


; Recording a Purchase with VAT (Input VAT)
; Example: Buying office supplies for £100 with 20% VAT.

2025-01-01 * Purchase office supplies
    expenses:office supplies                    £100
    assets:vat:input                             £20
    assets:cash                                -£120

; Recording a Sale with VAT (Output VAT)
; Example: Selling goods for £500 with 20% VAT.

2025-01-02 * Sale of goods
    assets:cash                                 £600
    income:sales                               -£500
    liabilities:vat:output                     -£100

; Balancing VAT at the end of the Period
; Example (VAT Payable): Output VAT is £100 and Input VAT is £20.

2025-01-31 * VAT adjustment
    ; consolidate smaller into larger
    assets:vat:input                            -£20 = £0
    liabilities:vat:output                       £20
    ; convert to a payable or receivable
    liabilities:vat:output                       £80 = £0
    liabilities:vat:payable                     -£80

; Settling VAT
; Example: Paying the above £80 VAT payable.

2025-02-15 * VAT payment
    liabilities:vat:payable                      £80 = £0
    assets:bank                                 -£80

; If VAT was receivable, the business would receive a refund from the tax authorities instead.

; 2025-02-15 * VAT refund
;     assets:vat:receivable                       -£80 = £0
;     assets:bank                                  £80