Thanks, Andrzej, I think that will work. GST is the same as VAT. I'll use a 
query on fava to calculate the income tax unless someone has a better idea.

On Tuesday, 28 January 2020 22:17:02 UTC+13, Andrzej wrote:
>
> I'm not sure how GST exactly works, but here is what I do for VAT - 
> instead of booking it to Income account, I book it to Liabilities:VAT 
> account. Note that both income and expense accounts exclude VAT amounts.
> - I can easily see my income  (excluding VAT). To compute tax, I query for 
> income in a given time frame and eligible expense accounts - this part is 
> manual for me
> - balance of Liability:VAT is how much VAT I have to pay in tax
> 2020-01-28 * ""Invoice XX 15% VAT""
>   Assets:Checking      115 
>   Income:ClientA:Net  -100
>   Liabilities:VAT -15
>
> 2020-01-28 * "Business expense 20% VAT"
>   Assets:Checking -120
>   Expenses:Equipment 100
>   Liabilities:VAT 20
>
> On 28/01/2020 10:03, DP wrote:
>
> Hi,
>
> Beancount newbie here so still struggling with the basic accounting 
> concepts.
>
> I work as a freelance developer. For each invoice I must collect GST/VAT 
> (15%). Every six months I must pay the collected GST, minus GST deduced 
> from my business expenses. Similarly I must pay income tax every 6 months 
> at a given rate (30%), calculated as the difference between my income less 
> business expenses.
>
> For example, a typical invoice transaction might look like this.
>
> 2020-01-28 * ""Invoice XX""
>   Assets:Checking      115 
>   Income:ClientA:Net  100
>   Income:GST  15
>
> Ledger's Virtual Posting would allow to easily keep track of the owned tax 
> like this:
>
> 2020-01-28 * ""Invoice XX""
>   Assets:Checking      115 
>   Income:ClientA:Net  100
>   Income:GST  15
>   (Liability:Tax:GST 15)
>   (Liability:Tax:Income 30)
>
>
> I understand the reason why beancount doesn't support VIrtual Postings, 
> but I can't figure out what would make be a good strategy to produce a 
> balanced transaction and keep track of how much money I owe the taxman at a 
> given time.
>
>
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