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Overview

This section explains how GST is calculated for both Merchants and Customers, when it applies, and how it influences overall transaction totals. Understanding GST is essential for accurate invoicing and compliance with tax laws.

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Understanding GST

Goods and Services Tax (GST) is a transaction-based tax applied to the sale of Goods and Services, with some of them exempt from GST (e.g., financial asset transfers). Merchant GST is applied to the value of Goods and Services sold by the Merchant. Factor GST is applied to Service Fee and Late Fee charged to Customer by Score.

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Formula

Merchant GST = Billing Amount × Applicable GST Rate

Factor GST = ( Service Fee Amount + Late Fee Amount ) × Applicable GST Rate

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Key Notes

GST is applied only to taxable components of a transaction.
GST is not applied to the value of invoices purchased by Score from the Merchant, as such transactions are classified as financial asset transfers.