3. Where possible in the same month that the
original invoice was raised.
How does Goods and Services
Tax apply?
During any month, Capricorn Members purchase
goods and services from Capricorn Preferred
Suppliers (“Supplier(s)”) like you and pay for those
goods and services using their Capricorn account.
Upon purchase, the Supplier should provide a tax
invoice to the Member addressed to the Member.
The Member uses the tax invoice to claim Goods and
Services Tax (“GST”) input credits when preparing
their Business Activity Statement (“BAS”). Likewise,
the Supplier remits GST collected from sales when
they prepare their BAS return.
The role of Capricorn is to collect Member sales data
from Suppliers and make payment to Suppliers on
agreed terms. For this service, Capricorn charges
what it calls a “Service Fee”. The Service Fee is
calculated at an agreed percentage of gross (GST
inclusive) Member transactions. GST is then charged
on the Service Fee and a tax invoice is provided by
Capricorn to the Supplier. Whilst the Service Fee is
calculated based on the Member(s) transactions, for
taxation purposes, the payment by Capricorn to the
Supplier of the Service Fee is a separate and different
transaction from that involving the Member and
Supplier.
23.