In a recent decision, the Federal Court has held that the UberX service supplied by Uber’s drivers constitutes the supply of “taxi travel” for the purposes of GST.
The Australian Taxation Office (ATO) has now advised that people who work as drivers providing ride-sharing (or ride-sourcing) services must:
- keep records;
- have an Australian Business Number (ABN);
- register for GST;
- pay GST on the full fare they receive from passengers;
- lodge activity statements; and
- include income from ride-sharing services in their tax returns.
If you work as a ride-sharing driver, you are also entitled to claim income tax deductions and GST credits on expenses apportioned to the services you have supplied. Whilst the record keeping for income should be straight forward, total vehicle costs requires greater effort and apportioning those will require justification.
You must register for GST if you earn any income by driving for a ride-sharing service. The usual $75,000 GST registration threshold does not apply for these activities.
And don’t think you will avoid detection by ATO – Uber and their bank(s) provide very detailed information direct to the ATO.