Ride-sharing drivers must register for GST

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In a recent decision, the Federal Court has held that thenUberX service supplied by Uber’s drivers constitutes the supply of “taxi travel”nfor the purposes of GST. The ATO has now advised that people who work asndrivers providing ride-sharing (or ride-sourcing) services must:

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      nkeep records;

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      nhave an Australian Business Number (ABN);

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      nregister for GST;

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      npay GST on the full fare they receive from passengers;

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      nlodge activity statements; and

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      ninclude income from ride-sharing services in theirntax returns.

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If you work as a ride-sharing driver, you are also entitlednto claim income tax deductions and GST credits on expenses apportioned to the servicesnyou have supplied.

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Important: Clients should not act solely on the basis of the material contained in Update. Items herein are general comments only and do not constitute or convey advice per se. Also, changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. This update is issued as a helpful guide to clients and for their private information.

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