Ride-Sourcing Is Taxi Travel
Following recent Federal Court cases, the ATO position is that “ride-sourcing” (for example, Uber driving) is “taxi travel” when considering the GST requirements.
For GST purposes, the word ‘taxi’ means a car (vehicle) made available for public hire that is used to transport passengers for fares.
The ATO has advised that clients with a ride-sourcing business should:
Keep proper records;
Have an ABN & register for GST – there is no minimum turnover requirement for a ride sourcing business;
Pay GST on the full fare (prior to the Uber fee or similar being deducted);
Lodge activity statements;
Include the income in their tax returns. Drivers are entitled to claim income tax deduction and GST credits on expenses related to the ride-sourcing services they have provided. It would be recommended to keep a logbook for a 12-week period to substantiate your motor vehicle deductions.
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If you would like to further information, please see the following link: https://www.ato.gov.au/General/The-sharing-economy-and-tax/Ride-sourcing/
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