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.
Not sure of what to do next?
If you require assistance, please contact our office and we will be able to assist. Please call 08 9381 2704 or email firstname.lastname@example.org.
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/
Every effort has been made to offer the most current, correct and clearly expressed information possible within this blog. Nonetheless, inadvertent errors can occur and applicable laws, rules and regulations may change. The information contained in this site is general and is not intended to serve as advice. No warranty is given in relation to the accuracy or reliability of any information. Users should not act or fail to act on the basis of information contained herein. Users are encouraged to contact Affluence Chartered Accountants for advice concerning specific matters before making any decisions.