04 March 2017 - GAP Accountants

Ride-sourcing is ‘taxi travel’

In a recent case, the Federal Court has agreed with the ATO that ‘ride-sourcing’ (such as that provided using Uber) is ‘taxi travel’ within the meaning of the GST law.

Drivers are also entitled to claim income tax deductions and GST credits (for GST paid) on expenses apportioned to the ride-sourcing services they have supplied.

The ATO has advised people who are taking up ride-sourcing to earn income should:
  • keep records;
  • have an Australian business number (ABN);
  • register for GST, regardless of how much they earn, and pay GST on the full fare received from passengers for each trip they provide;
  • lodge activity statements; and
  • include income from ride-sourcing in their income tax returns.
The ATO warns that they can match people who provide ride-sourcing through data-matching, and will continue to write to them to explain their tax obligations.
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