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Re: Commercial Passenger Vehicle Service Levy - Victorian Government Levy

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GST requirements of ride-sourcing:

 

According to the ATO website, when calculating GST on sales for the BAS at line 1A, GST must be calculated on the Full Fare before any commission and fees are deducted. 

As per the link below:

 

https://www.ato.gov.au/general/ride-sourcing-and-tax/fares

 

My questions are: The Victorian Government Levy is also deducted from the fare, so should the Victorian Government Levy be added back to the fare to produce the full fare and then declared on the BAS at line 1A?

 

Further, according to the invoice from UBER, the GST on the Victorian Government Levy is NOT stated at 10% - e.g. a levy of  $27.50 excluding GST has a GST value of $2.34.  Can you tell me which GST value is correct for the sales and purchases declared on the BAS?

 

 

 

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Hi @STofts,


The GST you pay to us is one-eleventh of the total amount charged to and paid by your passengers.


As a passenger movement levy is an Australian tax, the payment of the levy to the government does not attract GST. Where a provider chooses to on-charge the levy (whether to a passenger or within the industry), it will be treated solely as an increase in price for the supply between the parties.


This is because the relief provided by section 81-5 of the GST Act only applies to the payment of an Australian tax. On-charging the passenger service levy is not the payment of an Australian tax; it is a business decision made to recover an increased cost to the supplier.


If you have concerns about how this is reflected on your invoice, you should contact the platform (Uber).


There is a discussion about passenger levies on our website.


I hope this helps, SueO

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Hi @STofts,

 

Welcome to our Community, and thank you for your question.

 

We are seeking some additional information from a specialist area and will respond asap.

 

Thanks, SueO

Most helpful response

ATO Certified Response

Community Support

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Hi @STofts,


The GST you pay to us is one-eleventh of the total amount charged to and paid by your passengers.


As a passenger movement levy is an Australian tax, the payment of the levy to the government does not attract GST. Where a provider chooses to on-charge the levy (whether to a passenger or within the industry), it will be treated solely as an increase in price for the supply between the parties.


This is because the relief provided by section 81-5 of the GST Act only applies to the payment of an Australian tax. On-charging the passenger service levy is not the payment of an Australian tax; it is a business decision made to recover an increased cost to the supplier.


If you have concerns about how this is reflected on your invoice, you should contact the platform (Uber).


There is a discussion about passenger levies on our website.


I hope this helps, SueO