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GST and GST credits on Uber income

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Hi

 

I've recently started as an Uber driver in Regional NSW and will attempt to lodge my own BAS. My questions are regarding GST and GST credits.

 

The statement that I have downloaded from the Uber Driver website provides a breakdown of the calculated income I receive in my bank account.

 

I will use the below fare calculation as an example for the purposes of my questions

  • Gross Fare - $12.82
  • Wait Time - $0.12
  • Uber Fee inc GST - ($3.56)
  • Tip - $1.00
  • Booking Fee Charged To Rider - $0.55

  • Booking Fee Charged By Uber - ($0.55)

  • NSW CTP Charge - $0.38
  • NSW Government Transport Levy - $1.10
  • Rider Fees Deduction - ($1.48)
  • Total income paid to my bank account - $10.38

 

My understanding is the GST I must pay is 1/11 of the total of: Gross Fare + Wait Time + Tip + Booking Fee + NSW CTP Charge + NSW Govt Transport Levy. In the example above, the due GST would be: ($12.82 + $0.12 + $1.00 + $0.55 + $0.38 + $1.10) = $15.97 / 11 = $1.45.

 

Is this correct?

 

With regards to claiming a GST credit, am I correct in assuming that the GST portion of the Uber Fee, Booking Fee and NSW govt charges (Rider Fees Deduction) can be claimed as a GST credit, i.e. in the example above, it would be: $3.56 + $0.55 + $1.48 = $5.59 / 11 = $0.51 ?

 

In addition to the above, would the income I report in my BAS on the above transaction be the sum of the Gross Fare + Wait Time + Tip + Booking Fee + NSW CTP Charge + NSW Govt Transport Levy? And similarly, would I claim the Uber Fee, Booking Fee and NSW govt charges (Rider Fees Deduction) as an expense?

 

Thanks in advance

AG23

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Hi @AG23,

 

Thanks for your question!

 

You've done some great work with your calculations here, but I'd like to provide you with a little more information. GST is calculated on the full fare that is charged to and paid by your passenger, which includes any fees or commissions that Uber takes out.

 

Let’s imagine that your passenger’s fare is calculated as follows:


•  Gross Fare +$12.82
•  Wait Time +$0.12
•  Uber Fee inc GST +$3.56
•  Tip +$1.00
•  Booking Fee Charged To Rider +$0.55
•  Booking Fee Charged By Uber +$0.55
•  NSW CTP Charge +$0.38
•  NSW Government Transport Levy +$1.10
•  Rider Fees Deduction -$1.48

 

Total passenger fare charged and paid = $18.60

 

In this example, you would calculate GST as 1/11th of $18.60, which is approx. $1.69.

 

For GST on purchases using the above example, you would be including the fees charged by Uber, the NSW CTP charge and potentially the Government Transport levy. This is because the Levy is a charge passed on by Uber to its riders.


This would be $3.56 + $0.55 + $0.55 + $0.38 + $1.10 = $6.14. The GST component would be approx. $0.56.

 

If you would like to learn more about your tax obligations as a ride sharing operator, you can see our guide here, and you can use our GST for BAS calculation worksheet to help you work out your sums.

 

I hope this is helpful, but please let me know if you have any other questions.

 

Thanks,

 

Rachael B.

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Hi @AG23 ,

 

We will check this one out and get back to you.

 

KylieS

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Hi @AG23,

 

Thanks for your question!

 

You've done some great work with your calculations here, but I'd like to provide you with a little more information. GST is calculated on the full fare that is charged to and paid by your passenger, which includes any fees or commissions that Uber takes out.

 

Let’s imagine that your passenger’s fare is calculated as follows:


•  Gross Fare +$12.82
•  Wait Time +$0.12
•  Uber Fee inc GST +$3.56
•  Tip +$1.00
•  Booking Fee Charged To Rider +$0.55
•  Booking Fee Charged By Uber +$0.55
•  NSW CTP Charge +$0.38
•  NSW Government Transport Levy +$1.10
•  Rider Fees Deduction -$1.48

 

Total passenger fare charged and paid = $18.60

 

In this example, you would calculate GST as 1/11th of $18.60, which is approx. $1.69.

 

For GST on purchases using the above example, you would be including the fees charged by Uber, the NSW CTP charge and potentially the Government Transport levy. This is because the Levy is a charge passed on by Uber to its riders.


This would be $3.56 + $0.55 + $0.55 + $0.38 + $1.10 = $6.14. The GST component would be approx. $0.56.

 

If you would like to learn more about your tax obligations as a ride sharing operator, you can see our guide here, and you can use our GST for BAS calculation worksheet to help you work out your sums.

 

I hope this is helpful, but please let me know if you have any other questions.

 

Thanks,

 

Rachael B.

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Hi @RachaelB 

 

Thank you kindly for your response and I think I'm beginning to understand how GST works for ride sharing income.

 

However I am somewhat confused about the inclusion of the 'Uber Fee' in the GST due calculation as my understanding is that it's a driver deduction and not an additional charge to the rider (as it's inclusive of the Gross Fare + Wait Time for which GST is also being paid).

 

Perhaps if I break it down a little differently and see if we still get the same calculation?

 

Using my original example, the following is what is charged to the rider:

  • Gross Fare - $12.82
  • Wait Time - $0.12
  • Tip - $1.00
  • Booking Fee Charged To Rider - $0.55
  • NSW CTP Charge - $0.38
  • NSW Government Transport Levy - $1.10

Total charged to rider = $15.97

 

And the following are the deductions from Uber:

  • Uber Fee inc GST - -$3.56
  • Booking Fee Charged By Uber - -$0.55

  • Rider Fees Deduction - -$1.48

Total deductions = -$5.59

 

Does this change your original calculation or am I still including the 'Uber Fee inc GST' and the 'Booking Fee Charged By Uber' in my calculation for GST to be paid? 

 

I hope I haven't confused the matter more...

 

Thanks again

AG23

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Hi again @AG23,

 

Thanks for getting back to me!

 

It's a bit of a tricky situation, as it all really depends on the way Uber charges their fees. If you have a look at the "Fares" section in the guide I've linked above, you'll see the following information:

 

"GST must be calculated on the full fare, not the net amount you receive after deducting any fees or commission. For example, if a passenger pays $55 for a fare:

  • the GST payable is $5 (1/11th of the fare)
  • the digital platform takes out their fees or commission, for example $11, and pays you $44
  • if the digital platform fee of $11 includes GST, you may be entitled to claim a GST credit of $1 (1/11th of the fee).

Some digital platforms include GST on the commission they charge. If they do, you may be entitled to claim a GST credit.

You will need to look at how each digital platform charges fares to determine the correct way to calculate your GST."

 

Using the above example, for the scenario you've posted the fare of $15.97 would have GST payable of $1.45.

 

If Uber then deducts their fee of $3.56 from the fare of $15.97, this does not change the amount of GST payable on the fare.

 

Since the $3.56 includes GST, you may be able to claim a credit for this component on your BAS. ($0.32) With respect to the Rider Fees deduction, you'd need to find out if it includes GST or not before including it in the totals for your purchases on your BAS.

 

I hope this makes sense, but please let me know if you need more information. Smiley Happy

 

Thanks,

 

Rachael B.