GST Warning: Ride-share providers must be GST-registered.

In accordance with the GST Act, those offering 'taxi travel' services are obligated to register for GST, irrespective of their annual turnover (i.e. the usual $75,000 threshold does not apply).

This determination was confirmed by the Federal Court in the case of Uber B.V. v FCT [2017] FCA 110, which established that ride-sharing drivers' services fall under the category of taxi travel for GST purposes.

Consequently, individuals engaged in ride-sharing services, such as those provided by Uber, Ola, Didi, and others, must initiate GST registration regardless of their turnover. This means they are required to pay GST on their entire fare receipts and they will also have the ability to claim input tax credits for eligible expenses.

Additionally, ride-share drivers are required to file Business Activity Statements (BAS) and provide tax invoices when necessary. It is crucial to bear in mind that the ATO are closely monitoring the tax compliance of ride-sharing drivers.

If you have any questions in relation to tax compliance for ‘taxi travel’ services, please contact us.