UBER BAS and Tax help

There is enormous help available at ATO website for ride sharing (UBER drivers) to lodge their tax and BAS obligation. Recently, there was a webinar where highly knowledgeable questions were asked by many UBER drivers from the ATO. Some of the questions and their answers are as below

Click here to access full webinar question and answers

If a driver is working part time (income of $200-400 per week, 10,000-20,000 per year) do we need to register for GST?

Yes, you will need to register for GST if you are carrying on an enterprise, regardless of your turnover or income. The $75,000 GST registration threshold does not apply to ride-sourcing drivers. We consider it likely that you are carrying on an enterprise, but for more information, go to https://www.ato.gov.au/ridesourcing

Allowable Deductions, when must I register for GST (is it beneficial to me to register before the $75,000 threshold?)

The $75,000 GST registration threshold does not apply to ride-sourcing drivers, who must pay GST from their first dollar of ride-sourcing income. For more information, go to https://www.ato.gov.au/ridesourcing

During today’s webinar it was said that an enterprise provides an invoice to its customers. As a ride source driver, I do not provide invoices and I am unlikely to have to (fare never gets near $82.50 which is start amount for invoicing/GST riders) Therefore if not an enterprise then no need for ABN/GST.

As a ride-sourcing driver, we consider that you are likely to be carrying on an enterprise even if you do not issue tax invoices. Your obligation to provide tax invoices for fares over $82.50 (including GST) is separate to the enterprise issue. Whether you are carrying on an enterprise will depend upon a number of factors, such as whether you have a profit-making intention. Find out more https://www.ato.gov.au/business/starting-your-own-business/business-or-hobby-/

I'm a tax agent, I have a client who has registered their ABN but it wasn't set up as registered for GST. Do I just ring the ATO and have this back dated from the date started?

The ATO has given drivers until 1 August 2015 to register for an ABN and GST, so they are not required to backdate their registration. However, drivers may choose to backdate if they want to claim input tax credits or have been collecting GST. Generally, the ATO will accept voluntary registration backdate requests. If a driver earned ride-sourcing income prior to 1 August 2015, they will still need to account for this income in their income tax return – this is separate from the requirement to account for GST. Registration can be done online through the Tax Agent Portal, over the phone or by ordering a form.

If I act for an Uber driver, should I be telling the client to be registered for GST? Has the ATO entered into discussions with Uber?

Yes, you will need to register for GST if you are carrying on an enterprise, regardless of your turnover or income. The $75,000 GST registration threshold does not apply to ride-sourcing drivers. We consider that drivers providing ride-sourcing services are providing ‘taxi travel’ under the GST law and we will be administering the GST law on that basis. We expect drivers to register for GST in line with the ATO’s guidance by 1 August.

We consulted with a range of stakeholders including facilitators in developing our guidance and are having ongoing discussions with them.

How am i an enterprise? I do not provide invoices to passengers and will not need to in my recent experience with fares below the threshold. If I am not an enterprise, then no need to register for GST?

See responses to question 3.

Although issuing invoices or other receipts (whether you do it or a ride-sourcing facilitator does it on your behalf) may suggest that you use business-like methods, it is one of many factors to be taken into account. On its own, it does not determine whether you are carrying on an enterprise.

So, my understanding is that GST will not be back dated and chased at this stage, just from 1/8/2015 onwards? Does this mean income will basically be treated like a 2nd job for last financial year?

Yes, the ATO does not intend to apply compliance resources regarding GST obligations for drivers prior to 1 August 2015 unless there is evidence of fraud, or other significant matters. Ride-sourcing income that you earned last financial year needs to be declared in your income tax return, and will be taken into account when assessing your final income position. Whether ride-sourcing is your second job or not does not change this treatment.

Ride-sourcing income that you earned last financial year needs to be declared in your income tax return, and will be taken into account when assessing your final income position. Whether ride-sourcing is your second job or not does not change this treatment.

How will you get all the ride-sourcing drivers to apply for an ABN, and how will you get them to register for and pay there GST

Our priority is to work with drivers to assist them to voluntarily comply. For those that choose not to comply, we have access to a range of information that will assist us to identify and contact these drivers.

How will the ATO make the drivers aware they have to register for GST? When the driver does not use the service of an accountant.

The ATO has done a range of things to make ride-sourcing drivers aware of their tax obligations, such as issuing public guidance, posting on social media and holding webinars and posting information on forums.

UBER BAS and Tax help

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