The Federal Court recently handed down the Uber decision confirming that ‘ride-sourcing’ is taxi travel for GST purposes.
Uber drivers should be aware that unlike other businesses, a ‘taxi business’ is required to register for and charge GST immediately. There is no turnover threshold (regular businesses are not required to register for GST unless there turnover exceeds $75,000).
Failure to register and properly pay GST could see audited Uber drivers lose 1/11th of their income (applied as GST), plus be subject to penalties and interest for failure to comply with the law. The ATO have advised they will be data-matching in this area of interest, so the chances of getting caught are high.
For more information, please refer to the ATO’s guide on provide taxi travel services contact your usual Hanrick Curran adviser.
Please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice.