If you are a GST-registered ride-sharing driver, you may be able to claim GST on goods and services you buy to the extent they relate to the services you provide, such as:
- tolls and parking fees
- registration and insurance
- service fees or commission charged by the digital platform
- an asset, for example, a vehicle.
GST is claimed when you file your GST returns.
You must keep records (for example, a logbook) to support your expense claims for business use. You can not claim expenses related to the private running of your vehicle.
If you receive a tax invoice, please keep it in your records.
If you do not receive a tax invoice, you can keep other records that are sufficient on their own, or in combination to support your expense claims. For example:
- supplier agreements
- bank statements.
Record keeping requirements are changing on 1 April 2023:Rules for tax invoices are changing on 1 April 2023
Only business expenses are claimable
You need to split your purchases and the GST on them between business and personal use - if this applies, for example, if the vehicle is not used solely for business purposes. You can only claim the GST input for the business part of the expense.
Service fees or commission
You may be charged GST on service fees or commissions deducted by a GST-registered digital platform. If this is the case, you can claim the GST if you're GST-registered.
Your digital platform will provide you with a tax invoice if it charges GST on service fees or commission deducted from the gross fare that it pays to you. Please note the correct treatment is to return the gross fare as sales and include any GST on service or commission fees in the claims section.
Purchasing or upgrading a vehicle
When purchasing or upgrading a vehicle for ride-sharing activities, you need to have genuinely been in business at the time of purchase to claim the GST input. This means you need to:
- be registered for GST at the time of purchasing the vehicle
- have made your first ride-sharing trip within a reasonable amount of time after purchasing the vehicle.
You can only claim GST on the purchase to the extent the vehicle will be used for your ride-sharing activities. If you acquire a vehicle for business use and you change or partially change its use to private, you may have to make adjustments for this in your GST return.