GST-registered ride-sharing drivers or food and beverage deliverers, need to file GST returns. The fares or delivery fees are included as zero-rated supplies. You can claim GST on your costs.
Ride-sharing fares and delivery fees
GST is charged on the full fare passengers pay for ride-sharing services and delivery fees customers pay for food and beverage deliveries. Usually the online marketplace you're using calculates the full fare or delivery fee, including GST and pays the GST to us.
The service you provide through the marketplace is treated as a zero-rated supply to the online marketplace operator. They on-supply the service to the customer with GST of 15% added. You must include the full fare or delivery fee without GST in your GST return as sales and as a zero-rated supply. The result is $0 GST for you to pay.
Include the full fare or delivery fee, not the net amount you receive after deducting any marketplace fees or commission.
You will need to look at how each online marketplace charges fares or delivery fees as well as their fees or commission to work out the right way to calculate your GST.
Some online marketplaces include GST on their fees or commission. If they do you can claim the GST on these.
When you must pay GST on your fares or delivery fees
If you're GST-registered, GST must be paid by you on the full fare or delivery fee when:
- the online marketplace you're using is not GST-registered
- the service is not provided through an online marketplace.
Expenses
You can claim GST included in the price of goods and services you buy, to the extent they relate to the ride-sharing and food and beverage delivery services you provide, such as:
- fuel
- tolls and parking fees
- registration and insurance
- service fees or commission charged by the online marketplace
- an asset, for example, a vehicle.
You claim GST when you file your GST returns.
You must keep taxable supply information for your expenses. Our handy online tool will help you decide on the records you need to keep when you buy goods or services.
How taxable supply information for GST works
Only business expenses are claimable
You need to split your expenses 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.
You must keep records (for example, a logbook) to support your expense claims for business use. You cannot claim expenses related to the private running of your vehicle.
GST adjustments for business or private use
Service fees or commissions
You may be charged GST on service fees or commissions deducted by a GST-registered online marketplace. If this is the case, you can claim the GST if you're GST-registered.
Your online marketplace will provide you with taxable supply information if it charges GST on service fees or commission deducted from the gross fare or delivery fee that it pays to you. You must return the full fare or delivery fee (without GST) as sales and zero-rated supplies and include any GST on service or commission fees in the purchases and expense section.
A passenger pays $115 ($100 plus $15 GST) for a fare. Your online marketplace takes a fee of $12 GST inclusive and pays you the net amount of $88.00 ($100 less $12).
To complete your GST return:
- You must include the full fare of $100 exclusive of GST (20/23rds of the $115 fare) as a sale and as a zero-rated supply.
- You can claim the GST on the marketplace fee of $1.57 (3/23rds of $12) by including $12 as an expense.