If you are a GST-registered ride-sharing driver, you may be able to claim GST on goods and services you buy for the services you provide , such as:
- tolls and parking fees
- registration and insurance
- service fees or commission charged by the digital platform
- a depreciating asset, such as a vehicle.
GST is claimed when you file your GST returns. You are required to hold a valid tax invoice for any expense over $50 (including GST).
You need to split your purchases and the GST on them between business and personal use - if this applies. 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. You are required to hold valid tax invoices so you can claim the GST charged.
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
- to have made your first ride-sharing trip within a reasonable amount of time after purchasing the vehicle.
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.