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Fares and fees paid to you from ride-sharing and food and beverage delivery services are taxable income. You may also have goods and services tax (GST) obligations.

What ride-sharing is

Ride-sharing is an ongoing arrangement where:

  • you, a driver, make your car available for public hire on an online marketplace (also known as a digital platform) for example, Uber, Zoomy or Ola 
  • a passenger uses the online marketplace's website or app, to request a ride - entering into a contract directly with you the driver.
  • you use your car to transport the passenger for a fare.

Food and beverage delivery

Food and beverage delivery is a process where a store, restaurant, or independent delivery company delivers food and or beverages to customers. Food and beverage delivery does not include supplying the food and beverages themselves.

Food and beverage delivery in the sharing economy is an ongoing arrangement where:

  • you, a deliverer, make yourself available on an online marketplace
  • a customer uses the online marketplace's website or app, to request delivery of food or beverages - entering into a contract directly with you the deliver
  • you use your vehicle to transport the items for a fee.

Income tax obligations

For income tax you must:

  • have an IRD number
  • include the gross fares or delivery fees you earn in your income tax return
  • only claim expenses directly relating to you providing a ride-sharing or food and beverage delivery service
  • keep records of all your income and expenses.

GST obligations

For GST you must:

  • tell the online marketplace you're using your GST registration status and if it changes
  • register for GST if you have earned or will earn more than $60,000 from all taxable activities including gross fares and delivery fees in any 12-month period
  • keep all records of your income and expenses.

GST for drivers, deliverers and accommodation hosts

If you're also providing taxi services or other delivery services that are not facilitated through an online marketplace, the ordinary GST rules apply to those fares or fees and you may have to pay GST.

GST (goods and services tax) 

When the listed services rules for food and beverage delivery do not apply

The listed services rules for food and beverage delivery do not apply when:

  • the business operating the website or app enters a contract with a customer for the delivery of their food and beverages
  • that business engages the services of an independent contractor or an employee to carry out the delivery services.

In these cases the business is the supplier of the services and not the independent contractor or the employee. GST will usually already apply to these services.


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Last updated: 13 Jun 2024
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