SELF EMPLOYEED INDIVIDUALS TAX
As a Taxi, Uber driver, Uber eats, Skip the Dished or self-employed, you are considered an independent contractor. This means that, as you work for yourself, you are responsible for collecting, remitting, and filing Goods and Services Tax (GST) on all your ridesharing trips to the Canada Revenue Agency (CRA).
All fares charged by rideshare partners, including drivers like you, are now subject to the Harmonized Sales Tax (HST)/GST. Regardless of your income from ridesharing, this requirement remains the same.
Fortunately, GST is already included in every fare your riders pay. Once registered, you may be eligible to claim input tax credits (ITC) on some of your expenses as a driver. These expenses can include:
- Refreshments, magazines, and music subscriptions (XM Sirius) for your passengers
- Maintenance expenses (gas, oil, windshield washer fluid, new tires, tune-ups, etc.)
- Vehicle insurance
- Depreciation or leasing costs
- Depreciation or leasing costs
- Interest paid on car finance.
- Tolls or parking costs
- Cell phone expenses
- Uber booking fees or royalties.