A recent Uber court case has seen the Federal Court dismiss Uber’s appeal of GST inclusion.
For the many individuals who use Uber for both business and private travel, the Federal Court has recently dismissed Uber’s appeal of the ATO’s inclusion of ride-sharing as a ‘taxi service’ for the purposes of GST.
The effect of this inclusion is quite profound in that those drivers providing ride-sharing services must (like those providing taxi services) register for GST as soon as they start driving (rather than needing to have a turnover of $75,000). Having registered they:
- Must charge GST on the full fare
- Must provide a tax invoice to a passenger where they request it and the value of the fare is over $82.50 (including GST)
- Are entitled to claim GST on business purchases associated with the travel (such as the car itself, fuel, servicing etc.). However, these claims must be apportioned to take account of any private usage of the vehicle.
For your part as the passenger, you are entitled to claim the GST on work-related fares. Where the fare is below $82.50 (most cases) you will not need a tax invoice to claim GST. Where it exceeds this amount, you should request a tax invoice.