GST/HST registration for Uber drivers: required from the first ride, Uber Eats only after $30,000

Why do Uber drivers need a GST/HST number from the first ride?

Since July 1, 2017, the Excise Tax Act definition of a taxi business has included people who transport passengers for fares by motor vehicle within a municipality when the ride is arranged through an app or other electronic platform (CRA GST/HST Info Sheet GI-196). Taxi businesses must register for GST/HST even if they are small suppliers, so a self-employed Uber or Lyft driver needs a GST number for Uber work immediately.

The CRA's registration page says your effective date of registration is the day you start supplying taxable passenger transportation, and you then have 29 days to apply. Driving a few weekends a year does not change this: the $30,000 threshold that protects most small side businesses does not apply to commercial ride-sharing.

How to register

1. Have your Social Insurance Number, address, the date you started driving and an estimate of annual fares ready.
2. Apply through Business Registration Online, which needs a CRA account, or register by phone or by mailing Form RC1.
3. Choose the effective date as your first day of driving, even if that date has passed.
4. Receive your 15-character GST/HST number (9-digit Business Number plus RT0001) and give it to the platform in your driver tax settings.
5. Note the reporting period the CRA assigns you; most new drivers are annual filers.

Drivers based in Quebec register with Revenu Quebec, which administers both GST and QST there. The general registration steps and documents are also covered in our GST/HST registration guide.

Do Uber Eats couriers need to register for GST/HST?

Not at first. The CRA says a driver who only provides delivery services, through apps such as Uber Eats or SkipTheDishes, registers for GST/HST once sales exceed the $30,000 small supplier threshold over four calendar quarters. Below that, a delivery-only courier charges no GST/HST and files no GST/HST returns.

Mixing the two changes the picture. If your combined ride-share and delivery income is under $30,000, the CRA says you charge GST/HST only on the rides, not on the deliveries. Once the combined total passes $30,000, you are no longer a small supplier and tax applies to both. A courier can also choose to register voluntarily to claim input tax credits.

Who collects the GST/HST on Uber fares?

The legal responsibility stays with the driver. The CRA's sharing economy page says it is still your responsibility to make sure GST/HST is charged and collected on all fares, and GI-196 notes that a platform may handle some obligations only where the driver has authorized it.

In practice, check your platform's annual tax summary. It shows the fares and the GST/HST attributed to your rides, which are the starting figures for your return. If a fare was charged tax-included, back out the tax with the CRA fractions: 5/105 in a GST-only province, 13/113 in Ontario, 14/114 in Nova Scotia and 15/115 in New Brunswick, Newfoundland and Labrador and PEI.

How do ride-share drivers file a GST/HST return?

A registered driver files a GST/HST return for every reporting period, even a period with no rides. Most drivers are annual filers, which for an individual with a December 31 year end means paying by April 30 and filing by June 15.

Worked example: an Ontario driver, regular method vs quick method

With these costs, the quick method saves about $396, because the driver's taxable expenses are modest. A driver who spends heavily on fuel and repairs may do better with the regular method. The rates and the break-even logic are explained on our GST quick method page.

File online through My Business Account, which needs no access code, or through the GST/HST NETFILE form with your 4-digit access code. Once your annual net tax reaches $3,000, the following year may bring quarterly GST/HST instalments.

Can Uber drivers claim input tax credits on vehicle costs?

Yes. The CRA's page for taxi and ride-sharing drivers lists fuel, vehicle repairs and vehicle leases as expenses that can qualify for input tax credits. Insurance and interest do not qualify, because no GST/HST is charged on them.

• Claim only the business-use share when the car is also used personally. A driver whose logbook shows 60% ride-share kilometres claims 60% of the tax on fuel and repairs.
• Keep receipts showing the supplier's GST/HST number for purchases of $100 or more.
• A vehicle purchase or lease is also subject to the passenger vehicle rules; the CRA's taxi guidance and your logbook determine what can be claimed.
• Under the quick method, credits on everyday costs are replaced by the flat rate, but tax on capital property such as the vehicle can still be claimed.

GST/HST is only half of a driver's tax picture. Fares net of GST/HST are business income on Form T2125 with your T1 return, and CPP applies to the profit; see our Uber driver taxes in Canada page and the GST/HST small business hub for the full cycle.