Ride Sharing Services
Are you currently providing ride-sharing services such as Uber, GoCatch, etc?
If so, do you know that you must register for an Australian Business Number (ABN)?
Not only that, you are also required to be registered for GST (regardless of how much you earn) and lodge Business Activity Statements (BAS).
The GST you collect is based on the full fare not on the net income you receive from the facilitator (ie. Uber).
GST credits can only be claimed when they relate to transporting passengers for a fare.
In any case, record keeping is essential to substantiate all claims.
If you earn regular income from your ride-sharing business, you can also choose to enter into a PAYG (Pay As You Go) instalment system to pre-pay your tax so you can avoid a large tax bill at the end of financial year.
Don’t get caught out! Call us now if you would like to find out more about Ride-Sharing tax obligations!