For those clients providing ‘ride-sourcing services’ (such as those offered via Uber), the ATO’s latest communication on this matter contained the following example.
“If you provide ride-sourcing services to the public you are likely to be carrying on an enterprise. “If you are registered, or required to be registered, GST must be calculated on the full fare, not the net amount you receive after deducting any fees or commissions.”
“For example, if a passenger pays $55 and the facilitator pays you $44 (after deducting an $11 commission), the GST payable is $5 (not $4).”
“GST credits on your business purchases can be claimed, but must be apportioned between business and private use.”
“For example, if you use your car 10% for ride-sourcing and 90% for private purposes, and you:
- buy a new car to use for your ride-sourcing activity for $33,000 (including $3,000 GST), you may claim a GST credit of $300
- pay $110 for fuel (including $10 GST), you may claim a GST credit of $1
- pay $220 for a service (including $20 GST), you may claim a GST credit of $2.”