Do Uber, DoorDash and Skip drivers have to charge GST/HST?

The short answer depends on what you carry. Passengers and food follow different GST/HST rules in Canada, and many drivers do both.

Do rideshare drivers have to register for GST/HST?

Yes, from the first fare. Since July 1, 2017, the GST/HST definition of a taxi business has included transporting passengers for fares by car when the ride is arranged through an app or website (CRA, GI-196). Taxi businesses don't get the small-supplier exemption, so a rideshare driver registers "regardless of total annual revenues from taxable supplies."

The CRA's tax tip for drivers puts it plainly: "You must register for a GST/HST account the moment you start earning money from commercial ridesharing services." The registration takes effect on the day of your first fare; GI-196 says you have until the thirtieth day after it to apply.

Once registered, you charge GST/HST on fares at the rate of the province where the ride begins, file returns, and send the CRA what you collected minus what you can claim back.

Do DoorDash, Skip and Uber Eats drivers need a GST number?

Not straight away, if delivery is all they do. Delivering food or parcels isn't a taxi business, so the usual small-supplier rule applies. The CRA's tax tip says delivery-only drivers "have to register for a GST/HST account and collect and remit taxes once you exceed the small supplier threshold of $30,000 over four calendar quarters." You may register before that, by choice.

The last row is from the CRA's tax tip, which says a driver doing both must register and remit on all ridesharing fares, and can extend the registration to their other activities. Drivers in that position should check the details with the CRA or an accountant.

Who collects the GST/HST on an Uber fare?

Outside Quebec, Uber's own tax page for Canadian drivers says that "you're responsible to collect, remit, and file your sales tax" to the CRA, and that each driver's GST/HST account number "must be shared with Uber." It also says that "each week, you'll receive the GST/HST that was collected from your trips," shown on the weekly statement and on a monthly and annual tax summary. So the tax comes to you with your pay, and sending it on to the CRA is your job. Uber suggests setting that money aside.

Quebec works differently: Uber says it collects and remits GST/QST on the driver's behalf with Revenu Québec, though the driver still files annually. GI-196 allows for this kind of arrangement in general terms: a ride-sharing company that a driver has duly authorized "may agree to carry out some of these requirements on behalf of the driver."

Can you claim back the GST/HST you pay on gas and repairs?

Yes, once you are registered, through input tax credits (ITCs). GI-196 lists gasoline, vehicle repairs and maintenance, and vehicle leases or purchases among the expenses a registered driver can generally claim ITCs on. The CRA's page for taxi and ride-sharing drivers adds washes to that list and one exception: "You cannot claim ITCs for insurance costs or interest because they are not subject to the GST/HST." Personal use doesn't count either: for a car you also drive privately, you split the GST/HST between business and personal use. The business share of kilometres from your logbook is the natural basis for that split (our inference; see what a mileage log should include).

Keep every fuel and repair receipt that shows the GST/HST. Without them you can't support the claim.

What is the Quick Method, and should a driver use it?

The Quick Method is a simpler way to work out what you remit. You still charge the full GST/HST, but you remit your sales (tax included) times a remittance rate the CRA sets, which "take[s] into account the GST/HST that you pay" on your expenses (CRA, RC4058). GI-196 says ride-sharing drivers can generally choose it if their annual taxable revenues, including those of associates, are no more than $400,000. The trade-off is that you can't claim ITCs on most purchases, and once you choose it you generally keep it for at least a year. Whether it comes out ahead depends on how much you spend on fuel and repairs, so it's worth running the numbers both ways with an accountant before choosing.

What if you didn't register when you should have?

The CRA's tax tip says unreported income or GST/HST that wasn't remitted may lead to penalties and interest. It points to options for correcting past filings, including the Voluntary Disclosures Program, which may reduce or avoid penalties and interest in some cases. The same page notes that drivers must report all of their income, including tips, on their income tax return, whatever their GST/HST position. Our article on taxes for Uber, DoorDash and Skip drivers covers the income tax side.