How much GST do I pay?

FarhanZafraf

New Member
Hi all,

I drive for Uber part-time and earn about $300 a week. How much GST should I pay? I read a few guides and they make me more confused.


Here is an overview of my last weeks earnings (as received from Uber):


Trip Earnings: $314.45

  • Fare: $384.26
  • Cancellation: +$10
  • Booking Fee and other contributions (deduction): -$14.85
  • Booking Fee and other contributions (payment): +$14.85
  • Surge: +$8.89
  • Uber Fee: -$88.70
Total Payout: $314.45


I received $314.45 on my bank. Should I pay GST on this amount?


My understanding is:

  • GST Inclusive Income: $314.45
  • GST: $314.45/11 = $28.56
  • Net Income: $314.45 - $28.56 = $285.89

Please help.


Regards


Farhan
 

UberDriverAU

Well-Known Member
My understanding is:

  • GST Inclusive Income: $314.45
  • GST: $314.45/11 = $28.56
  • Net Income: $314.45 - $28.56 = $285.89
No. It's: (Fares + Cancellation + Booking Fee And Other Contributions (Payment) + Surge + Tolls) / 11. Basically whatever the customer pays divided by 11.
 

andyxc

Well-Known Member
No

  • Fare: $384.26
  • Cancellation: +$10
  • Booking Fee and other contributions (deduction): -$14.85
  • Booking Fee and other contributions (payment): +$14.85
  • Surge: +$8.89
  • Uber Fee: -$88.70
Total Revenue (Ex GST) $380
GST Payable to ATO $38

You should be getting $0.05 from Uber to pay for the GST on booking fee though. Not sure why it isn't there
 
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andyxc

Well-Known Member
looks like he's a 20% ant with no ABN declared

Then

Total Revenue (Ex GST) $380
GST Payable to ATO $38

GST Receivable $8.06
 
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Where to Mister?

Well-Known Member
You need to get an ABN and register for GST.
Then all gross income is subject to GST, that is, Fares, Cancellations & Surges.
You declare this at G1 on your BAS return. You can ignore the rest of the payments as these are just pass-through payments that you never see. (If you are one of the few who do declare/claim these, you will find that it’s just a paperwork exercise that records money in and money out with no net change to your own circumstances.)
Then, you declare the GST on the income at 1A, which is 1/11th of the income. And to this the 5c per trip that Uber pays you as the GST component of the booking fee (Tax on Fee).
Also, you claim input credits at 1B on the GST you paid for your purchases, such as fuel, lease payments, services, phone payments etc.
Take 1B from 1A and that is what you owe the Tax Office. They will send you a bill.

So,
G1 = $413.15
1A = $37.56
1B = ?

You do this quarterly.

If you havent been keeping records or paying GST since August 2015, then you should probably pay an accountant to sort out the mess for you before the pain starts.
 
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andyxc

Well-Known Member
You declare this at G1 on your BAS return. You can ignore the rest of the payments as these are just pass-through payments that you never see. (If you are one of the few who do declare/claim these, you will find that it’s just a paperwork exercise that records money in and money out with no net change to your own circumstances.)

Not true. Tolls and booking fees have to be included in G1 as you have collected GST from the customer for the Tolls and Booking fees as well.

e.g If you didn't declare Tolls in G1 and the GST component collected from the customer is not calculated in 1A and you put in the GST input credit for Tolls in 1B. You are pocketing the GST you have collected from the customer on behalf of ATO
 

Where to Mister?

Well-Known Member
Only if there are tolls included in Uber’s payment to you, and there weren’t any in the OP’s post. (I don’t see these myself, as we don’t have tolls in SA).
For amounts in the Booking Fee and other contributions line, the same amount paid is deducted, including GST.
As I said, you can make this complicated by splitting off the amounts, declaring them and the GST components, then claiming input GST credits and income tax deductions - but the net effect is zero.
The only (clumsy) difference is the booking fee, for which Uber must charge GST. They don’t want to pay this themselves, so they pay it to you so that you can pass it on to the ATO.
 

FarhanZafraf

New Member
My understanding is:

  • GST Inclusive Income: $314.45
  • GST: $314.45/11 = $28.56
  • Net Income: $314.45 - $28.56 = $285.89


I have been lodging my BAS returns like this. Do I need to amend my returns now? Or should I wait for ATO to say something?

I have asked the same question to ATO Community as well. Lets see what they say.
 

Where to Mister?

Well-Known Member
You should amend your returns. The ATO has automatic data matching systems that will eventually detect the anomaly. If you give the ATO a call and explain your issue they will help you through it. They are, in fact, very helpful and would rather help people do the right thing than punish them.
 

andyxc

Well-Known Member
You can either

1.) amend all your BAS/Tax Returns and work out a payment plan with the ATO for the debt owed.
2.)start doing it the correct way and hope for the next 6 years they don't find you
3.)keep doing what you are doing and hope they don't find you
 

Jordan23

Well-Known Member
I had a chat with a friend of mine who happens to be an ant. When talking to him about how it sucks that we had to pay gst for an amount that we never saw he said I was wrong about how I calculated gst. I said then tell me how you you do it.

He says that his accountant asked how much he made, deducted his expenses then took 10% off the remainder and said that's your gst debt. :confused:
 

UberDriverAU

Well-Known Member
He says that his accountant asked how much he made, deducted his expenses then took 10% off the remainder and said that's your gst debt. :confused:
That'll roughly work out to your Net GST if you haven't supplied your ABN to Uber and they're required to pay GST.
 

rjch

Active Member
Total Revenue (Ex GST) $380
GST Payable to ATO $38

Incorrect. The GST payable is the total revenue divided by 11. Therefore, GST payable is $34. (you don't include cents when declaring or paying tax)

By the sounds of it, the best suggestion is to find a decent accountant that knows the rideshare industry and can advise you what to do.
 

UberDriverAU

Well-Known Member
Incorrect. The GST payable is the total revenue divided by 11. Therefore, GST payable is $34. (you don't include cents when declaring or paying tax)

By the sounds of it, the best suggestion is to find a decent accountant that knows the rideshare industry and can advise you what to do.
Note that he lists revenue excluding GST. GST payable is indeed 1/10th of that amount. Total revenue including GST is $418, and 1/11th of that is also $38.
 

andyxc

Well-Known Member
Incorrect. The GST payable is the total revenue divided by 11. Therefore, GST payable is $34. (you don't include cents when declaring or paying tax)

My amount is Ex GST. GST would be 10% of the Ex GST Amount
 

yogi bear

Well-Known Member
Depends, if you're going to be leaving the country permanently with in a couple of years then don't pay any, other wise pay it on the full amount including ubers cut.
 

rjch

Active Member
Note that he lists revenue excluding GST. GST payable is indeed 1/10th of that amount. Total revenue including GST is $418, and 1/11th of that is also $38.

My amount is Ex GST. GST would be 10% of the Ex GST Amount

I stand corrected. However I still stand by my advice to contact an accountant who has some experience in the rideshare industry, though any accountant worth their salt would be better than none. Until you have the experience to deal with this stuff, it's too easy to screw things up - plus using an accountant will ensure you get the maximum legal rebate on your taxes too.
 
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