HST needs to be added and paid by riders not drivers!!!

TdotUber

Active Member
HST is a huge expense for the drivers here in Toronto (Ontario) who does this full time and also for part timers who's income is over 30k... Part timers don't realize if their "overall" annual income is more than 30k combined from any sources (self employed to say the least), they need to start paying HST when time comes... Correct me if I'm wrong...

As an example, if a drivers overall gross annual income through uber is $50k which is directly deposited to the bank account, it's 13% HST alone is $6,500 minus expense that we can claim as "independent contractors." Then on top we got our income tax bracket and all other related expense...

From riders perspective if a single trips total is $10 as an example, their total with the HST that uber needs to collect from riders will only bring the total to $11.30... Riders don't take anywhere close to the trips drivers do every year...

Hope we can have a grounded conversation on this topic and bring this to either uber's or media's attention... Since ride sharing is fully legalized these are not much of a demand from drivers but things that buyers already are aware of and comfortable paying to use of a service in Ontario...

Keep grinding...
 

mp968

Active Member
Check your profile page on partners.uber and you will find the "HST number" field there.
My guess is that if you provide valid HST number, fares will be adjusted to reflect the HST. Also, the Uber share should be calculated on a net fare (before HST).
 

One Star

Well-Known Member
Yep, you should be treating it as the HST is included in the gross fare for now.
That means when you calculate the fare, your actual income would be: Gross Fare -HST - TNC's commision = your net income.

Warning! for all those who think you can escape remitting HST because you are only doing it part time, I think that is going to came back and bite you in the ass big time.

According to the CRA, all taxi and limos regardless of the $30000 threshold are required to charge HST and as far as taxis go, is included in the metered rate.

I am not a tax expert by any means, but in the event of a CRA audit I would be willing to bet you would be treated the same way. You really should bite the bullet and remit it now (and take advantage of the credits for HST paid out on on your expenses), before it costs you penalty and interest down the road. Also if I'm not mistaken, you can only claim HST credits for the previous two years, so if audited not only would you be required to remit all HST, you would not get full credit for all your HST paid out on expenses if the audit goes back more than two years.

I think the quote from the mechanic on the old Fram filter commercial is sage advice here:

"You can pay me now, or you can pay me (a lot more) later"!
 

One Star

Well-Known Member
Because HST is not added to the gross fare by Uber, if you calculate your income the way I've described above, it means that Uber's cut is actually more than 25%.

Looks like they are gouging the driver the same as a regular taxi operation. :rolleyes:
 

Karem

Well-Known Member
Sorry guys I'm so ignorant of tax issues. The way I see it you pay HST that you collect from client and pay them to revenue Canada. We drivers don't collect HST so how come we pay something we don't collect?
 

Hannibalb

Well-Known Member
Moderator
Sorry guys I'm so ignorant of tax issues. The way I see it you pay HST that you collect from client and pay them to revenue Canada. We drivers don't collect HST so how come we pay something we don't collect?
Welcome to Uberworld glad to see you're finally waking up
 
Sorry guys I'm so ignorant of tax issues. The way I see it you pay HST that you collect from client and pay them to revenue Canada. We drivers don't collect HST so how come we pay something we don't collect?
You are collecting it. It is included in the fare. When CRA come's knocking they will want their pound of flesh. Don't look to uber to pay it either as you are a self employed contractor.
 

TdotUber

Active Member
  • Thread Starter Thread Starter
  • #9
Sorry guys I'm so ignorant of tax issues. The way I see it you pay HST that you collect from client and pay them to revenue Canada. We drivers don't collect HST so how come we pay something we don't collect?
Till now the total fare doesn't include HST which should be added and charged to riders according to the services rules and regulation here in Ontario... Uber simply is putting that burden on each and every driver here not realizing that is a huge % of total fare that drivers are putting out from their pockets...

Uber Canada needs to add HST in the fare and collect it from riders ASAP to make RideSharing as a whole better experience for drivers in ontario...
 
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Karem

Well-Known Member
You are collecting it. It is included in the fare. When CRA come's knocking they will want their pound of flesh. Don't look to uber to pay it either as you are a self employed contractor.
Thanks for your reply. Ok the other question is : does uber send us income statement? If not how I declare my income to revenue Canada? Is my income is the one that goes to my bank account or it is the one before uber cut?
 

TdotUber

Active Member
  • Thread Starter Thread Starter
  • #11
You are collecting it. It is included in the fare. When CRA come's knocking they will want their pound of flesh. Don't look to uber to pay it either as you are a self employed contractor.

It is not included in the fare. Uber simply just don't care at this point in regards to how this impact us drivers at the end of the year who decides to pay up according to Ontario laws...

13% on the total fare is a huge loss from drivers side when we combine our total gross income...

Hopefully they change this soon...
 

Harry70

Well-Known Member
Hst should be collected by uber and mentioned in the fare specifically; it's good for the riders who wants to claim it ; put a burden on uber driver at the year end is highly unfair; uber collect fare they should collect hst as well ; we don't collect hst why should we pay for it :every hst bill in Canada mention hst separately why not uber bill
 

UberxGTA

Well-Known Member
Fact: Uber will do anything to avoid paying taxes.(inc. in the Netherlands)
Fact: CRA policy has not caught up with the TNC/rideshare industry. Only regulated taxi fares and limo services are currently required to submit the HST.
Uber is relying on legal precedent for future arguments regarding this and that argument is 'saying that drivers have been paying so why should they?"
Uber has kicked this can down the road by saying the HST is the drivers' responsibilities. Official CRA or legal ruling has not been made on this subject.
It may require a class action lawsuit by Canadian drivers.
Sidenote: The IRS is looking for $4-5 billion from Facebook for avoiding taxes through Ireland. I can't wait to see the IRS file made public on Uber.
Pay your income taxes on your driver income. The HST is still up in the air, just like the legality of Uber before the City of Toronto regulated and legalised TNC services.
 

momo14

Active Member
11.JPG


Uber already added HST number in your profile. Uber need your HST number, doesn't matter if you drive full time or part time. Every dollar you make, which deposited into your bank, Revenue Canada knows about it. And you have to pay HST on it, Soon or later
 
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TdotUber

Active Member
  • Thread Starter Thread Starter
  • #17
View attachment 52373

Uber already added HST number in your profile. Uber need your HST number, doesn't matter if you drive full time or part time. Every dollar you make, which deposited into your bank, Revenue Canada knows about it. And you have to pay HST on it, Soon or later

I wonder what adding our HST number in our profile going to do... Regardless, I'm still paying this from my pocket since I started... Don't need any issues with the Cra...

Anyone up for a trial run...? Let us now what changes if anything when you add your HST in profile...
 

UberxGTA

Well-Known Member
View attachment 52373

Uber already added HST number in your profile. Uber need your HST number, doesn't matter if you drive full time or part time. Every dollar you make, which deposited into your bank, Revenue Canada knows about it. And you have to pay HST on it, Soon or later
If Uber is an 'honest' company, that space in the profile will be where they post their HST number and Uber will submit the HST that was added to the ride after the fare.
 

UberxGTA

Well-Known Member
You are collecting it. It is included in the fare. When CRA come's knocking they will want their pound of flesh. Don't look to uber to pay it either as you are a self employed contractor.
Firstly, uber is doing the collecting of fares so they should be charging and remitting the HST.
Secondly, there is only regulated taxi fares and limo services mentioned in any CRA websites/policy.
The CRA has not caught up with the rideshare industry just like all the municipalities that are unable to shut Uber down legally because there was no law or regulations pertaining to this industry. The CRA/legal decision regarding this has not been made official.
 

mozart

Member
Hst is payable on self employment income, in this case income from driving for Uber.
Employment income is subject to payroll taxes, not hst.
Totally 2 different incomes, 2 different categories.
Taxes are payable on both incomes.
It is drivers duty to pay hst once $30000 is reached, is it right, no it's not, can one do something about it, I doubt that.
There are more deduction options on self employment income.
Check with your accountant.
 
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