The .55c Fee and BAS

I know this has been discussed many times, I took a few weeks off trying to clear my head from all the confusion with Tax and Bas etc. Came back and have seem to forgot how to handle this fee when lodging my BAS.

Last week the postman delivered me a nice letter from the ATO, followed by a call from them, basically stating I have to lodge my 4th quarter BAS or we will fine you (I also like how they mentioned one company did jail time for not declaring etc)

So, I've recorded all my GST on my fuel and car related expenses etc.
I did give my ABN to uber but I think that was after the 4th Quarter.
There seems to be about $100 in booking Fees according to my books ( assuming this is the 55c fee)
So Does that mean I can claim $100 as a credit off the GST I owe?
 

MyRedUber

Well-Known Member
To be technically correct, you should probably declare the 55c income, claim the 55c back as an expense, and record and remit the 5c GST. Because the income and cost are the same it will have no effect on your taxable income. It would only make a difference to your total revenue / turnover, if that's of interest in your total business reporting.

For your BAS reporting, include the 55c for each booking in your G1 - Total Sales and again in G11 - Non-Capital Purchases as an Uber Fee. Total effect is zero, but it needs to be reported because it's been passed into and out of your account with Uber.
Add the 5c (GST on the Booking Fee) for each booking on top of GST on fares to A1 - GST on Sales.
 

Instyle

Well-Known Member
Moderator
$0.55 Booking Fee - Declare $0.50 income, $0.05 GST payable
$0.05 GST on booking fee (paid to driver from Uber) - Declare $0.05 as GST free sales
 

UberDriverAU

Well-Known Member
You received $0.05 direct from an oversea entity Uber BV which is not subject to GST such as the referral bonus.
You still didn't say what was sold. It's a simple question that should have a simple answer. Yes, you notionally received money after they took money from you. The net and real effect is they took slightly less money from you. If I transfer 5 cents into your bank account, would you record that as a sale and include it on your BAS and tax return? If yes, why? If no, why not?
 

UberDriverAU

Well-Known Member
I know this has been discussed many times, I took a few weeks off trying to clear my head from all the confusion with Tax and Bas etc. Came back and have seem to forgot how to handle this fee when lodging my BAS.

Last week the postman delivered me a nice letter from the ATO, followed by a call from them, basically stating I have to lodge my 4th quarter BAS or we will fine you (I also like how they mentioned one company did jail time for not declaring etc)

So, I've recorded all my GST on my fuel and car related expenses etc.
I did give my ABN to uber but I think that was after the 4th Quarter.
There seems to be about $100 in booking Fees according to my books ( assuming this is the 55c fee)
So Does that mean I can claim $100 as a credit off the GST I owe?
As you have provided your ABN and GST details, I would account for the booking fee as follows:

Booking Fee (Payment)
For BAS purposes, $0.55 gets included in G1 - Total Sales, and $0.05 gets included at 1A - GST on Sales.
For income tax purposes, $0.50 is assessable income.

This part is uncontroversial, and I've not seen anyone suggest that this part should be handled differently.

Booking Fee (Deduction) & Booking Fee (GST Amount)
This is where people offer various opinions about how things should be accounted for. Personally I would do the following:

For BAS purposes, $0.50 gets included in G14 - Purchases without GST in the price.
For income tax purposes, $0.50 is an allowable deduction.

I think you should disregard any statement to include "Booking Fee (GST Amount)" on your BAS under sales because the $0.05 amount is not a sale of anything. You didn't provide Uber with goods or services so this amount is not properly characterised as income.

Important Note to Others
How you account for the booking fee is different if you have not provided your ABN and GST details, because Uber is then obligated to pay GST on all of their fees and you can then claim GST credits on their fees.
 

MyRedUber

Well-Known Member
You received $0.05 direct from an oversea entity Uber BV which is not subject to GST such as the referral bonus.
No. You received 5c gst from your passenger.
For tax purposes, there's no difference between the $2.50 Base Fare, which includes GST, and the $0.55 Booking Fee, which also includes GST.

The full payment from your passenger is subject to GST, being 1/11th of their total payment.
Uber take a Commission and they also take a Booking Fee. Both of these are treated as costs, Non-Capital Purchases.
 

UberDriverAU

Well-Known Member
No. You received 5c gst from your passenger.
For tax purposes, there's no difference between the $2.50 Base Fare, which includes GST, and the $0.55 Booking Fee, which also includes GST.
The 5 cents he's referring to is the "Booking Fee (GST Amount)" line that is present when you have provided your ABN and GST details. It's Uber's silly way of taking 50 cents rather than 55 cents.
Uber take a Commission and they also take a Booking Fee. Both of these are treated as costs, Non-Capital Purchases.
True if you're still using the Full Reporting method, but the new Simpler BAS Reporting method (available from 1st of July 2017) only requires labels G1, 1A, and 1B. Uber's fees are also GST free if you have provided your ABN and GST details. If you're using the worksheet to calculate BAS figures then you'd also include the fees at G14 which will reduce the amount at 1B.
 

MyRedUber

Well-Known Member
The fees that we pay to Uber have always been "GST-free". The Uber that we deal with is not an Australian company.
The customer pays the fare, the booking fee, any surge, any tolls, and any other charges, and that full payment includes GST.
We can claim a reduction in our GST liability for the GST component of any payment that we make in support of our business, if that payment included GST. All of the fees that we pay to Uber do not include GST.
 

Instyle

Well-Known Member
Moderator
It's Uber's silly way of taking 50 cents rather than 55 cents
If you have a look at the fare break down, the customer is charged;
$0.55 booking fee (understood to be inclusive of GST, under the taxi travel clause).
Uber then deduct the full $0.55 value for themselve (not $0.50)
Uber then credit you on a seperate line a misc payment of $0.05 (to account for the $0.05 you have to pay in GST)
 

UberDriverAU

Well-Known Member
The fees that we pay to Uber have always been "GST-free". The Uber that we deal with is not an Australian company. All of the fees that we pay to Uber do not include GST.
That used to be true, but as of the 1st of July 2017 Uber was required to pay GST on all fees unless their "customer" provided a valid ABN and advised they were registered for GST. That's how the "Netflix Tax" amendments to the GST law works.
If you have a look at the fare break down, the customer is charged;
$0.55 booking fee (understood to be inclusive of GST, under the taxi travel clause).
Uber then deduct the full $0.55 value for themselve (not $0.50)
Uber then credit you on a seperate line a misc payment of $0.05 (to account for the $0.05 you have to pay in GST)
If I put in 20 L of fuel at a Caltex Woolworths servo for $1.04/L but pull out my Woolies card and get a $0.04/L discount, how much will I pay? I will pay exactly $20 for the fuel. I won't have paid $20.80 and then got $0.80 back. I don't need to declare the $0.80 as income or include it on my BAS because it's not income as I've done nothing to earn it. It's simply a reduction in the fuel expense. Exactly the same principle applies to the $0.05 "GST Amount". It's a reduction in the amount of the booking fee that they take. A discount is often shown on a separate line too.

Again, I challenge you to offer an explanation for why the $0.05 is income. What does a driver do that sees them earn $0.05 on every transaction?
 

Instyle

Well-Known Member
Moderator
If I put in 20 L of fuel at a Caltex Woolworths servo for $1.04/L but pull out my Woolies card and get a $0.04/L discount, how much will I pay? I will pay exactly $20 for the fuel. I won't have paid $20.80 and then got $0.80 back. I don't need to declare the $0.80 as income or include it on my BAS because it's not income as I've done nothing to earn it. It's simply a reduction in the fuel expense. Exactly the same principle applies to the $0.05 "GST Amount". It's a reduction in the amount of the booking fee that they take. A discount is often shown on a separate line too.
Paying for fuel is the other side of the transaction and not entirely relevant to the Uber Booking Fee, however Woolworths Petrol would declare they charged you a $18.18 ex with a GST amount of $1.82.

The additional Uber $0.05 is the direct opposite of a discount, they are physically giving you $0.05 as goodwill because they know charging the customer $0.55 through the driver incurs $0.05 GST liability.

Are you saying drivers shouldn't declare their sign on bonus as income as they did nothing to earn it?

Personally and for other reading, it's best not to supply Uber with an ABN and just credit the GST they MUST charge you in all of their fees. Avoiding the confusion of the booking fee GST amount.
 

UberDriverAU

Well-Known Member
The additional Uber $0.05 is the direct opposite of a discount, they are physically giving you $0.05 as goodwill because they know charging the customer $0.55 through the driver incurs $0.05 GST liability.
The net effect is what's relevant, and the net effect is that they take $0.50 rather than $0.55. You don't get the amount back at a later time, which would make it a refund rather than discount.
Are you saying drivers shouldn't declare their sign on bonus as income as they did nothing to earn it?
Of course it's income. You have to sign up and drive to get it!
 

Instyle

Well-Known Member
Moderator
The net effect is what's relevant, and the net effect is that they take $0.50 rather than $0.55. You don't get the amount back at a later time, which would make it a refund rather than discount.

Of course it's income. You have to sign up and drive to get it!
TBH theres not much of a difference, I get what your saying, however if Uber only deducted $0.50 in one single line transaction instead of separately itemising the full - $0.55 deduction and then another line with + $0.05. The way it's displayed in the payout summary indicates what I'm saying.

You could argue either way really, if the ATO ever pulled up on it I suppose the key would be consistency, whichever approach a driver takes, just stick with it until officially advised otherwise.
 

UberDriverAU

Well-Known Member
TBH theres not much of a difference, I get what your saying, however if Uber only deducted $0.50 in one single line transaction instead of separately itemising the full - $0.55 deduction and then another line with + $0.05. The way it's displayed in the payout summary indicates what I'm saying.
If you wanted to account for both lines on the trip summary then in accounting terms you could setup an expense account for the $0.55 "deduction" and a contra expense account for the $0.05 "GST Amount". A contra expense is a payment received that is not revenue, ie. because it is contingent upon having paid an expense first and it's a simple reimbursement of part of your initial payment. You will never ever see the +$0.05 without the -$0.55.
 
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