Why does Uber charge the driver 20% of the HST

TopCat

Member
When I look at the fare report on the app after the trip is completed it looks like Uber is charging the driver 20 percent of the HST and keeping it for themselves.

For instance at the top of the fare report page on the app in bold it shows $41.88. The fare it shows below that is $44.65. Below that it shows Uber fee $8.93. Below that it shows HST $6.16.

Now the $41.88 in bold at the top of the page is not my actual payout because the HST has to be subtracted. The actual payout is only $41.88 - $6.16 = $35.72. So Uber should be taking 20 percent of the $35.72 not 20 percent of the $44.65.

To calculate the HST you have to add the $2.75 booking fee to the $44.65. That gives you $47.40. Then you have to multiple $47.40 by $0.13 and that comes out to $6.16.

Actionjax can you explain this?
 

Attachments

  • Screenshot_20170925-023340.png
    Screenshot_20170925-023340.png
    42.2 KB · Views: 75
Last edited:

Actionjax

Well-Known Member
Check the calculation again. Uber adds the HST to the $44.65 not subtracts it. So the 20% of the fare is accurate. You also pay and are paid the HST on the booking fee.
 

UberxGTA

Well-Known Member
When I look at the fare report on the app after the trip is completed it looks like Uber is charging the driver 20 percent of the HST and keeping it for themselves.

For instance at the top of the fare report page on the app in bold it shows $41.88. The fare it shows below that is $44.65. Below that it shows Uber fee $8.93. Below that it shows HST $6.16.

Now the $41.88 in bold at the top of the page is not my actual payout because the HST has to be subtracted. The actual payout is only $41.88 - $6.16 = $35.72. So Uber should be taking 20 percent of the $35.72 not 20 percent of the $44.65.

To calculate the HST you have to add the $2.75 booking fee to the $44.65. That gives you $47.40. Then you have to multiple $47.40 by $0.13 and that comes out to $6.16.

Actionjax can you explain this?
Hst is charged on the total fare (including Uber's%) and the booking fee.
you answered your own question.
 

Mulligan

New Member
Since it looks like uber is charging HST on their portion they take from the drivers..where is uber's HST number. I can't find it anywhere..also it is now obvious that uber is doing business in Canada since they are charging HST on their fees.. So should they not now start to pay their fair share of corporate taxes in Canada..
 

Actionjax

Well-Known Member
Since it looks like uber is charging HST on their portion they take from the drivers..where is uber's HST number. I can't find it anywhere..also it is now obvious that uber is doing business in Canada since they are charging HST on their fees.. So should they not now start to pay their fair share of corporate taxes in Canada..
It does not matter who pays it to CRA. Long as it’s collected and remitted. The way it is now benefits drivers more if they talk to an accountant.
 

RockD

Active Member
Since it looks like uber is charging HST on their portion they take from the drivers..where is uber's HST number. I can't find it anywhere..also it is now obvious that uber is doing business in Canada since they are charging HST on their fees.. So should they not now start to pay their fair share of corporate taxes in Canada..

As mentioned plenty of times in this forum, as per the agreement you signed when you joined Uber as a driver, the theory is: You (driver) charge the gross fare (including booking fees, etc.) to the riders. You are responsible to collect HST on that amount (which is the highest possible amount you can think of when looking at all the fees and even upfront pricing - i.e., the total amount paid by the rider for the rides (before HST) - potentially, there could be an exception for tolls reimbursement but I don't think that there is a clear answer yet). Based on the agreement (not tested in courts yet...) Uber is only your "agent" when dealing with the riders.

Uber then charges you (the drivers) a "service fee" and deducts other amounts (e.g., booking fee) when making the payments to you. Uber does not currently charges HST to the drivers on the service fee and on the other amounts deducted from your pay.
 
Last edited:
Top