Taxi-Ride-Sourcing.pngATO Provides Advice On Taxi Travel Services Through Ride-sourcing

The ATO has released advice on the tax consequences of a range of collaborative consumption activities, including taxi travel through ride-sourcing (also known as ride-sharing or ride-hailing), provided as part of the ‘sharing economy’.

There is also advice on the provision of accommodation supplies, parking services and making offers to provide goods or services to a consumer.

“The existing tax law applies equally whether a buyer and seller come together at a bricks and mortar business or via a mobile phone app or web site” Deputy Commissioner James O’Halloran said.

The ATO has confirmed that people who provide ride-sourcing services are providing ‘taxi travel’ under the GST law. The existing tax law applies and so drivers are required to register for GST regardless of their turnover.

“Affected drivers must register for GST, charge GST on the full fare, lodge business activity statements and report the income in their tax returns,” Mr O’Halloran said.

“Current drivers that don’t have an ABN and are not registered for GST can easily apply online.

”We understand that people often don’t consider the tax consequences of new and emerging business models. Our first step is to assist taxpayers involved in the sharing economy to meet their tax obligations.”

Recognising that some taxpayers may need to take some corrective actions, the ATO is allowing drivers until 1 August 2015 to get an ABN and register for GST.

For more detailed information on the sharing economy and tax requirements for ride-sourcing, visit ato.gov.au/sharingeconomy