Easy GST for Uber Drivers

Understand Your Tax Obligations and GST Rules in New Zealand

What is GST?

GST (Goods and Services Tax) is a 15% tax applied to most goods and services in New Zealand. If you're driving for Uber, GST is already included in the fares your riders pay. The good news? Uber handles most of the GST work for you!

Who Handles GST?

Starting 1 April 2024, Uber will collect GST from your riders and pay it directly to the government. This means you don’t have to worry about charging GST yourself, whether you’re registered for GST or not.

Your Responsibilities as an Uber Driver

Your GST and tax obligations depend on whether you're registered for GST:

If you’re NOT registered for GST: You don’t need to do anything. Uber will handle everything and even give you a GST credit.
If you’re registered for GST: You still need to file your GST returns, but Uber simplifies the process by charging GST to riders on your behalf.

Examples

Example 1: Non-GST-Registered Driver

Imagine a rider pays $115 for a trip (this includes $100 for the fare + $15 GST). Here’s what happens:

Uber collects $115 from the rider.
Uber sends $15 GST to the government.
Uber gives you back 8.5% of $115 ($9.78) as a GST credit for your expenses.
You keep $100 (minus Uber’s service fees) as your income.
No action is required from you for GST. Uber handles it all!

Example 2: GST-Registered Driver

Imagine a rider pays $115 for a trip (this includes $100 for the fare + $15 GST). Here’s what happens:

Uber collects $115 from the rider.
Uber sends $15 GST to the government.
Uber treats your $100 as GST-free income.
You file your GST return but report the $100 as zero-rated (GST-free).
You can claim back GST on business expenses (e.g., fuel, maintenance).

Key Takeaways

Uber will handle GST for all rides, making your job easier.
If you’re not GST-registered, you don’t need to worry about GST at all.
If you’re GST-registered, Uber simplifies the process, and you can still claim GST on your expenses.