GST and QST Return – Drivers Who Carry On Other Commercial Activities

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Under the agreements with us, transportation system operators (such as Uber and Eva) must collect the GST and QST on services you provide through their platform and remit the taxes on your behalf at the rates established in the agreements.

Important: Even if the operator remits the tax amounts to us on your behalf, you must still file a GST and QST return.

However, in some situations, you may have to make an adjustment and remit additional amounts respecting these services when filing your tax return.

Filing your GST and QST return

Certain rules apply regardless of whether or not you have elected to use the Quick Method of Accounting to calculate the taxes respecting your business activities.

If you use the Quick Method of Accounting

For each reporting period, you must report:

  • the value of the services rendered as a driver related to a transportation system operator under agreement (such as Uber or Eva);
  • the value of the supplies you made in the course of your other commercial activities; and
  • the GST and QST to remit respecting all your activities using the Quick Method of Accounting rates.

If you use the Quick Method of Accounting to calculate the taxes in respect of all your commercial activities, you cannot claim input tax credits (ITCs) or input tax refunds (ITRs) for most of your business expenses (fuel and telephone service costs, for example). The rates for this method already take such expenses into account.

However, you can claim ITCs and ITRs for capital expenses, such as the purchase of an automobile or a smart phone to be used primarily for your commercial activities.

For help with filing your GST and QST return, see document MR-9.PC.2-V, Information for Drivers Related to a Transportation System Operator Under Agreement Who Carry On Other Commercial Activities and Who Have Elected to Use the Quick Method of Accounting.

Adjustment

The transportation service operator under agreement remits on your behalf the taxes on services you provide using the operator's platform. The taxes are calculated at the rates established in the agreements and always take into account the 1% credit you are entitled to if you use the Quick Method of Accounting.

Each fiscal year, the credit is applied on the first $28,571 in taxable sales, which equals:

  • $30,000 including GST;
  • $31,421 including QST.

Consequently, if your sales exceed this amount in a given fiscal year, you must make an adjustment when filing your GST and QST return respecting services rendered as a driver related to a transportation system operator under agreement.

Example

Rina is a self-employed translator. She also operates a taxi business whereby she occasionally drives for a transportation system operator under agreement. She files an annual GST and QST return.

In the fiscal year, Rina earned $52,500 (not including GST and QST) in total income ($45,500 as a translator and $7,000 as a driver for an operator), which equals:

  • $55,125.00 including GST;
  • $57,736.88 including QST.

Since Rina's income exceeds the limit for the 1% credit, she must calculate an adjustment and remit additional GST and QST amounts to us.

GST balance to remit 
GST to remit according to the rate used in the Quick Method of Accounting $55,125.00 x 3.6% $1,984.50
Maximum 1% credit under the GST system $30,000.00 x 1% -$300.00
GST to report on line 105 of the return $1,684.50
GST amount remitted by the operator $7,000.00 x 2.73% -$191.10
GST balance to remit  $1,493.40
QST amount to remit 
QST to remit according to the rate used in the Quick Method of Accounting $57,736.88 x 6.6% $3,810.63
Maximum 1% credit under the QST system $31,421.00 x 1% -$314.21
QST to report on line 203 of the  return $3,496.42
QST amount remitted by the operator $7,000.00 x 6.16% -$431.20
QST balance to remit  $3,065.22
If you do not use the Quick Method of Accounting

If you elect not to use the Quick Method of Accounting to calculate the taxes respecting your activities, you must still apply the GST and QST rules to all your commercial activities (your activities as a driver for the operator and your other activities).  

Consequently, for each period covered, you must report your total supplies, including services rendered as a driver related to a transportation system operator under agreement (such as Uber or Eva), as well as:

  • the total GST collected or collectible, calculated at the regular 5% rate on all your activities;
  • the total QST collected or collectible, calculated at the regular 9.975% rate on all your activities;

You must then subtract from the net tax amount the tax amounts that the operator remitted to us on your behalf and remit the difference to us.

For help completing your GST and QST return, see document MR-9.PC.3-V, Information for Drivers Related to a Transportation System Operator Under Agreement Who Carry On Other Commercial Activities and Who Have Elected Not to Use the Quick Method of Accounting.

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