Drivers Related to a Transportation System Operator Under Agreement Who Do Not Carry On Other Commercial Activities
If you are a driver related to a transportation system operator under agreement, such as Uber, you operate a taxi business and you carry on no other commercial activities, you must meet the following requirements respecting the GST and QST.
You must be registered for the GST and QST before making your first trip.
Use our Register for the GST/HST and QST – Drivers for a Transportation System Operator Under Agreement online service to quickly register for the taxes in a few easy steps.
You can use our registration service for drivers related to an operator to also request that we open your operator file for mandatory billing in the remunerated passenger transportation sector.
For more information, see Mandatory Billing in the Remunerated Passenger Transportation Sector.
To use the Register for the GST/HST and QST – Drivers for a Transportation System Operator Under Agreement online service, you must meet the conditions below.
You must make an election to use the Quick Method of Accounting to calculate your net tax.
The Quick Method of Accounting simplifies the way you calculate the taxes to be remitted to us. Your transportation system operator (Uber, for example) collects the GST/HST and QST on your fares and remits to us the taxes calculated at the rates established in the agreements (2.73% for the GST and 6.16% for the QST).
You cannot claim input tax credits (ITCs) and input tax refunds (ITRs) for most of your business operating expenses, such as fuel and telephone services, because the rates used in this method take these things into account. However, you will be able to claim ITCs and ITRs respecting certain capital purchases (such as a smartphone or automobile you purchased and use mainly for commercial activities).
For more information, see The Quick Method of Accounting for Calculating GST and QST Remittances.
You must record your income and expenses based on a fiscal year ending on December 31.
You must file an annual GST/HST and QST return based on a reporting period ending on December 31.
You must accept to file your annual GST and QST return online.
You will receive an email reminding you to file your annual GST/HST and QST return.
If you cannot meet these conditions, see How to Register for the GST and QST for more ways to register.
To track the status of your application, you can use the Track a Registration Application: New Businesses service if you registered through the Register for the GST/HST and QST – Drivers for a Transportation System Operator Under Agreement service.
Under the agreements with us, transportation system operators (such as Uber) 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.
However, in some situations, you may have to remit additional amounts directly to us when filing your tax return.
If you receive form FPZ-558-V, GST/HST and QST Instalments, contact us.