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GST and QST Return – Drivers Who Do Not Carry On Other Commercial Activities

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.

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

In addition, in some situations, you may have to remit additional amounts directly to us when filing your tax return.  

Filing your GST and QST return

You must file a GST and QST return for each reporting period, according to the frequency assigned to you upon registration. In the return, you must report the value of the services you rendered as a driver related to a transportation system operator under agreement as well as the GST and QST payable on the services.

To calculate your net tax, you can elect to use the Quick Method of Accounting.

Important

If you accept the conditions for using the Register for the GST/HST and QST – Drivers for a Transportation System Operator Under Agreement online service, you must file an annual return online for a fiscal year ending on December 31.

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Electing to use the Quick Method of Accounting

You can elect to use the Quick Method of Accounting to calculate your net tax. It simplifies the way you calculate the taxes to be remitted to us.

The 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 phone 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).

If you want to use the Quick Method of Accounting, you must make an election in one of three ways:

For more information, see The Quick Method of Accounting for Calculating GST and QST Remittances.

Note

For help completing your GST and QST return, see document MR 9.PC.1-V, Information for Drivers Related to a Transportation System Operator Under Agreement Who Carry On Commercial Activities Only With This System Operator and Who Have Elected to Use the Quick Method of Accounting.

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Remitting additional amounts

The transportation system operator under agreement (such as Uber) remits on your behalf the tax amounts calculated at the rates established in the agreements. These rates take into account the 1% credit you are entitled to under 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 remit additional amounts when filing your GST and QST return.

Example

Rolando is a driver related to a transportation system operator under agreement. He carries on no commercial activities other than his taxi business. Like most drivers in his situation, he files a GST and QST return annually.

In the course of the fiscal year, Rolando's taxable sales reached $33,500 before taxes, which equals:

  • $35,175.00 including GST;
  • $36,841.63 including QST.

Since Rolando's taxable sales exceed the limit for the 1% credit, he must calculate additional GST and QST amounts and remit them to us.

Additional GST amount to remit
GST to remit according to the rate used in the Quick Method of Accounting $35,175.00 x 3.6% $1,266.30
Maximum 1% credit under the GST system $30,000.00 x 1% -$300.00
GST to report on line 105 of the return $966.30
GST amount remitted by the operator $33,500 x 2.73% -$914.55
Additional GST amount to remit $51.75
Additional QST amount to remit
QST to remit according to the rate used in the Quick Method of Accounting $36,841.63 x 6.6% $2,431.55
Maximum 1% credit under the QST system $31,421 x 1% -$314.21
QST to report on line 205 of the return $2,117.34
QST amount remitted by the operator $33,500 x 6.16% -$2,063.60
Additional QST amount to remit $53.74

If you do not use the Quick Method of Accounting

If you do not use the Quick Method of Accounting, you must, for each reporting period, report all the taxes collected on your behalf on the services you rendered as a driver related to a transportation service operator under agreement (such as Uber). Taxes must be collected at the regular rate of 5% for the GST and 9.975% for the QST.

You must then deduct:

  • the taxes you paid or should have paid in the reporting period on your eligible expenses giving entitlement to an input tax credit (ITC) and an input tax refund (ITR);
  • the GST and QST amounts the operator remitted to us on your behalf at the rates established in the agreements.  
Note

You are only entitled to the 1% credit if you you use the Quick Method of Accounting.  

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