Home food deliveries through facilitators such as UberEATS are becoming increasingly popular. It’s quite common for these delivery drivers to also be Uber drivers. We now examine the GST and ABN registration obligations for individuals operating in these industries.
Uber drivers (or those operating for other ride-sharing facilitators) must register for GST as soon as they commence working, irrespective of their level of turnover. While normally you are only required to register for GST when your annual turnover reaches $75 000, in February 2017 the Federal Court ruled that ride-sharing is a “taxi service”. Consequently, GST registration is compulsory regardless of the level of turnover.
On the other hand, home food delivery drivers operating through facilitators such as UberEATS are not required to register for GST unless their turnover is $75 000 or more. UberEATS should not be confused with Uber! The food delivery drivers are not providing a “taxi service” as there is no passenger. Therefore there is no requirement to register for GST unless their turnover reaches the registration threshold ($75 000).
Individuals who are both Uber drivers and food delivery drivers for facilitators such as UberEATS must register for GST as soon as they commence driving for Uber. Consequently, as they are registered for GST, they can claim the GST component of any expenses (car registration, servicing, depreciation etc.) incurred while driving for Uber and while driving for UberEATS or other food delivery facilitators. However, these GST claims must be apportioned to take account of any private use of the vehicle.
If you are registered for GST, you must pay GST on your delivery service in addition to your ride-sourcing service.
UberEATS drivers are broadly deemed not to be employees. Employees are not entitled to an ABN as they are not carrying on an enterprise. As they are not employees, UberEATS drivers will be deemed to be carrying on an enterprise and must register for an ABN. Drivers may be asked to supply their ABN to their facilitator. Also, because the drivers are not classed as employees, they are not entitled to superannuation or other benefits such as paid leave.
Likewise, Uber drivers must apply for an ABN as they too are deemed to be carrying on an enterprise.
Source: Australian Bookkeepers Network