Additional information about the changes to your Service Agreement
1 November 2018 / New Zealand
We recently reached out to let you know that from 1 December 2018, driver partners will contract with an entity based here in New Zealand [Rasier New Zealand Limited] for Uber Services. According to our records, you are registered for GST and the below information applies to you. If this is incorrect, or your GST status has changed, please contact Uber support immediately and ignore the below.
These changes are summarised below:
What this means for you
- GST will be applied to Uber service fees on your invoice. You are GST registered, which means you should be able to claim an input credit for the GST charged on these fees.
- Your Service Fee before GST will change from 25% to 24.35%: This means your Service Fee will be 28% once GST is added, and you should be able to claim the GST as an input credit.
- New agreement. To continue using the Uber app after 1 December, you will be required to accept a new agreement in-app reflecting the new Uber entity (Rasier New Zealand Limited).
What does this look like in practice?
To help illustrate the change, we have set out an example below of how this change would normally impact a driver partner who has confirmed that he or she is registered for GST. This example is based on a $100 Total Fare for a partner who currently receives a 25% Service Fee. To keep the example simple, any other fees that may apply (such as the Booking Fee) have been excluded:
| BEFORE 1 December 2018 | FROM 1 December 2018 | |||
| Trip Breakdown | ||||
| Total Fare | $100.00 | Total Fare | $100.00 | |
| Uber Service Fee (inc GST) | -$25.00 | Service Fee (ex GST) | -$24.35 | |
| GST on Service Fee | $0.00 | GST on Service Fee | -$3.65 | |
| Driver Net Revenuea | $75.00 | Driver Payouta | $72.00 | |
| GST Return | ||||
| Driver Gross GST Liabilityb | $13.04 | Driver Gross GST Liabilityb | $13.04 | |
| Driver GST Input Credit | $0.00 | Driver GST Input Credit | -$3.65 | |
| Driver Net GST Liabilityc | $13.04 | Driver Net GST Liabilityc | $9.29 | |
| Driver Outcome | $61.96 | Driver Outcome | $62.61 | |
a The total amount received after the Service Fee is deducted.
b As the Total Fare includes GST, the GST amount is $13.04
c The net GST liability payable to the Inland Revenue Department (after reporting GST on the Total Fare and claiming a GST credit on the Service Fee).
Frequently Asked Questions
It’s understandable that you might have questions about this change, and how it impacts your circumstances as an individual. We’ve included an FAQ below to provide more clarity around any questions you might have.
- Where will I see this change reflected?
- Where can I access GST information for my account?
- In which payment statement can I expect these changes?
- Can you outline the exact fees and charges I’d be able to claim back GST on aside from the service fee?
- How can I claim a GST input credit?
- How do I sign the new Service Agreement?
- Where can I receive more information about my personal tax obligations?
- Don’t see an answer to your question?
Posted by Uber
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