- Tax requirements
- Sales tax
Sales tax in Canada
Requirements for drivers
When you drive with Uber in Canada, the federal government requires that sales tax (HST/GST) be collected on each trip and remitted to the Canadian Revenue Agency (CRA). Learn how this works and what it means for you.
As an Uber partner, you’re an independent contractor. When you work for yourself, you’re responsible to collect, remit, and file your sales tax—HST in Ontario, GST in Alberta and Saskatchewan—on all your ridesharing trips to the Canada Revenue Agency (CRA). If you are a driver in Quebec, Uber will collect and remit your sales tax on your behalf. Check out our Quebec Sales Tax page for more details.
As of July 1, 2017, sales tax requirements changed in Canada. All fares charged by all rideshare partners (drivers like you) are now subject to HST/GST. No matter how much income you earn from ridesharing, this requirement stays the same.
Luckily, HST/GST is already included in every fare your riders pay. So, while you still need to remit HST/GST, it does not impact your take-home earnings. Plus, when you register for an HST/GST number, you may be eligible to claim input tax credits (ITC) back on some of your expenses as a driver.
A tax professional can help you understand how to remit and file your taxes correctly and claim your potential input tax credits. We’re working with TurboTax who can help make filing taxes easier for you.
Collect, remit, file
Do tax season right
1. Register for HST/GST
The Canada Revenue Agency requires every driver to create a GST/HST account number, which must be shared with Uber within 30 days of a first trip. It only takes a few minutes to register online and you’ll have your GST/HST number instantly. Follow the step-by-step instructions to register. Make sure you update your tax profile within this time to avoid having your account temporarily put on hold.
Already have a GST/HST account number? Skip the registration step and update your tax profile directly:
2. Collect HST/GST
Each week, you’ll receive the HST/GST that was collected from your trips. These amounts will be shown on your weekly payment statement from Uber as well as your monthly and annual Tax Summary. Be sure to set that money aside so you’ll have it ready for the CRA when you file your HST/GST return.
3. Remit your HST/GST to the CRA
HST/GST can be remitted quarterly or annually to the CRA—choose which works best for you. It’s fairly simple to make regular payments. You can make your HST/GST payment electronically, by mail, or at your bank. Wondering how much you need to remit? You can find this amount on your monthly and annual Tax Summary.
4. File your HST/GST return
You can file your HST return online with CRA. To file your HST/GST return, you’ll need to know your net tax. Wondering what that is? Great question! Your net tax is the difference between the amount of HST/GST you’ve collected and the amount of HST/GST you’ve paid on expenses related to your ridesharing activities.
Remember, your tax situation is different from everyone else’s. So working with a tax professional can be your best option. They can help file your HST/GST returns so you get the most money back with the least risk of errors.