Tax requirements in New Zealand
As an Uber driver-partner, tax can be tricky! We want to help you understand and meet your tax obligations, but it’s important to note that Uber is unable to provide tax advice and is not responsible for ensuring that you meet your tax obligations. To answer your questions, you can read the information FAQs (Frequently asked questions) below, speak with a tax advisor, or contact Inland Revenue (IR) directly.1
New GST rules effective 1 April 2024
There are new laws in New Zealand that will change the way Goods and Services Tax (GST) is collected for services provided via online marketplaces, including ridesharing. Starting April 1st 2024, Uber will be obligated to collect and remit 15% GST on ridesharing and related services to Inland Revenue (IR). This will apply to all trips, whether you as a driver-partner are GST-registered or not.
If you are GST-registered, there will be changes to how you should complete your GST return under the new GST rules. You may wish to speak to a tax advisor for more information, or refer to the IR website for guidance.
If you are not GST-registered, please note that a flat-rate credit scheme has been introduced under the new GST laws. Of the 15% GST that Uber collects, 6.5% will be remitted to IR, and 8.5% will be credited back to you.
To comply with the new GST laws, it's important that you ensure your personal information and your GST registration status is kept up-to-date at all times. Please refer to the section "How to update your tax details" below for guidance.
Please note that you are required by law to provide this information, and IR may impose penalties2 under certain circumstances if you fail to do so.
IRD and GST registration
In New Zealand, you may need to register for GST if your turnover exceeds, or is expected to exceed $60,000 in a 12 month period. In relation to providing transportation services to riders using the Uber app, turnover may include the total amount of fares for all trips you complete, as well as any incentives, referrals, or other payments. It is important for you to provide confirmation that you are registered for GST on your profile at partners.uber.com as well as any information about your GST status.
See below for steps on how to update your Uber profile settings if you are GST registered.
1 Every driver-partner is unique and so are their specific tax circumstances. As such, the information on this page may not cover your tax needs and it should not be relied upon to replace you seeking independent tax advice. Uber can’t provide you with tax advice for your individual situation, and therefore we strongly recommend speaking with a professional tax advisor to get tailored help and advice for your specific circumstances. The information on this page is for New Zealand audiences only.
2 IR may impose penalties for the failure to provide information to another person under any tax legislation. Additionally, under the new information reporting rules, IR may impose a penalty of NZ$1,000 if you provide false or misleading information, or do not provide information to Uber within a reasonable time after having received a request for the information. If you incorrectly declare your GST registration status, and Uber has provided you with a flat rate credit under the new GST laws, you must pay that amount to IR. If you fail to do so, IR can impose penalties, including use of money interest and shortfall penalties of up to 150% of the amount not paid.
3 The 8.5% flat rate credit is calculated on the fare amount net of the 15% GST that Uber will retain and remit to IR. This means trip earnings would decrease by 5.65% for drivers-partners. To make up for this and ensure your earnings remain on par with an equivalent trip before 1 April 2024, we'll reduce your Service Fee by 6%.
4 Your personal and tax identification information includes: Your first and last name (if registered as an individual) or your legal name (if registered as an entity); your primary address; the jurisdictions you are a resident in; your tax identification number, and the jurisdiction that issued it (ex: IRD number); your date of birth; your business registration number if you are registered as an entity (for example, NZBN for companies).
5 Details of your income includes: your total income, including tips; the number of relevant activities (including any trips you complete); fees, commissions, or taxes withheld (including Service Fee); your financial account identifier (e.g. bank account number); and the name of the holder of your financial account (e.g. the name of the holder of your bank account).