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.
How to update your tax details
1. Login to your Uber Driver account
Login to your Uber account using the Uber Driver app. Navigate to “Account”, tap on “Tax info”, and then “Tax settings”
2. Enter and submit your tax details
Enter the details your IRD number is registered under, including the company name or your legal name, address, and your IRD number.
Select your GST registration status from the dropdown.
If your turnover does not exceed the New Zealand GST registration threshold (NZ$60,000 a year), and you have not voluntarily registered for GST in New Zealand, please select the option “I am NOT registered for GST”.
Otherwise, and if you are GST-registered, select the option “I am registered for GST”, and enter your GST number, which is the same as your IRD number.
3. Save and confirm
You will need to read and acknowledge the disclaimer before you submit your details. After hitting save, you should see a green banner confirming your information was submitted successfully.
Important note: Please ensure that you accurately declare your GST status. Refer to this page for more information. Effective 1 April 2024, your GST registration status will affect the amount that will be remitted to you. See below “Frequently asked questions” for more details.
Frequently asked questions
- How do I obtain an IRD number?
There are a couple of ways to apply for an IRD number including completing an IRD number application form online via the IR website.
Contact your tax advisor for more information. The IR (Inland Revenue) is also a great resource for learning about your tax obligations. Check out the IR’s website below.
- Do I need to register for GST?
It’s important to note that Uber is not able to provide tax advice. We recommend you discuss with your own tax advisor if you have any specific questions.
For more information, you can contact your tax advisor. The IR is also a great resource for learning about your tax obligations. Check out the IR’s website below.
- How do I register for GST?
There are various ways to register for GST including completing an online application via the IR website. Note, you will require an IRD number in order to register for GST.
Contact your tax advisor for more information. The IR is also a great resource for learning about your tax obligations. Check out the IR’s website below.
- Does GST apply to my Service Fee and how can I claim this back as an input credit?
Yes, Uber’s Service Fee is subject to GST. Whether you can claim a GST credit depends on your GST registration status and individual circumstances.
Contact your tax advisor for more information. The IR is also a great resource for learning about your tax obligations. Check out the IR’s website below.
- Are tips taxable?
Tips will form a part of your income and should be reportable for your income tax purposes.
Under the new GST laws (effective 1 April 2024), Uber will collect and remit 15% GST to IR on any tips you receive. If you are not GST-registered, Uber will return 8.5% GST as a flat-rate credit to you.
Refer to the section “Tax Requirements in New Zealand for driver-partners” for more details. You may also wish to consult your tax advisor for more information.
- What expenses are deductible for income tax purposes?
It’s important to note that Uber is unable to provide tax advice. Every driver partner has different earnings and expenses, and their deductible business-related expenses will depend on their circumstances. A tax professional can review your unique tax situation and ensure you’ve included the correct expenses.
Broadly speaking, business costs incurred by driver partners in the course of providing their services via the Uber app may generally be tax deductible, for example, mileage, vehicle maintenance expenses, etc. However, apportionment of costs between private and business use may be required if you use your vehicle for both private and business use.
Contact your tax advisor for more information. The IR is also a great resource for learning about your tax obligations. Check out the IR’s website below.
- I’ve told Uber that I am GST-registered. How do the new rules (starting 1 April 2024) apply to me?
Regardless of whether you’re GST registered or not, your take-home earnings per trip will remain unchanged.
If you’ve told Uber that you’re GST-registered, then the 15% GST will no longer be remitted to you as Uber will remit this directly to IR under the new GST rules.
There are also changes to how you should complete your GST return. You may wish to speak to a tax advisor for more information on how to complete your GST return.
- I’ve told Uber that I am NOT GST-registered. How do the new rules (starting 1 April 2024) apply to me?
Regardless of whether you’re GST registered or not, your take-home earnings per trip will remain unchanged.
If you’ve told Uber that you’re not GST-registered or haven’t confirmed your registration status, then you will be subject to the new flat-rate credit scheme.
Of the 15% GST that Uber collects, 6.5% will be remitted to IR, and 8.5% will be credited back to you under this scheme.
Uber will lower your service fee by 6%, to help ensure your take-home earnings (per trip) remain the same as prior to 1 April 2024.3
Please note that IR can impose penalties if you misrepresent your registration status, and you will need to repay IR for any credits that you are not entitled to.
- I haven’t confirmed my GST-registration status with Uber. How do the new rules (starting 1 April 2024) apply to me?
You should update your tax details as soon as possible. Refer to the section “How to update your tax details” above for guidance.
If you haven’t confirmed your registration status with Uber, we will assume that you are not GST registered and the new flat-rate credit scheme will apply.
See above FAQ under “I’ve told Uber I am NOT GST-registered” for more information.
- Why has Uber reduced their Service Fee for non-GST registered driver-partners from 1 April 2024?
Under the new GST rules, Uber is required to collect and remit 15% GST to IR on all trips with effect from 1 April 2024.
If you’ve told Uber that you’re not GST-registered or haven’t confirmed your registration status, then you will be subject to the flat-rate credit scheme.
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 are therefore reducing your Service Fee by 6%.
- What information do I need to provide to Uber, which will be reported to Inland Revenue?
The new tax rules include a requirement for Uber to collect and report information on ridesharing trips facilitated via the platform to Inland Revenue. This includes:
- Your identifying information4
- Details of your income on all trips you take using the Uber Driver app.5
These changes will apply whether or not you're GST-registered.
Resources
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).
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