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How to do your VAT registration

You cannot register for VAT if your only income is from transport services supplied to Riders as the transportation services provided by you to riders is exempt from VAT in South Africa.

But you may be required to register for VAT, or you may be able to register for VAT voluntarily if you have income from non-exempt services (such as marketing and availability services) supplied to Uber or other persons. If you’re new to VAT, this page walks you through the basics of your registration process. Please register via efiling or visit the South African Revenue Service (SARS) office closest to you for a VAT registration if you qualify as a VAT vendor in terms of South Africa tax legislation.

Consult a tax advisor for more details on criteria and requirements that apply to you.

What a VAT registration entails

VAT collected from providing services

Where you are registered for VAT, you must charge and collect VAT on non-exempt services (such as marketing and availability services) supplied to Uber or any other persons.

VAT charged to you on business expenses

VAT can also be charged to you by Uber and other parties. For example on business expenses such as car repairs, Uber’s service fee, and cleaning. You may be able to deduct this from the VAT you have collected.

More details can be found HERE

How to get started

Criteria and Requirements

You must register for VAT If your income from non-exempt services (such as marketing and availability services) supplied to Uber and other parties), exceeds R1 million in any consecutive 12 month period.

You may qualify for voluntary VAT registration if your income from such services exceeds or is likely to exceed R50,000 in any consecutive 12 month period.

More information can be found HERE on SARS’ website.

We strongly recommend that you speak with a tax professional to ensure you fully understand your VAT obligations.

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For Small Business Regimes

How to do your VIES-registration

Turnover tax is a simplified tax system for small businesses with a qualifying turnover of not more than R1 million per annum. It is a tax based on the taxable turnover of a business and is available to sole proprietors (individuals), partnerships, close corporations, companies and cooperatives. Turnover tax takes the place of VAT (in the instance that you have not decided to elect back into the VAT system), provisional tax, income tax, capital gains tax, secondary tax on companies (STC) and dividends tax. So qualifying businesses pay a single tax instead of various other taxes. It’s elective – so you choose whether to participate.

For the applicable turnover tax rates, see HERE on SARS’ website:

Your Uber Profile

Uber Profile - VAT

If applicable, be sure to provide us with a valid VAT-number (by adding it to your Tax Profile / Invoice Settings page) and to update your tax profile in the Uber App.

FAQ

  • Please register via efiling or at the nearest branch of the SARS.

  • Your turnover is the sum of the services you sold. On the Uber app this is the sales made to the Riders. However, please be aware that for tax purposes you likely need to include the turnover from any other activities you perform outside of the Uber platform too.

    We suggest you contact the SARS office closest to you and/or your tax advisor to be sure you are calculating your turnover correctly!

  • Typically, these payments are considered as services provided by you to Uber. These services may be subject to VAT in South Africa. Below are some examples of those services:

    • Referrals: Getting someone you know to sign up as a driver as well helps Uber a great deal. Therefore, we sometimes pay you for rendering this referral service to us.
    • Availability services provided by you to Uber: This is a supply of services rendered by you to Uber when you commit to making yourself available to perform Transportation Services via the Uber app for a certain period of time.

    You may also obtain other income from the Rider:

    • Cleaning fee: Charge by you to the Rider for soiling your car.
    • Lost Item fee: Charge for returning an item left in the car back to a rider

    Those fees may be subject to VAT and could, therefore, be included in your VAT return.

    Please speak with a representative at the SARS office closest to you and/or your tax advisor to ensure you apply the right treatment.

  • According to South African Income Tax legislation, tips are considered income and should be included in your tax return and taxed accordingly.

    We suggest speaking with a representative at the SARS office closest to you and/or your tax advisor to be sure you fully understand your tax obligations!

  • You must register for VAT If your income from non- exempt services (such as marketing and availability services) supplied to Uber or any other person, exceeds R1 million in any consecutive 12 month period.

    You may qualify for voluntary VAT registration if your income from such services exceeds or is likely to exceed R50,000 in any consecutive 12 month period. More information can be found HERE on SARS’ website.

    We strongly recommend that you speak with a tax professional to ensure you fully understand your VAT obligations.

  • If you are required to register for VAT make sure you do so as soon as possible. Also, make sure you submit VAT returns when you are required to do so together with any payments of VAT due to SARS.

  • Either through SARS efiling or at a SARS branch closest to you.

  • Yes. Uber is registered as a VAT vendor with SARS from May 2019 and charges VAT at 15% on its service fee and booking fee. Uber remits the VAT to SARS as part of our commitment to comply with South African tax laws.

  • Please see the Tax Guide prepared by SARS

Disclaimer

Every 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 South African audiences only.

Last updated on January 01 2022