Uber Lyft CRA Canada Tax Requirements HST/ GST
As Uber or Lyft driver when you drive in Alberta or Ontario, Canada Reveneu Agency requires you to register for HST/GST account. In fact you must register within 30 days once you take first trip. Moreover Uber Lyft CRA Canada Tax Requirements, you are required to collect sales tax on each trip and remit to the CRA.
Do you know as a Uber or Lyft driver you are an independent contractor. You business activity is pretty much same as sole proprietorship or self employed. Moreover you are not Uber or Lyft employee.
Uber Lyft CRA Canada Tax Requirements
As a Uber or Lyft driver in Canada, you are required to do following:
- Register & Get GST/HST Number
- Start Collecting GST/HST on Each Trip and Bonus
- Remit & Pay the GST/HST to Canada Revenue Agency
GST/HST registration is one of Uber and Lyft requirement in Canada. In fact HST/GST registration is compulsory for Uber and Lyft drivers. is As a ride-share driver you must be registered for HST/GST account in order to collect and remit the sales tax.
If you already register for sales tax then you don't need to apply again. For instance, if you are an Uber driver and registered for sales tax. Now you apply for Lyft, you may use same HST no for Lyft.
If you never register before for sales tax. Then the first step will be to get register with Canada revenue Agency. Then you will put your HST/GST number in Uber or Lyft driver account. Finally when you will file your taxes, you will file you taxes as a independent contractor. You are required to complete T2125, you will also mention you sales tax number in T2125.
Uber Lyft Drivers HST/GST Registration
As we mentioned that HST/GST registration is mandatory for Uber and Lyft driver. It is not something that you can ignore or forget. In fact both Uber and Lyft websites mentioned that CRA requires you to get register within 30 days of accepting first trip. Moreover sales tax registration process is not that much complicated. In fact you can register for sales tax online and get your HST number.
In order to register for HST you will provide CRA your legal name, Business activity, SIN number and other information. Moreover see Uber Step by Step Instruction
To start the process of HST registration, go to CRA HST registration page cra.gc.ca/bro.
Sales Tax HST/GST Collections
When you drive Lyft or Uber, you collect HST from each rider. In fact you don't have to do anything in order to collect the sales tax. HST is calculated automatically in Uber and Lyft system, riders pay HST as part of their fare. You can view weekly total HST collected in weekly pay statement. Moreover you can also find total HST collected on monthly or annual tax summary.
In above pictures you can see weekly Uber and Lyft HST or sales tax amount collected. Moreover Lyft pay HST on bonuses amount too.
I made around $1,030 as passenger referral bonus. Learn how you can make money with Lyft Passenger Referral Bonus.
Remit and Pay the GST/HST to Canada Revenue Agency
Usually drivers pay the HST amount annually. You can also remit quarterly if you choose so. Moreover as a self employed you will fill form T2125 with your normal personal taxes. Therefore you can file your business income along you personal tax return. All you need to fill T2125 Statement of Business Activities beside your normal tax file.
Besides you have to remit GST/HST. Moreover you will get access code from CRA; you must provide business no and access code so you can file HST online.
You can claim input tax credit such as HST paid on fuel cost, meal, insurance, car maintenance, interest paid on car loan etc
Disclaimer: All information on our website provides no representations, warranties or guarantees. The information displayed is accurate to best of our knowledge. Do not consider as professional advice. Always consult professional tax accountant.