Flat-Rate Credits

New GST Rules for Uber and Rideshare Drivers: What You Must Know About Flat-Rate Credits

Online marketplaces now collect 15% GST on your rideshare income. If you’re not GST-registered, they give 8.5% of the fare back to you as a flat-rate credit (FRC). This is meant to help you to recover the GST that you pay on your business expenses.

You can choose whether to include this credit in your income for tax purposes or exclude it.

Two Ways to Treat Flat-Rate Credits

Option 1: Include as income

1. You can treat the full rideshare income (including the 8.5%) as income.

    

2. You can claim your expenses at GST-inclusive values.

Option 2: Exclude from income

1. If you subtract the 8.5% credit from your income when filing your return.

2. Then you must claim the expenses at GST-exclusive values (i.e. divide by 1.15).