Understanding GST
in New Zealand for Rideshare Drivers (Uber, DiDi, etc.)
Rideshare GST in New Zealand: A Simple Guide for Uber and Didi Drivers. If you drive for Uber, Didi or Zoomy in New Zealand, you might have noticed some big changes to your pay and taxes recently.
The rules changed on April 1, 2024, and it has caused a lot of confusion. Many drivers are asking: “Do I still need to register for GST?” or “Why is Uber taking tax out of my fare?”
Don’t worry. We have broken it down into simple terms so you can get back on the road without stress.
What Is GST?
The Big Change in GST: Before April 2024, you only had to worry about GST if you earned more than $60,000 a year. If you earned less, you didn’t have to register, and you didn’t charge GST.
That has changed: Now, the government requires the platforms (Uber, Didi, etc.) to collect 15% GST on every single ride, no matter how much you earn. The app handles this for you, but it affects your payout differently depending on your situation.
Scenario 1: You are NOT Registered for GST
Most part-time drivers fit into this category. You don’t have a GST number, and you earn under $60,000.
Here is how it works now:
Uber/Didi collects the 15% GST from the passenger’s fare.
They pay 6.5% of that directly to the IRD (Inland Revenue).
They give the other 8.5% back to you.
What is this 8.5% payment? This is called a Flat-Rate Credit. Since you aren’t registered for GST, you can’t claim back the tax on your petrol, car servicing, or phone bills. The government gives you this 8.5% credit as a way to cover those costs without you needing to do paperwork.
What you need to do:
You do not need to file a GST return.
You do still need to file your annual Income Tax return (IR3) on your profits.
Scenario 2: You ARE Registered for GST
If you drive full-time and earn over $60,000 (or if you voluntarily registered), the rules are slightly different.
Uber/Didi still collects the 15% GST from the passenger and pays it to the IRD.
Because the platform has already paid the GST, you do not pay it again.
However, you still must file your GST returns.
In your return, you will declare your income as “zero-rated” (because Uber already paid the tax). The benefit for you is that you can still claim back the GST on all your business expenses (fuel, new tires, car wash, etc.).
Don’t Forget Your Expenses!
Whether you are registered for GST or not, you must pay Income Tax on your profit. To lower your tax bill, you need to track your expenses.
Make sure you keep a logbook and save receipts for:
Petrol / EV charging
Car insurance and registration
Mobile phone costs
Car cleaning and maintenance
Accountant fees
Still Confused? Let the Experts Help
Tax laws can be tricky, and making a mistake with the IRD can be expensive. If you are unsure if you should register for GST, or if you just want someone to handle your tax returns for you, it is best to speak to a professional.
Elite Taxation Accountants specialize in helping rideshare drivers. They understand exactly how the new Uber and Didi rules work and can ensure you claim every expense possible.
Instead of spending your weekends trying to figure out spreadsheets, let Elite Taxation Accountants sort it out so you can focus on driving and earning.
