The fare calculated by your digital platform is the full fare, which includes goods and services tax (GST).
GST must be calculated on the full fare, not the net amount you receive after deducting any fees or commission. For example, if a passenger pays $55 for a fare:
- the GST payable is $5 (1/11th of the fare)
- the digital platform takes out their fees or commission, for example $11, and pays you $44
- if the digital platform fee of $11 includes GST, you may be entitled to claim a GST credit of $1 (1/11th of the fee).
Some digital platforms include GST on the commission they charge. If they do, you may be entitled to claim a GST credit.
You will need to look at how each digital platform charges fares to determine the correct way to calculate your GST.
Example: How GST is calculated on fares
During the week, John is a ride-sourcing driver and does the following jobs:
Day |
Total fare $ |
Monday |
153.00 |
Tuesday |
220.00 |
Wednesday |
Day off |
Thursday |
256.00 |
Friday |
768.00 |
Saturday |
812.00 |
Sunday |
345.00 |
His fares for the week add up to a total of $2,554. John is registered for GST, and works out the GST on the fares by dividing 2,554 by 11. The GST on the week's work is $232.18. John will also be able to claim GST credits for GST paid on fuel and other expenses he incurred providing ride-sourcing services, including any GST in the digital platform's commission on the total amount of $2,554.
End of exampleSee also:
Find out how to calculate the GST payable on fares you receive for providing ride-sourcing services.