# New Booking Fee - GST bookkeeping correctly



## ChaCha797

Hi to all of the Uber Bookkeepers!!

Any hints for how you are processing this new booking fee - incoming as GST inclusive and outgoing as GST Free, with the GST left with the driver to declare to ATO.... not sure how to correctly show this in my BAS and tax calculations?

I'm in QLD by the way.

Thanks for any thoughts/advice.
Cheers


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## ChaCha797

So there are no Uber drivers who are bookkeepers or accountants.......??


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## NZShaker

ChaCha797 said:


> So there are no Uber drivers who are bookkeepers or accountants.......??


U should ask ur accountant they will give u the best advice.


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## ChaCha797

NZShaker said:


> U should ask ur accountant they will give u the best advice.


Ah there's always various 'interpretations' on how to correctly enter data for bookkeeping.... I'm always curious about what/how other people are processing their data as well...

I'm really surprised no one seems to know - on an Uber wage who can really afford to pay an accountant to do all of the bookkeeping??


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## letmethehellin

I was about to write a reply on this, but It seems I actually have no Idea .. 
Give me a week when i've caught up to my recent BAS and I will tell you how I delt with it,

But at this stage I assume you add it to the fare as normal eg:
Fare plus surge plus whatever as your gross
Pay your GST on that gross
Claim the Booking fee as a deduction (booking fee as 50c not 55c) 

Having said all that.. I have absolutely no idea what so ever


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## ChaCha797

Thanks UberBooks - yes I understand all of that.


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## UberDriverAU

UberBooks.net said:


> Technically the booking fee is the Uber's income not the driver's. That's why it's an in-and-out payment, however since it contains the GST portion, the GST should be remitted back to the ATO, which Uber give back as a booking fee (GST amount).


Technically it is income for both Uber and the driver. The driver passes on the cost with no markup.


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## ChaCha797

Thanks everyone - my question is not what it is... I am simply wondering how other people data entry it on a bookkeeping level for the ATO.


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## lui6155

ChaCha797 said:


> Thanks everyone - my question is not what it is... I am simply wondering how other people data entry it on a bookkeeping level for the ATO.


I use MYOB and process the Income as a GST taxable and the Fee as not taxable for GST.

From a BAS input point of view pretty simple, pick up the Income portion in Label G1 ie the 55c and the 5c in Label 1A.

This is the same principle before the booking fee was introduced ie Income GST taxable and Uber Fee no GST.


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## ChaCha797

lui6155 said:


> I use MYOB and process the Income as a GST taxable and the Fee as not taxable for GST.
> 
> From a BAS input point of view pretty simple, pick up the Income portion in Label G1 ie the 55c and the 5c in Label 1A.
> 
> This is the same principle before the booking fee was introduced ie Income GST taxable and Uber Fee no GST.


Fantastic thanks lui6155 - exactly what I was after!
Cheers!


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## UberDriverAU

ChaCha797 said:


> Thanks everyone - my question is not what it is... I am simply wondering how other people data entry it on a bookkeeping level for the ATO.


What it is determines how you account for it. So that is the first question you need to ask yourself when putting something on your books.

If you were to think of the booking fee as "not your income" you would make mistakes on both your activity statements and income tax returns.


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## letmethehellin

What was the conclusion of this?

The rider pays a booking fee of 0.55 which passes through us and goes straight to uber, of this, uber gives us 0.05c for passing it on and tells us it's some form of tax.

So we include the 0.55c in out gross fare for the quarter, and we pay the gst on that gross fare.
Do we now claim the 0.55c as a tax credit? .. or do we claim 0.05c as a tax credit.. or 0.50c ... or none at all.

Im confused.


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## UberDriverAU

It is confusing because the way Uber handles their various fees has no systematic treatment. It really is a dogs breakfast. And now there is the added complication of whether or not you have supplied Uber with your ABN and GST registration status. If you have, their fees are GST-free, if you haven't their fees are subject to GST. Hmmm.


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## Jack Malarkey

UberDriverAU said:


> It is confusing because the way Uber handles their various fees has no systematic treatment. It really is a dogs breakfast. And now there is the added complication of whether or not you have supplied Uber with your ABN and GST registration status. If you have, their fees are GST-free, if you haven't their fees are subject to GST. Hmmm.


Agreed. For example, they don't provide a tax amount for split fare fees but do for the booking fee even though they essentially recoup the whole fee from the driver in both cases.

My golden retriever's breakfast is much more elegant than any of this and retrievers aren't known for elegance when eating.

And Uber doesn't make it all that easy to find gross fare figures for GST purposes. Someone could easily but incorrectly use amounts net of the Uber service fee depending on what they use to ascertain their earnings.


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## UberDriverAU

Would you agree with the following analysis Jack?

If you *have not* provided an ABN, then:

(1) Service Fee for UberX: 22% or 27.5% with GST creditable.
(2) Booking Fee: Rider pays $0.55 with GST payable, Uber takes $0.50 with GST creditable.
(3) Split Fare Fee: Each rider pays $0.30 with GST payable, Uber takes $0.30 with GST creditable.

If you *have* provided an ABN, then:

(1) Service Fee for UberX: 20% or 25% with no GST creditable.
(2) Booking Fee: Rider pays $0.55 with GST payable, Uber takes $0.50 with no GST creditable.
(3) Split Fare Fee: Each rider pays $0.30 with GST payable, Uber takes $0.30 with no GST creditable.

Those who are clued on might notice a nice benefit to not providing Uber with an ABN.


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## lui6155

UberDriverAU said:


> Those who are clued on might notice a nice benefit to not providing Uber with an AB


Good summary UberDriverAU...but per your last comment yes a benefit in NOT providing an ABN (by virtue of claiming credits on the Uber fees etc) but this benefit is outweighed by the additional GST charged on the Gross fares...I know which one I would prefer.


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## UberDriverAU

lui6155 said:


> but this benefit is outweighed by the additional GST charged on the Gross fares...


... for which you can claim GST credits so there's zero net change on the service fees. Instead of making a loss on split fares I now break even, and instead of breaking even on the booking fee I now make a profit. Why not exploit Uber's ad hoc accounting?  They've been screwing us over on split fares for ages, I'm going to recoup that and more on the booking fee which applies to every single fare. At least until they figure out what's going on and do something about it.


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## Jack Malarkey

UberDriverAU said:


> Would you agree with the following analysis Jack?
> 
> If you *have not* provided an ABN, then:
> 
> (1) Service Fee for UberX: 22% or 27.5% with GST creditable.
> (2) Booking Fee: Rider pays $0.55 with GST payable, Uber takes $0.50 with GST creditable.
> (3) Split Fare Fee: Each rider pays $0.30 with GST payable, Uber takes $0.30 with GST creditable.
> 
> If you *have* provided an ABN, then:
> 
> (1) Service Fee for UberX: 20% or 25% with no GST creditable.
> (2) Booking Fee: Rider pays $0.55 with GST payable, Uber takes $0.50 with no GST creditable.
> (3) Split Fare Fee: Each rider pays $0.30 with GST payable, Uber takes $0.30 with no GST creditable.
> 
> Those who are clued on might notice a nice benefit to not providing Uber with an ABN.


Yes: a very clear and completely correct summary.


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## lui6155

UberDriverAU said:


> ... for which you can claim GST credits so there's zero net change on the service fees. Instead of making a loss on split fares I now break even, and instead of breaking even on the booking fee I now make a profit. Why not exploit Uber's ad hoc accounting?  They've been screwing us over on split fares for ages, I'm going to recoup that and more on the booking fee which applies to every single fare. At least until they figure out what's going on and do something about it.


Ok so ignoring the piddly fees,the real benefit (of not providing your ABN to Uber but continuing to lodge a BAS) is claiming the ITC on the Service Fee.

Smart mate but and yes there really is a benefit-on say $50k Gross Fares at 22% v 20% Service Fee that's a $1k ITC claim-I like it .

Moderator I nominate UberDriverAU for Forum member of the year.


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## letmethehellin

This is the most confusing thing i've ever delt with!
I ended up providing my ABN because apparently if I didn't then I couldn't claim credits from the GST i make in purchases for uber such as fuel and car washing etc. 

Wonder if I can withdraw my ABN..


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## lui6155

lui6155 said:


> Smart mate but and yes there really is a benefit-on say $50k Gross Fares at 22% v 20% Service Fee that's a $1k ITC claim-I like it


In hindsight I believe this is a zero sum game ie on the $50k gross earnings example you pay an additional $1k in Service fees ie 22% v 20% but simply claim that back as an ITC...so zero sum game/no net benefit. Apologies for being over enthusiastic.

Yes its confusing, typical Uber over complicating things at every turn.


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## UberDriverAU

lui6155 said:


> In hindsight I believe this is a zero sum game ie on the $50k gross earnings example you pay an additional $1k in Service fees ie 22% v 20% but simply claim that back as an ITC...so zero sum game/no net benefit. Apologies for being over enthusiastic.
> 
> Yes its confusing, typical Uber over complicating things at every turn.


Yep, it is a zero sum game: 20% = 22% - 2%. In fairness, they are abiding by the new GST laws.


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## ChaCha797

Thanks so much everyone for the conversation about this - great to see/meet other people that are thinking along the same lines as me. Of course I have an accountant check over everything but I like to educate myself and do all of the ground work myself to ensure so I understand exactly what is going on!

Thanks again


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## JimmyAU

Folks, I'm new to Uber, I have provided Uber with my ABN, I want to do the right thing by the ATO, therefore I want to claim all i'm entitled to from doing this Uber Driver gig. I'll appreciate it if anyone can help out buy pointing me in the right direction (....yeah yeah here comes the Trolls I guess), but seriously, is there any Aussies out there that can help me out? 

Expenditure Apps, Spreadsheets, links, I dunno anything that can help me "do it right".

at the moment I'm keeping all my fuel receipts , taking "rough" notes on the kilometres I travelled with a pax, without pax, I'm just trying to get a system together.

well Thanks in advance and be kind!


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