# Australian GST (VAT) court decision re Uber drivers



## Jack Malarkey (Jan 11, 2016)

Here in Australia, a Federal Court justice has confirmed that Uber drivers need to pay goods and services tax (GST) (the equivalent of value added tax (VAT) in many countries) irrespective of turnover.

Here's a link to the decision for those interested: http://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/single/2017/2017fca0110.

The usual position in Australia is that you need to register for GST only if your annual turnover is at least AUD$75,000 (about USD$60,000). A special rule, however, applies if you supply 'taxi travel'. In that case, you need to register for GST irrespective of turnover.

The GST legislation defines 'taxi travel' as 'travel that involves transporting passengers, by taxi or limousine, for fares'.

The court has held that Uber drivers fall within this definition on the basis that they transport passengers by taxi (in the ordinary meaning of the word) for fares.

The GST rate in Australia is a single rate of 10%. This is applied to the gross fares (ie, before reduction by Uber's commission).

The case may go on appeal.

The case may be of interest given its discussion of what a taxi is.


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