# Does uber pay less to uber eats driver who is not registered for GST?



## deardollar (Sep 26, 2017)

I am registered for GST. Can some one who is not registered for GST let me know how his delivery fare is calculated?

For a delivery of 3.75km, it gives me $5.5 for pick-up, $3.5 for drop-off, $8.25 (2.2 * 3.75) for distance. Total $17.25. Then it takes away 30% service fee ($5.18). I got $12.07 credit to my account.

All these are inclusive of GST. So I would report $15.68 income and $1.57 GST collected. The fee is $4.71 and $1.10 GST given. I earned $10.97 ($15.68 - $4.71). This also equals to ($12.07 /11 * 10).

If I was not registered for GST. How much would Uber pay me for this delivery? Will it be $12.07? or $10.97? or $15.68 - $5.18 = $10.5 ?


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## Who is John Galt? (Sep 28, 2016)

.
Still trying to work through the figures.

While I have the team working on that, why would you inform Über that you are GST registered? And further, why would you provide them with an ABN?

.


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## deardollar (Sep 26, 2017)

Who is John Galt? said:


> .
> Still trying to work through the figures.
> 
> While I have the team working on that, why would you inform Über that you are GST registered? And further, why would you provide them with an ABN?
> ...


When I signed up for Uber, I just answered the questions asked, without thinking why.


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## Jack Malarkey (Jan 11, 2016)

(https://help.uber.com/h/b967f4e1-8646-445f-bf1e-a6a24664a295)

My son does UberEATS only and is not registered for GST. His base UberEATS fares are the same as mine. I do both UberEATS deliveries and UberX trips and I am registered for GST.

The UberEATS delivery fees in Sydney comprise a pick-up fee of $5.50 plus a drop-off fee of $3.50 plus a distance fee of $2.20 per kilometre. The service fee in Sydney is 30% for a car.

See https://www.uber.com/en-AU/drive/sydney/resources/pricing/. This information does not indicate different levels of payment according to whether or not the delivery partner is registered for GST.



Who is John Galt? said:


> . .why would you inform Über that you are GST registered? And further, why would you provide them with an ABN?


My reasons for doing both these things are as follows:

(1) It enables Uber to issue valid tax invoices on my behalf, which may be important to riders travelling in the course of their business;

(2) It helps the accuracy of the data matching program conducted by the Australian Taxation Office and reduces the possibility that the Tax Office will confuse me with another driver with a similar name; and

(3) I support the tax law being amended to oblige drivers to provide their ABN and GST details to rideshare companies and think it would be hypocritical of me not to avail myself of an opportunity to do so voluntarily.

I also initially provided my ABN and GST details to Uber because at the time it was a means to avoid a higher service fee (27.5% rather than 25%). This applied from 1 August 2017 to 30 November 2017.

The GST component of the service fee during that period could be recovered by claiming it as a GST credit but this necessitated a delay of up to three months (four months for the quarter from 1 October to 31 December).

Having already provided the details, I also yielded to inertia (in addition to the three reasons outlined above).


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## ubernotes (Nov 14, 2017)

Jack Malarkey said:


> The UberEATS delivery fees in Sydney comprise a pick-up fee of $5.50 plus a drop-off fee of $3.50 plus a distance fee of $2.20 per kilometre. The service fee in Sydney is 30% for a car.





Jack Malarkey said:


> I also initially provided my ABN and GST details to Uber because at the time it was a means to avoid a higher service fee (27.5% rather than 25%). This applied from 1 August 2017 to 30 November 2017.


I'm surprised. I registered for GST because I thought it's mandatory for Uber drivers.
However, these are Uber commissions for my account:

Delivery: 25% 
Uberx: 27.5%

Sounds like, for me, they're calculating it totally the opposite of what you said! 
Although I'm registered for GST and I wish I could cancel it if legally possible because I'm not earning enough through my ABN/Gst ( only used for Uber ).

Any thoughts?!


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## Jack Malarkey (Jan 11, 2016)

ubernotes said:


> I'm surprised. I registered for GST because I thought it's mandatory for Uber drivers.
> However, these are Uber commissions for my account:
> 
> Delivery: 25%
> ...


The normal GST threshold of $75,000 doesn't apply if you provide rideshare services. You pay GST from the first dollar.

Not only that, you then also have to pay GST from the first dollar on the turnover of any other enterprises including food delivery.

Let's say Georgina has three enterprises: (1) she is an UberX driver with an annual turnover of $12,000; (2) she is an UberEATS delivery partner with an annual turnover of $5,000; and (3) she has a lawn-mowing business with an annual turnover of $3,000.

Georgina has to pay GST on the turnover of all three enterprises.


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