If you drive for Uber in Canada, you are legally considered a self-employed taxi business by the CRA.
That means:
- You must register for GST/HST
- You must file GST/HST returns
- You can claim Input Tax Credits (ITCs)
- You can receive GST/HST refunds
Most Uber drivers either overpay tax or don’t claim everything they’re entitled to.
This guide explains exactly how GST/HST works for Uber drivers in Canada step by step.
Do Uber Drivers Need to Register for GST/HST in Canada
Yes. Uber drivers must register for GST/HST immediately even if you earn under $30,000.
Why?
Because rideshare services are classified as taxi services and taxi operators are excluded from the small supplier exemption under Canadian tax law.
This applies to:
- Uber
- Uride
- Lyft
- Other rideshare platforms
If you haven’t registered, the CRA can backdate your registration and assess penalties.
| Platform | GST/HST Day 1? | Threshold |
|---|---|---|
| Uber/Lyft | YES | $0 |
| DoorDash/Eats | NO | $30k |
What are Input Tax Credits (ITCs)?
An Input Tax Credit (ITC) allows you to recover the GST/HST you paid on business expenses.
Simple Example:
You collected from Uber fares:
-
$4,000 HST
You paid on business expenses:
-
$1,500 HST (gas, repairs, phone, etc.)
You remit to CRA:
-
$4,000 – $1,500 = $2,500
That $1,500 is your ITC claim.
If your expenses exceed what you collected, you may receive a refund from CRA.
What Expenses Uber Drivers Claim GST/HST On?
Below are the most searched and highest-value ITC categories in Canada.
1. Vehicle Expenses
You can claim GST/HST on:
- Gas
- Oil changes
- Repairs & maintenance
- Tires
- Car washes
- Lease payments
- Car loan interest
- Vehicle registration (if HST applies)
- Car accessories (dash cam, mounts, chargers)
Keep in mind: Only claim the business-use portion.
2. Cell Phone & Data Plans
If you use your phone for:
- Uber driver app
- GPS navigation
- Customer communication
You can claim the business portion of:
- Monthly phone bill
- Data plan
- Phone purchase (partial)
3. Professional & Administrative Costs
You can claim GST/HST on:
- Accountant fees
- Tax preparation services
- Bookkeeping software (Zoombooks, Wave)
- Business bank fees
- Tax advice
4. Parking & Tolls
If HST is charged, you can claim it.
Always keep receipts.
How to Calculate Business Use of Your Uber Vehicle
You must track:
- Total kilometres driven in the year
- Business kilometres (Uber trips only)
Formula:
Business km ÷ Total km = Business-use %
Example:
40,000 total km
28,000 Uber km
28,000 ÷ 40,000 = 70% business use
You can claim 70% of GST/HST on vehicle expenses.
How to Claim GST/HST as an Uber Driver
Step 1: Register for a GST/HST Number
Register through CRA Business Registration Online.
You will receive:
- Business Number (BN)
- GST/HST program account
Step 2: Track GST/HST Collected
Download from Uber:
- Annual Tax Summary
- HST breakdown report
Step 3: File Your GST/HST Return
Most Uber drivers file GST/HST:
- Annually (if revenue under threshold)
- Quarterly (if higher revenue)
You can file GST/HST return through:
- CRA My Business Account
- Work with a tax accountant
Can Uber Drivers Get a GST/HST Refund?
Yes.
You receive a refund if:
ITCs > HST collected.
This commonly happens when:
- You purchased a vehicle
- You had major repairs
- You are in your first year
What Happens If You Don’t Register for GST/HST?
The CRA can:
- Backdate registration
- Charge penalties
- Add daily interest
- Demand unpaid HST
Many Uber drivers discover this mistake after 2–3 years. Fixing it early saves thousands.
| Mistake | CRA Penalty |
|---|---|
| No registration | 10% + interest |
| No kms log | 100% ITC denial |
| Mixed receipts | Full reassessment |
Income Tax vs GST/HST for Uber Drivers
GST/HST is separate from income tax.
As an Uber driver you must file:
- T1 Personal Tax Return
- T2125 Statement of Business Activities
- GST/HST Return
Example: $60,000 Uber Driver Tax Breakdown (Ontario)
Revenue: $60,000
HST collected (13%): ~$7,800
Business expenses (70% use):
-
Gas, repairs, lease etc.
HST paid: $3,200
Net HST owed:
$7,800 – $3,200 = $4,600
This is separate from income tax and CPP.
GST/HST Tips Uber Drivers Often Overlook
- Open a separate business bank account
- Use one card for all Uber expenses
- Take photos of receipts immediately
- Track your vehicle mileage weekly
- File GST/HST on time to avoid penalties
- Consider quarterly instalment payments
Final Advice
If you’re driving for Uber in Canada and not properly claiming GST/HST Input Tax Credits, you’re likely overpaying tax to CRA.
Understanding:
- HST registration
- ITC eligibility
- Business-use calculations
- CRA Filing requirements
…can literally save you thousands per year.
