Uber taxi GST-free ride is about to end

THOUSANDS of Uber drivers across the nation will have to register for GST by August 1, which could mean the cost of rides taken by consumers on the popular ride-sharing service rises by 10 per cent.

The Australian Taxation Office has confirmed that people who provide ride-sharing services such as Uber are providing "taxi travel" under GST law.

The decision may be viewed as slap in the face for fast-growing companies such as Uber, which has long argued that it's a "ride-sharing" service and its drivers are not taxi drivers, and, therefore, do not need to have an ABN and pay GST.

People driving Uber cars and similar ride-sharing services are being warned by the ATO that they have until August 1 to register for GST.

The move could mean that Uber's cheaper option, uberX, becomes more expensive as the 10 per cent GST rate is applied on rides.

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Topics:  gst taxi uber

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