How good are Uber at GST?

UBER not tax invoiceUber just sent me an email saying that they’re raising Uber charges 10% in Australia so that their drivers can collect GST, more or less. It also include a link to their blog with the promise of info about Tax Invoices.

Indeed there is. It says that you can email them to ask for a Tax Invoice for bills over $82.50 which is the ATO cutoff for requiring a Tax Invoice to substantiate the GST input credit for a business.

It goes on to say “All rides with UberTaxi (Sydney) or UberBlack (Sydney, Melbourne, Adelaide, Perth) will always have a Tax Invoice that you can download from riders.uber.com.”

So let’s see if Uber know how to issue a Tax Invoice.

In their instructions the ATO say Tax Invoices must have seven features:

  1. that the document is intended to be a tax invoice – MAYBE – the words “Tax Invoice” do not appear on the document but Uber do state on their blog that it is a Tax Invoice so they must intend it to be.
  2. the seller’s identity – YES
  3. the seller’s Australian business number (ABN) – YES
  4. the date the invoice was issued – YES
  5. a brief description of the items sold, including the quantity (if applicable) and the price – MAYBE – It says “Transportation services” which is vague but accurate.
  6. the GST amount (if any) payable – this can be shown separately or, if the GST amount is exactly one-eleventh of the total price, as a statement such as ‘Total price includes GST’- YES
  7. the extent to which each sale on the invoice is a taxable sale (that is, the extent to which each sale includes GST)
    either the sale is clearly identified as being fully taxable by the words ‘total price including GST’, or
    it shows the GST included in each line item (see column with the GST amount), and the sale is clearly identified as being fully taxable by the words ‘the total price includes GST’.- YES

It appears to me that Uber are providing a mechanism that lets properly registered drivers issue documents that the ATO will probably consider to be Tax Invoices but I would feel more comfortable if they put the words TAX INVOICE on it.

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