Uber T2125

Tax Topics
1

Hello,
I hope you are doing well.
When It comes to Uber driver, Should I include GST/Qst in Gross income, and then deduct GST and Qst at specific rate?
Thanks

2

There is room to record Gross income and then deduct taxes so I suppose that is the proper way. I normally report income at net of tax.

3

Net of tax? Do you mean you don’t include sales?

4

No, I meant sales not including tax. But it is better to record total income then show total taxes on the next line to get amount

[quote=“shadim2, post:1, topic:7632”]
When It comes to Uber driver, Should I include GST/Qst in Gross income, and then deduct GST and Qst at specific rate?
[/quote] Simple answer is yes.

5

Based on 8.8% rate?

1 Like
6

So based on your question you have filed an election to use the Quick Method. So yes you would show the gross revenue including the HST (13%) then deduct the 8.8% (the amount you are required to remit).
Not sure if the Quick Method would work out better or not especially with the cost of fuel now.

7

I am not familiar with Uber practices. Do you get a report from Uber showing total income and total taxes? QST rate typically is 9.975%. Where does the 8.8% come from? On the T2125, just record total income on line 3A, taxes on line 3B to arrive at your Subtotal. If you are using Quick Method, enter only Line 3A and line 3D and /or 3E.

8

@jmt He is referring to QST, not HST

9

If your client has proper bookkeeping records, with the GST/QST separated from revenue and expense totals, it’s best to record everything on the T2125 as per the client’s income statement (which would exclude GST/QST as appropriate).

If your client does not have proper bookkeeping records, and the only information you are given is totals which includes GST/QST, then enter the total revenue on line 3A; calculate what GST and QST should have been collected based on that total, and enter it on line 3B.

If your client uses the Quick Method for remitting GST, you could alternatively enter (on line 3B) the net amount of GST remitted for the year (as noted by @jimt ), but it should not be 8.8% - that rate is based on Ontario HST. Also, then, remember not to exclude the GST paid on expenses (in Part 4).

I’m not sure how QST works - can you claim ITCs? If not, then include QST paid on expenses (in Part 4).

10

@Nezzer @shadim2 If the client is registered in Quebec, then QST is claimed. If client is not registered in Quebec, but in Ontario, you can claim only 5% GST as a deduction from income and as an ITC.