What Is HST and How Does It Effect Uber Drivers?
Doing taxes is one of the tiring things to do, especially when you do not have one set of income. But that’s why we are here to help you understand and do your taxes properly. So, let’s start with what is HST?
HST (Harmonized Sales Tax) is a combination of GST (Goods and Service Tax) and PST (Provisional Sales Tax). This is used in Canada as regional provincial sales tax and goods and service taxes are combined here. However, it isn’t used throughout the country. It is only widely used in 5 provinces i.e. Newfoundland and Labrador, New Brunswick, Ontario, Nova Scotia, and Prince Edward Island. Uber HST file is collected by the CRA (Canada Revenue Agency), and so is an integral part of doing taxes.
Why Do Uber Drivers Have to Pay HST?
HST is implemented on businesses that earn profit and not salary. An Uber driver is considered as a business person who earns profit from the services they provide. And hence, an uber driver comes under the bracket of Uber HST filing.
The main condition for Uber HST file is that you earn more than $30,000 annually. If you cross that limit including all your sources of income, then you are liable to pay HST.
What are the Uber HST Filing Conditions?
As per the rules, you need to file Uber HST taxes at least once in a year. You can also pay monthly or quarterly if you earn more and finds the need to do so. Another interesting condition is that you can deduct all the expenses needed for the vehicle from the HST amount. That being said, you cannot deduct the amount if you use the vehicle for any personal use. If you use the vehicle for personal and commercial purposes, then you should keep a log of expenses, and only those can be deducted while doing Uber taxes.