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Discussion Starter · #1 ·
Hi Guys, sorry if this has been covered elsewhere.

My accountant has advised me that under the new GST situation commencing 1st August, I will need to have a tax invoice from Uber detailing Uber's ABN and how much GST is included in the "Uber Fee".
I have asked Uber for this, will let you know if they respond.

BTW, I have commenced the processes of registering for GST. It's not easy! Has anybody else had difficulties? You need and ABN, and a TFN. Then you need to install a AUSkey on your computer, which requires the latest version of Java. I did all of this and still couldn't got on. I was using Chrome, I tried Firefox, still no luck. As a last resort I tried IE and bingo! I was in. Perhaps it is good for something :)
 

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The fee Uber charges you, has a tax code of NCF, (non capital acquisition - GST free ) meaning you can claim the fee as a deduction, but you cannot claim GST credits as their billing unit sits outside Australia (The Netherlands) and therefor isn't registered for GST.
So although they have recently increased the rates by 10% (Ghostwren has put up a post identifying the flaws in this supposed increase), it doesn't cover your additional costs of paying GST.

The Business Portal at the ATO isn't very computer friendly, but once you get the hang of it, it isn't bad.
 

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The fee Uber charges you, has a tax code of NCF, (non capital acquisition - GST free ) meaning you can claim the fee as a deduction, but you cannot claim GST credits as their billing unit sits outside Australia (The Netherlands) and therefor isn't registered for GST.
So although they have recently increased the rates by 10% (Ghostwren has put up a post identifying the flaws in this supposed increase), it doesn't cover your additional costs of paying GST.

The Business Portal at the ATO isn't very computer friendly, but once you get the hang of it, it isn't bad.
I think my calculations are wrong concerning the per KM increase. g00r, can you please help me calculate:

Is the 5c increase from $1.10 to $1.15 a 4.5% increase on that rate?
 

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Hi Guys, sorry if this has been covered elsewhere.

My accountant has advised me that under the new GST situation commencing 1st August, I will need to have a tax invoice from Uber detailing Uber's ABN and how much GST is included in the "Uber Fee".
I have asked Uber for this, will let you know if they respond.

BTW, I have commenced the processes of registering for GST. It's not easy! Has anybody else had difficulties? You need and ABN, and a TFN. Then you need to install a AUSkey on your computer, which requires the latest version of Java. I did all of this and still couldn't got on. I was using Chrome, I tried Firefox, still no luck. As a last resort I tried IE and bingo! I was in. Perhaps it is good for something :)
I just made a 5 minute phone call to ATO. Very pleasant lass sorted it all in no time. Already had the ABN, so that would have helped.
 

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Discussion Starter · #8 ·
I still think it is wrong that we do not get a tax invoice for the 'Uber Fee' and have just sent the following email to Joe Hockey:

Dear Joe,

Hello, My name is XXXXX and I am an UberX driver in Melbourne.

I understand that I need to collect GST from August 1st 2015, my question is "How can Uber avoid providing me with a Tax Invoice (inc GST) for the 20% 'Uber Fee' they charge me each week?"
You see this is one of my major expenses, and I would like to be able to claim the GST 'credit' against the GST that I am collecting.
I was retrenched just prior to Xmas last year and instead of going on unemployment benefits, I took out a loan to buy a car and partner with Uber. The way I see my situation is that the poor little 'Aussie Battler' cops it in the neck while the huge multi-national avoids paying their fair share of tax in Australia. Tell me if I am wrong.

Thanks ....
 

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http://www.businessinsider.com.au/o...000-are-one-step-closer-to-drawing-gst-2015-7

I've written to all the Premiers, Chief Ministers and Treasurer in support of charging GST on OS purchases under $1000, as it could solve our problem and address many other issues in the economy.

Also made a supportive comments here on the #bettertax Tax White Paper feedback section

The income from this sector is estimated at $17 billion, so the GST it could generate is worth around $1.7 bil. to the economy.

If Australian voters get behind this idea then the anti-GST lobbying efforts of the likes of Ebay, Amazon, Google, Apple, and Uber will be less of an issue....bottom line, they don't vote. (They do run a slick media campaign though ;) )

Charging GST on all OS purchases will not only be good for Uber Drivers, but it will put Aussie manufacturers, app developers and retailers (just too name a few) on a more level playing field with their overseas competition.

It will be Australians who ultimately pay the tax but Australians have come to accept paying the GST and I think they will welcome the close of this tax avoidance loophole that OS multinational corps have enjoyed for so long at the expense of Australian business.
 

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I agree! (except for your GST maths.. again :) )
1/11th of 17bn is $1,545,454,545.45 But what's 450,000,000 between friends?
 

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http://www.businessinsider.com.au/o...000-are-one-step-closer-to-drawing-gst-2015-7

I've written to all the Premiers, Chief Ministers and Treasurer in support of charging GST on OS purchases under $1000, as it could solve our problem and address many other issues in the economy.

Also made a supportive comments here on the #bettertax Tax White Paper feedback section

The income from this sector is estimated at $17 billion, so the GST it could generate is worth around $1.7 bil. to the economy.

If Australian voters get behind this idea then the anti-GST lobbying efforts of the likes of Ebay, Amazon, Google, Apple, and Uber will be less of an issue....bottom line, they don't vote. (They do run a slick media campaign though ;) )

Charging GST on all OS purchases will not only be good for Uber Drivers, but it will put Aussie manufacturers, app developers and retailers (just too name a few) on a more level playing field with their overseas competition.

It will be Australians who ultimately pay the tax but Australians have come to accept paying the GST and I think they will welcome the close of this tax avoidance loophole that OS multinational corps have enjoyed for so long at the expense of Australian business.
Re - $1000 threshold on GST, be careful what you wish for! You may get a shock if you order something on eBay or Amazon when this new GST measure comes in. From personal experience in importing items over a $1000, I can assure you there is much more to pay than just GST. In addition to GST, I have been charged flat rate duty and inspection fees which are added to GST, making the total over 30% on a $1200 article. Plus there will be an army of new Customs inspectors needed, which has to be paid for by us.
 

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Re - $1000 threshold on GST, be careful what you wish for! You may get a shock if you order something on eBay or Amazon when this new GST measure comes in. From personal experience in importing items over a $1000, I can assure you there is much more to pay than just GST. In addition to GST, I have been charged flat rate duty and inspection fees which are added to GST, making the total over 30% on a $1200 article. Plus there will be an army of new Customs inspectors needed, which has to be paid for by us.
I'm also in the camp where I think anything imported, of any value, should have GST applied to it. Amazon as just one example has put many local businesses out of business, mainly because of buying power but also because we can purchase from them GST exempt. Should you save a few bucks, but ultimately all of your money is going OS instead of buying from the local book store where the profits stay in Australia and they create employment here on our shores. The same goes for the thousands of companies where you can buy digital download products and the number of small businesses who have been put out of business because of it.

It's a grey area because Uber charges from OS but provides the service here, but if you are asking us to collect GST on these trips we provide, then it's good enough to ask people buying from Amazon or using AirBnB to pay GST.
 

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Discussion Starter · #13 ·
I think it's just plain fraudulent of Uber to say that the "Uber Fee" is an overseas purchase. They have an office here in Melbourne, they have staff who on-board new drivers & deal with rider issues. The fee we are paying is for a service that is provided here in Australia.
 

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But that is no different to Google's Adwords service.

When I buy ad space off Google, I buy them using Australian dollars, they have an established company in Australia, I want the ads to be shown to people in Australia and yet the billing is done out of Singapore.
Currently, tax laws allow this so unfortunately isn't fraud
 

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I think it's just plain fraudulent of Uber to say that the "Uber Fee" is an overseas purchase. They have an office here in Melbourne, they have staff who on-board new drivers & deal with rider issues. The fee we are paying is for a service that is provided here in Australia.
Our tax laws are so outdated it's not funny. As g00r said it's not fraudulent, companies make use of the tax loop holes afforded to them. Time for Australia and most other nations to firm up laws relating to foreign companies selling goods and services to their citizens and not paying taxes on those earnings. I'm sure it's a lot more complex than just doing it, but the longer we wait the more money goes overseas.
 

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I think it's just plain fraudulent of Uber to say that the "Uber Fee" is an overseas purchase. They have an office here in Melbourne, they have staff who on-board new drivers & deal with rider issues. The fee we are paying is for a service that is provided here in Australia.
Gee, you make it sound like this Uber crowd are operating in Australia...
oh, wait a minute - they ARE operating in Australia! Ha! Who knew?! :rolleyes:
.
 
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