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New Federal Budget Will Tax Your Uber Rides Starting July 1

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Today the Federal government introduced their new budget, and within it, an amendment to Canada’s Excise Tax will redefine ride-sharing companies to taxi companies, thusly introducing the requirement of collecting tax in the form of GST or HST on every ride, reports Reuters.

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Image via The Canadian Press (Sean Kilpatrick)

As it stands, Uber drivers utilize the ‘small supplier provision’ which exempts the first $30,000 in sales from GST or HST, but that will soon come to an end, as of July 1.

“It’s important to have a tax system that’s fair and less complex,” Finance Minister Bill Morneau told reporters. “With respect to Uber, what we’ve done is say there’s a level playing field. If you’re in an Uber or if you’re in a taxi, you pay GST (goods and services tax). That’s consistent with what Canadians expect, and we think it’s the right approach.”

Uber spokesman Matt Kallman said the following statement to Reuters: “We are reviewing the budget and its implications and will have more to say in the coming days.”

The amendment means the federal government will see $3 million additional revenue for the 2017 budget year, while estimated to grow to $5 million in the following years.

What do you think of paying GST/HST on your Uber rides, as of July 1st?

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