Uber and other ride-share services to charge GST/HST effective July 1st


Prime Minister Justin Trudeau and Finance Minister Bill Morneau announced the 2017 budget today. While there is some good news for those seeking additional childcare, there is also a small tax increase coming to alcohol and tobacco — as well as a whole new tax for Uber.

In an effort to “reflect changes in the economy,” the government will be updating tax measures ride-sharing services such as Uber. According to the report, the Liberal government will “amend the definition of a taxi business under the Excise Tax Act to level the playing field and ensure that ride-sharing businesses are subject to the same GST/HST rules as taxis.”

Canadians who are using Uber have not been paying taxes for the service, only paying for “tolls, surcharges, and fees.”  Though this may seem like a mere small increase to the cost of Uber, it could take Canada one step closer to seeing the rumoured ‘Netflix Tax,’ otherwise known as a digital streaming services tax.

“What we’ve done is say…if you’re in an Uber or in a taxi, you pay GST. That’s consistent with what Canadians expect,” said Morneau.

In a statement to MobileSyrup, Uber Canada’s Susie Heath stated, “We are reviewing the Budget and will have more to say in the coming days.”

The GST/HTC applies to Uber rides and other ride-sharing services on July 1st, 2017.

Source: Canada