GST/HST Info Sheet GI-196 “GST/HST and Commercial Ride-sharing Services” June 2016

Extension of definition to commercial ride-sharing

To ensure that the GST/HST applies consistently to taxi services and commercial ride-sharing services, the definition of a taxi business has been amended effective July 1, 2017, to also include persons carrying on a business of transporting passengers for fares by motor vehicle within a municipality and its environs if the transportation is arranged or coordinated through an electronic platform or system, such as a mobile application or website.

The amended definition will only apply to taxable supplies of passenger transportation services that are made in the course of a commercial activity. You will be considered to be making such supplies once you start providing commercial ride-sharing services, including commercial carpool services.

Interaction of expanded taxi-business definition with small supplier exclusion

If you are a small supplier who makes taxable supplies of commercial ride-sharing services and other taxable supplies your registration will generally only apply in respect of your commercial ride-sharing services unless you request otherwise. This means that you will not be required to charge the GST/HST in respect of your other taxable supplies, nor will you be entitled to claim input tax credits (ITCs) in relation to those supplies… . However, if your combined total annual revenue from taxable supplies of commercial ride-sharing services and other taxable supplies exceeds $30,000 (for example, $20,000 for commercial ride-sharing services and $15,000 for other taxable supplies), you will not be considered a small supplier. You will therefore be required to charge and collect tax on all of your revenues from your taxable supplies (the combined $35,000).