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GST/HST info for drivers

As a Lucky driver, you’re responsible for collecting GST/HST for the Canada Revenue Agency (CRA) and for filing GST/HST returns.

GST/HST is already calculated in addition to the fares your passengers pay, so it won’t impact your earnings. Also, when you register for GST/HST, you can claim some credits back for GST/HST that you have paid when you file your taxes.

If you’ve had experience running a business in Canada, this probably sounds familiar, and you may already have a GST/HST registration number. However, if this is your first time earning on your terms, read on and we’ll talk you through how this impacts you and what you need to do.

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GST/HST benefits for Lucky drivers

When you register for GST/HST, you should be eligible to claim input tax credits on some expenses incurred as a Lucky driver. Claiming input tax credits means asking the CRA to refund you for the GST/HST you’ve paid on eligible goods and services during the tax year.

So when you pay GST/HST on some things you would’ve normally paid for as a car owner anyway — like gas, car repairs, and car washes — you may be able to claim some GST/HST back in the form of a tax credit. Of course, some restrictions do apply.

Pro tip: A tax professional can help you understand which things are eligible for input tax credits and what documentation you need to support an input tax credit claim.

Your HST/GST Quarterly Driver summary

You’ll see the following sections on your Lucky quarterly earnings summary:

Gross earnings & bonuses

Gross fares (not including GST/HST) from the rides you gave based on time and distance. Gross fares generally includes all amounts paid to you by passengers which are subject to GST/HST.

Bonuses

Amounts paid (not including GST/HST) by Lucky to you (example: referrals)

Tips

100% of all the tips you earned.

Lucky & 3rd party fees

Lucky fees reflect payments to Lucky for the ability to offer your services through the Lucky Platform. The amount of the applicable fees is communicated to you through the Driver Addendum available on the Driver Portal. This amount also includes any 3rd party fees, such as local city fees, which are collected from passengers on your behalf.

HST received from passengers

For you to report to the CRA. This consists of GST/HST Lucky collected from passengers on your behalf for the services you provided.

HST received on bonuses

For you to report to the CRA. This consists of GST/HST Lucky paid to you on bonuses.

HST/GST paid to Lucky on 3rd party fees

You paid this HST/GST to Lucky on any Lucky fees and third-party fees, such as local city fees, where applicable. When you're registered for HST/GST, you may be able to claim this amount as an input tax credit.

Ride kilometres

The number of kilometres travelled during your trips. This includes kilometres travelled on your way to pick up a passenger, as well as kilometres travelled transporting passengers. Please consult with your personal tax advisor as to the deductibility of kilometres.

Tolls

The total tolls paid to you by passengers as reimbursement for tolls you paid out of pocket.

CRA requirements for drivers

The CRA requires all rideshare drivers to:

Here are these requirements step-by-step.

Register for the GST/HST

Registering for the GST/HST is mandatory for Lucky drivers. The CRA requires drivers to apply for registration within 30 days of giving your first ride. Your registration effective date should be on or before your first ride. (The CRA is OK with you driving for Lucky as soon as you’re approved, but don't forget to register within 30 days!)

If you’ve already registered for GST/HST, you’ll just need to add your GST/HST registration number to your Driver Dashboard in the Lucky Driver app.

To register for GST online, visit the Canada Revenue Agency’s site: cra.gc.ca/bro.

This site will give you a unique business number that you’ll need to use to register for the GST/HST. When you complete your GST/HST registration, you’ll get a GST/HST registration number. You’ll need to add this GST/HST registration number to the Driver Dashboard in your Lucky Driver app.

If you have questions on completing GST/HST registration, please contact a tax professional.

Collect the GST/HST

This is the easy part. Passengers pay the GST/HST you need to collect as part of their fare. You’ll also need to collect the GST/HST paid on bonuses. We show you the GST/HST collected in your Lucky ride earnings statements — the key thing you need to do is keep that money safe so you have it ready for the CRA when you file your GST/HST return.

Pro tip: Many small business owners create a separate bank account for GST/HST collected so they don’t accidentally spend money that is owing to the CRA.

Report the GST/HST

Reporting the GST/HST means filing a GST/HST return.

You’ll need to calculate your net tax before you file a GST/HST return. Your net tax is the difference, including any adjustments, between the amount of GST/HST you collect and the amount of GST/HST you’ve paid.

The amount of GST/HST you collected is easy to find — just check either your monthly, quarterly, or annual Lucky ride earnings statement and look for the sections ‘GST/HST Collected’ and ‘GST/HST on Bonuses.’ Add these two figures together and you’ll have the total amount of GST/HST collected for your Lucky activities.

The amount of GST/HST you paid to Lucky will also be on your monthly, quarterly, or annual Lucky ride earnings statement — just look for the section ‘GST/HST on Lucky Fees.’ You can find the GST/HST you’ve paid for other goods and services on the receipts and documents you’ve been collecting to claim eligible input tax credit.

Once you know your net tax, you’re ready to file your GST/HST return. You can file your GST/HST return online with the CRA. You may also be able to file your return on paper.

Remember, everyone’s tax situation is different, so a tax professional can help you find the best way to file your GST/HST returns.

Pro tip: You’ll need to keep a record of all the GST/HST you’ve paid, so consider speaking with a tax professional to learn what may work best for you. Recording GST/HST you’ve paid on a regular basis can save you a major headache when your GST/HST return is due.

Remit the GST/HST

More simply put: pay the net GST/HST due to the CRA. There are three ways you can pay the CRA

  • Electronically
  • At your Canadian financial institution
  • Physical mail or post

Usually GST/HST payments are due at the same time as your GST/HST return — either monthly, quarterly, or annually. The payment deadline depends on your GST/HST filing period.

A tax professional can help you figure out how often you need to file your GST/HST returns, and they can even file your GST/HST returns for you.

Frequently asked questions

Here are some common questions about GST, HST, and CRA for drivers with Lucky.

What info will I need to register for GST/HST?

Before you go online to register for the GST/HST, you’ll need to prepare the following information:

  • Your full legal name
  • Your Social Insurance Number
  • Your telephone number
  • Your fax number (if you have one)
  • Your mailing address
  • A description of your business activities (that is, ridesharing services)
  • Estimated ride earnings (the form will ask you for estimated sales)
  • Effective date for your GST/HST registration (that is, on or before your first ride, but drivers can apply for registration within 30 days of giving their first ride)
  • Your GST/HST return filing frequency (that is, monthly, quarterly, or annually)

What steps do I need to follow to register for the GST/HST online?

Please see How to register for GST/HST.

Why does the GST/HST amount on my ride earnings statements look different from other ridesharing companies?

Drivers must pay GST/HST to the CRA on payments made for the service their ridesharing company provides to them. Lucky collects this GST/HST for you. Other ridesharing companies don't collect and remit this GST/HST for you, so drivers are responsible for calculating and remitting this GST/HST to the CRA. While it may seem like you make more money driving with other ridesharing companies, once you file your taxes, it all evens out.

Where can I go for more help with GST/HST?

Additional information can also be found on the CRA's website or by contacting the Canada Revenue Agency at 1 (800) 959-5525.

Every driver is unique. Every driver’s specific tax circumstances are also unique, so the information on this page may not cover your tax needs. Unfortunately, Lucky can’t provide you with tax advice, so speaking with a tax professional can be a great way to get help and advice for your specific circumstances.

What is Lucky's GST/HST registration number, and why is it important?

Lucky's GST/HST registration number is 77439 8879 RT0001.

You'll need Lucky's GST/HST registration number to claim input tax credits (so you can get back the GST/HST that Lucky charges you on the Lucky Fee and other service fees).

Vehicle identifiers
Drivers are required to display two Lucky To Go Identifiers as shown in the below images. It helps passengers and law enforcement identify your vehicle.

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