Understanding Uber Drivers and Uber Eats Couriers in Canada
In Canada, platforms like Uber and Uber Eats have transformed the gig economy, offering flexible work opportunities to thousands of individuals. Whether you're an Uber Driver, providing rideshare services, or an Uber Eats Courier, delivering food and beverages to customers, these roles offer independence and earning potential.
However, with this flexibility comes the responsibility of managing your own income, expenses, and taxes. As self-employed contractors, drivers and couriers must understand their unique tax obligations, including reporting income, remitting GST/HST, and claiming eligible deductions like vehicle expenses or delivery equipment.
This guide is designed to help rideshare drivers and food delivery couriers navigate their financial responsibilities in Canada, ensuring compliance with tax laws while maximizing earnings and deductions. Whether you’re behind the wheel or on foot, understanding how to manage your income and taxes effectively is essential for maximizing your earnings and staying compliant with Canadian tax laws.
Uber Drivers in Canada
Uber Drivers in Canada operate as rideshare drivers, offering transportation services to passengers using the Uber platform. They are considered independent contractors, not employees, which means they manage their own work schedules, earnings, and tax obligations.
Key Features of Being an Uber Driver in Canada:
Passenger Transportation: Provide on-demand rides to customers who book trips through the Uber app.
Vehicle Requirements: Must meet specific criteria, such as being a 4-door vehicle that passes Uber’s safety standards and local licensing requirements.
Flexibility: Drivers set their own hours, choosing when to work.
Tax Responsibilities: Drivers are self-employed, meaning they must report income, deduct eligible expenses, and remit GST/HST.
Uber Eats Couriers in Canada
Uber Eats Couriers deliver food and beverages from restaurants and other businesses to customers through the Uber Eats platform. Like drivers, they are independent contractors responsible for managing their own work and taxes.
Key Features of Being an Uber Eats Courier in Canada:
Food Delivery: Couriers pick up orders from partner restaurants or stores and deliver them to customers.
Multiple Delivery Modes: Deliveries can be completed using cars, bikes, scooters, or on foot, depending on the city and courier preference.
Flexibility: Similar to Uber Drivers, couriers set their schedules and choose when to work.
Tax Responsibilities: Couriers must report income, deduct expenses like delivery bags or vehicle costs, and remit GST/HST.
Key Differences Between Uber Drivers and Uber Eats Couriers
Feature | Uber Drivers | Uber Eats Couriers |
Service Provided | Passenger transportation | Food and beverage delivery |
Mode of Operation | Cars only | Cars, bikes, scooters, or on foot |
GST/HST Collection | Mandatory for all rideshare services | Mandatory for all food delivery services |
Expenses | Vehicle-related expenses dominate | Additional expenses like delivery bags |
Both roles provide the flexibility to work independently while earning income, but they come with distinct responsibilities and opportunities tailored to their respective services.
The following guide integrates details from Uber Canada’s delivery page and provides actionable tax tips for drivers and couriers.
1. Income Reporting for Uber Eats and Uber Drivers
Uber Eats couriers and Uber drivers are classified as independent contractors. This means:
You are self-employed and must report all income earned through the Uber platform, including trip fares, delivery fees, and tips.
Use Form T2125: Statement of Business or Professional Activities to report your income and expenses.
Pro Tip: Uber provides an annual earnings summary, which can simplify your reporting process.
2. GST/HST Registration for Uber Eats and Uber Drivers
Who Needs to Register?
All Uber and Uber Eats drivers must register for a GST/HST account, regardless of income level.
You must charge GST/HST on all deliveries and rides.
The applicable rate depends on your province (e.g., 13% HST in Ontario or 5% GST in Alberta).
How to Register:
Create a My Business Account on the CRA website.
Apply for a GST/HST number.
Begin collecting GST/HST on every fare or delivery.
Example: If you complete $1,000 worth of deliveries in British Columbia, you must collect $50 in GST.
3. Maximizing Tax Deductions
As a self-employed individual, you can reduce your taxable income by claiming business-related expenses.
Deductible Expenses for Uber Drivers and Uber Eats Couriers
Vehicle-Related Costs:
Fuel and oil.
Maintenance and repairs.
Auto insurance (pro-rated for business use).
Vehicle depreciation through Capital Cost Allowance (CCA).
Delivery Equipment:
Bags, thermal containers, or coolers used for Uber Eats deliveries.
Mobile Device Expenses:
Cell phone bills and data plans (portion used for business).
Other Costs:
Parking fees.
Tolls during rides or deliveries.
Capital Cost Allowance (CCA) for Motor and Electric Vehicles
For Motor Vehicles
Class 10: For vehicles costing less than $30,000 (before GST/HST), you can
claim 30% annually as CCA.
Class 10.1: For vehicles exceeding $30,000, claim up to the capped $30,000.
For Electric Vehicles (EVs)
Class 54: For EVs costing up to $59,000 (plus GST/HST), you can claim
30% annually as CCA.
Class 55: Eligible zero-emission vehicles can be fully deducted up
to $59,000 in the year of purchase under CRA incentives.
Example: If you purchase an electric vehicle for $50,000 to use exclusively for Uber Eats deliveries, you can claim up to 100% in the first year under specific CRA programs.
4. GST/HST Collection and Remittance
Uber Eats couriers and Uber drivers must remit collected GST/HST to the CRA.
Key Steps:
Collect GST/HST on each fare or delivery.
File GST/HST returns online via My Business Account.
Deduct Input Tax Credits (ITCs) for GST/HST paid on eligible business expenses like vehicle repairs or delivery bags.
5. Uber Eats and Uber Driver-Specific Details
Flexible Work Options
According to Uber Canada’s delivery page, drivers and couriers have the flexibility to:
Choose their own hours.
Use various modes of transportation, including cars, bikes, or even delivering on foot.
Track earnings and delivery performance in real time using the Uber Driver app.
Vehicle Requirements
Cars: Must meet local requirements for rideshare or delivery services.
Bikes and Walking: Available in select cities for couriers, providing additional flexibility.
Important: Maintain receipts for any equipment or supplies purchased specifically for Uber Eats, such as insulated delivery bags or bike maintenance.
6. Record-Keeping for Uber Drivers and Couriers
Proper record-keeping is essential for filing taxes and claiming deductions:
Track income and expenses daily using apps like QuickBooks or spreadsheets.
Keep detailed mileage logs for trips related to Uber or Uber Eats.
Store all receipts for gas, maintenance, supplies, and other expenses.
7. Filing Deadlines and Payment
Income Tax Deadline
File your income tax return by June 15 if you are self-employed.
Pay any taxes owed by April 30 to avoid interest or penalties.
GST/HST Remittance
File monthly, quarterly, or annually, depending on your earnings.
8. Professional Tax Assistance
Managing taxes as a self-employed individual can be complex. Working with a tax professional ensures:
Compliance with CRA regulations.
Maximized deductions, including CCA and ITCs.
Accurate GST/HST filings.
References and Citations
Canada Revenue Agency. "Ride-sharing and GST/HST." Available at: canada.ca
TurboTax Canada. "Tax Tips for Uber Drivers in Canada." Available at: turbotax.intuit.ca
Instaccountant. "Filing GST/HST for Uber and Delivery Drivers." Available at: instaccountant.com
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