Taxi/ UBER/DOORDASH/ LYFT operators
Accounting for Drivers
Tax and Accounting for Ride-Share Operators
As a ride-share or delivery driver, you are considered self-employed — which means no taxes are automatically deducted from your earnings. You are responsible for reporting your income, tracking your expenses, and filing your own returns with the CRA.
Uber and Lyft ride-share drivers must register for GST/HST from day one — regardless of income. Delivery drivers (DoorDash, Skip, Instacart) only need to register once they exceed $30,000 in annual income.
Know the Difference
Ride-Share Drivers vs Delivery Drivers
- Ride-Share Drivers
UBER / Lyft / Taxi Operators
- Must register for GST/HST from day one — no income threshold
- Collect and remit GST/HST on every fare
- Can claim Input Tax Credits (ITCs) on all business expenses
- Must report all ride-share income on personal tax return
- Vehicle expenses claimable based on business use percentage
- Delivery Drivers
DoorDash / Skip / Instacart / UberEats
- GST/HST registration required only after $30,000 annual income
- All delivery income must still be reported to the CRA
- Vehicle, fuel, and phone expenses are deductible
- Mileage log is essential for claiming vehicle expenses
- CPP contributions required on net self-employment income
Ride-Share Tax Rules
Key Tax Obligations for Ride-Share Operators
01
GST/HST Registration — Uber from Day One
Uber and Lyft drivers must register for GST/HST immediately. Delivery drivers only register after earning $30,000.
02
All Income Must Be Reported
All earnings from Uber, Lyft, DoorDash, Skip, or any platform must be reported on your personal tax return.
03
CPP Contributions Are Required
Self-employed drivers must pay both the employee and employer portion of CPP — plan ahead for this cost.
04
Track Your Mileage Carefully
A mileage log showing kilometers driven for work is required by the CRA to support your vehicle expense claims.
05
Business Use Percentage Matters
Only the percentage of vehicle use that is for business can be claimed — keep personal and business driving separate.
06
Filing on Time Avoids Penalties
Missing CRA filing deadlines leads to penalties and interest — file on time and stay in good standing with the CRA.
Driver Deductions
Eligible Deductions for Ride-Share Drivers
Fuel Costs
All fuel purchased for business driving is deductible — keep all fuel receipts as documentation.
Vehicle Maintenance & Repairs
Oil changes, tire replacements, and repairs related to business use of your vehicle are deductible.
Car Insurance
The business portion of your car insurance premium is deductible based on your business use percentage.
Mileage & Vehicle Depreciation (CCA)
You can claim the kilometers driven for work and depreciate your vehicle cost over time through CCA.
Cell Phone & Data Plan
The business portion of your phone and data plan — used for navigation and receiving ride/delivery orders — is deductible.
Platform & App Fees
Service fees and commissions charged by Uber, Lyft, DoorDash, or other platforms are deductible business expenses.
Driver Records
Records Every Driver Must Maintain
Total Earnings from Each Platform
Mileage Log — Kilometers Driven for Work
All Vehicle & Expense Receipts
GST/HST Number & Filing Records
ADL for Ride-Share Drivers
Accounting Services for Ride-Share Operators
GST/HST Filings
We register, calculate, and file your GST/HST returns — claiming every eligible input tax credit on your expenses.
Self-Employed Tax Filing
We prepare your personal tax return — reporting all income and claiming every eligible deduction including per diem and CCA.
Bookkeeping
We record and organize all your income and expenses — fuel, repairs, insurance — keeping your books CRA-ready year-round.
CRA Audits / Reviews
Received a CRA notice? We represent you professionally — preparing all documents and responding on your behalf.
WCB Filings
We handle your WorkSafeBC registration and annual WCB filings — keeping you fully compliant with BC workplace insurance requirements.