This article provides step-by-step guidance on GST/HST for rideshare partners/drivers that is necessary to help you comply with the Canada Revenue Agency (CRA) guidelines. We’ll be looking at the two accounting methods for ride-share that you can choose from to calculate the net tax due for your GST/HST returns – the Regular Method and the Quick Method.

The Regular Method for Ride-Sharing

As a ride-share partner/driver, you will need to pay GST/HST on a number of expenses you have while operating your business. Some examples of GST/HST taxable expenses are; gas, vehicle maintenance & repairs, and vehicle leases.

When you choose the Regular Method, the GST/HST paid on your business-related supplies can be used as an ITC (Input Tax Credit). These amounts are deducted from the total GST/HST you collect on fares during the reporting period. The resulting amount is the net tax due for the reporting period.


  • A ride-share partner/driver in Ontario has total (gross) fares during the reporting period of $10,000.
  • The GST/HST rate in Ontario is 13%, so $1,300 was charged and collected from riders during the reporting period.
  • After reviewing receipts, the partner/driver calculates he paid $300 in GST/HST on ride-share expenses for gas, vehicle lease, registration fees, and car washes.
  • The total net tax due for the GST/HST reporting period is $1,000. These figures are reported on the GST/HST return and $1,000 must be remitted.  $1,300 – $300 = $1,000

The Quick Method to calculate GST/HST

Your other option in the Quick Method. Rather than collecting receipts and then adding the total GST/HST collected and subtracting any ITCs, the Quick Method is a simple calculation based on “total taxable supplies” (For ride-share partners/drivers, total taxable supplies is the total amount of gross fares.)

Using the Quick Method, no specific ITCs are claimed. Instead, the payment rate applied is lower than the GST/HST charged and collected by the partner/driver. Because the rate of GST/HST charged varies by province, so do the Quick Method rates. Ontario, for example, has a Quick Method rate of 8.8%. The Quick Method rate in Alberta is 3.6%. All provincial Quick Method rates can be found on CRA’s Quick Method Rates page.


  • A ride-share partner/driver in Ontario has total (gross) fares during the reporting period of $10,000.
  • The GST/HST rate in Ontario is 13%, so $1,300 was charged and collected during the reporting period. Using the Quick Method rate for Ontario of 8.8%, the partner/driver is required to remit net tax of $994.40. ($10,000 + $1,300) X .088 = $994.40

Which Accounting Method Should I Choose?

There are a number of different factors to consider when choosing between the Regular Method and the Quick Method.

The Quick Method means less math and paperwork. But, if you’re a partner/driver with high expenses, you may prefer to use the Regular Method so you can claim each ITC. What’s good for one partner/driver may not be for another; Research both methods to find out which one is right for you.

You’ll find more information on GST/HST reporting on our GST/HST for the Commercial Ride-Sharing Services web page.

QST returns for Quebec residents

Quebec residents who earn income from ride-sharing have to apply for GST/HST and QST numbers. Once you apply for the QST number, Revenue Quebec will contact CRA and apply for the GST/HST number automatically. If you already have a GST/HST and QST accounts for a prior business and it is still active, you can modify it from the “My Account for business” website.

Quick method filing is easier and faster when you file your QST return for ride-sharing since it pays back 6% automatically. However, using the quick method, you cannot apply for the input tax credit ITC since you will get a 1% reduction on the taxable revenue :

  • The 1% is applied to the first $30,000 of your income using GST and to the first $31,421 of your income using QST.
  • The quick method rates on collectible taxes are 3.73% on the income using GST and 6.16% on the income using QST. So the total rate used is 8.89%.
  • The GST rate is 5% and the QST is 9.975% making a total of 14.975% taxes. Out of this total tax paid, you will get 14.975% – 8.89% = 6% back monthly if you file the returns monthly.

You can file your GST/HST and QST returns online or by mail:

  • Online services can be accessed using the “My Account for businesses” website. You can use the express service if you have a clicSEQUR code.
  • To mail the return, you will need to fill the FPZ-500V form sent to you by Revenue Quebec. This form cannot be accessed in Revenue Quebec and has to be mailed or requested using your online account. However, a similar form can be filled using FP-500. This form cannot be mailed; it helps you prepare for the FPZ-500V when you receive it.

For more information related to drivers, GST/QST returns, visit the Revenue Quebec website.