Rideshare drivers are responsible for collecting and reporting Goods and Services Taxes (GST). In some provinces this is called the Harmonized Sales Taxes (HST).
This tax is already calculated into the fares your passengers pay, so this doesn’t impact your earnings.
You’re responsible for filing GST/HST returns and reporting them to the Canada Revenue Agency (CRA).
The deadline to file your 2020 tax return is April 30, 2021.
Registering for your GST/HST account
Once you give your first Lyft ride, you’ll have 30 days to register for a GST/HST account with the Canadian Revenue Agency (CRA).
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 in the ‘Driver info’ tab in your Dashboard.
If you’re having trouble registering for your GST/HST account, contact a tax professional for help.
Getting your quarterly tax summary
We'll send you a quarterly tax summary to the email on your Lyft account. You'll get the email within 30 days after the end of any quarter where you received earnings.
You can expect your email for each quarter by the dates below:
First quarter: sent by the end of April
Second quarter: sent by the end of July
Third quarter: sent by the end of October
Fourth quarter: sent by the end of the following January
You can also see your weekly driver summaries in the ‘Driving History’ tab in your Dashboard. Your weekly summary will show your GST/HST breakdowns for that week.
Understanding your quarterly tax summary
You’ll see the following sections on your Lyft quarterly earnings summary:
Your gross fare is the total amount you earned from the Lyft rides you provided. This also includes tips, bonuses, and any other incentives you may have received.
A bonus or incentive is money you earned outside of ride fare, not including your GST/HST payment. A referral bonus is a common example.
This shows 100% of all the tips you earned. We don’t calculate GST/HST on tips.
These are the total fees paid to Lyft, excluding any GST/HST you paid. This includes Lyft fees and any third party fees, such as city fees.
GST/HST received from passengers
This includes all the GST/HST that Lyft collected from passengers on your behalf. You’ll report this amount to the CRA.
GST/HST received on bonuses
This includes any GST/HST Lyft paid to you on bonuses. You’ll report this amount to the CRA.
GST/HST paid to Lyft on 3rd party fees
You paid this GST/HST to Lyft on any Lyft fees and third-party fees, such as local city fees.
You may be eligible to claim this amount as an input tax credit. Talk to a tax professional for more help.
This is the number of kilometres travelled during rides. This includes kilometres travelled on your way to pick up passengers.
Kilometres may be deductible as an input tax credit. Talk to a tax professional for more help.
This is the total amount paid to reimburse you for tolls you paid out of pocket.
What you need to file your tax return
You’ll need two things to file your return:
Net tax is the difference between the GST/HST you collected, and the amount you paid.
To calculate your net tax, subtract the GST/HST you paid from the amount you collected. The result is your net tax amount.
You’ll find both of these numbers on your quarterly tax summary:
The GST/HST you collected: Amount shown for ‘GST/HST received from passengers’ plus the amount shown in ‘GST/HST received on Bonuses’
The GST/HST you paid: Amount shown under ‘GST/HST paid on Lyft & 3rd party fees’
Lyft's GST/HST registration number
If you’re planning on claiming input tax credits, you’ll need our GST/HST registration number.
Lyft's GST/HST registration number is 70664 7328 RT0001.
Save on filing with TurboTax
We’ve partnered with TurboTax to give Lyft drivers discounts on TurboTax Self-Employed.
TurboTax can help you maximize your deductions, so you can keep more of the money you earn.
Now through Apr. 30, TurboTax is offering:
40% off TurboTax Self Employed — with on-demand help.
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Everyone’s tax situation is different. If you’re not sure, ask a tax professional for help filing your return.