![]() Self-employed commercial ride-sharing drivers are considered to be making such supplies once they start providing commercial ride-sharing services, including commercial carpool services.Ī commercial activity generally means a business carried on by a person (and in the case of an individual, carried on with a reasonable expectation of profit), except to the extent to which the business involves the making of exempt supplies by the person. The amended definition only applies to taxable supplies of passenger transportation services that are made in the course of a commercial activity. To ensure that the GST/HST applies consistently to taxi services and commercial ride-sharing services, the definition of a taxi business was amended effective July 1, 2017, to also include persons carrying on a business of transporting passengers for fares by motor vehicle within a municipality and its environs if the transportation is arranged or coordinated through an electronic platform or system, such as a mobile application or website. Definition of taxi businessįor GST/HST purposes, prior to July 1, 2017, a taxi business was defined as “a business carried on in Canada of transporting passengers by taxi for fares that are regulated under the laws of Canada or a province”.Īll taxi operators are required to register for the GST/HST and to charge and collect tax on their fares, regardless of whether their total annual revenues from taxable supplies exceed the $30,000 small supplier threshold as the small supplier threshold does not apply to taxi businesses.
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