UberEATS & Deliveroo under the spotlight
The ATO has confirmed that people who make money out of delivering for popular online meal ordering and delivery platforms such as UberEATS and Deliveroo will not have to register for and pay GST, unlike their counterparts at Uber, if they fall under the GST threshold.
And while UberEATS charges a service fee for each delivery to the cafe or restaurant it collects food from, it doesn't have to pay tax on that service fee.
How delivery services avoid GST
The ATO and Uber responded to a series of questions posed by Fairfax Media about UberEATS and similar delivery type services like Deliveroo.
Both confirmed that UberEATS contractors and other people contracted to a delivery service "don't need to be registered for, or pay, GST unless your turnover from all of your enterprises is, or is projected to be, $75,000 or more per annum".
But the same situation does not apply to Uber drivers. If someone drives for both ride-sharing and delivery services, he or she will have to be registered for and pay GST.
And thanks to GST rules regarding imported services and digital products, UberEATS charges the cafe a service fee for each delivery, but does not pay tax on it.