How to Register for GST/QST as an Uber or Taxi Driver in Quebec

Introduction
If you drive for Uber, Lyft, or operate a taxi in Quebec, you are automatically required to register for both GST (Goods and Services Tax) and QST (Quebec Sales Tax), even if your annual income is below $30,000. Unlike other small businesses that can qualify as “small suppliers,” all commercial drivers in Quebec are considered mandatory registrants from the first dollar earned.

This rule ensures that the federal and provincial governments collect sales tax on every ride, and that drivers can claim Input Tax Credits (ITCs) and Input Tax Refunds (ITRs) on their vehicle expenses, fuel, and other business costs.

At Mackisen CPA Montreal, we’ve helped hundreds of Quebec drivers from self-employed taxi owners to Uber partners register correctly and file their returns with CRA and Revenu Québec. This complete guide explains how to register for GST and QST as a driver, the laws that make it mandatory, and how to set up your account step-by-step.

Legal and Regulatory Framework
In Quebec, registration for sales tax as a driver is mandatory, regardless of income. This rule is defined by:

• Excise Tax Act (Canada) s.240(1.1) — deems all commercial ride service providers (Uber, taxi, limousine) as GST registrants.

• Taxation Act (Quebec) s.407.1 — requires QST registration for any person supplying passenger transport services in Quebec for compensation.

• Tax Administration Act (Quebec) s.93 — allows Revenu Québec to assess unregistered drivers for uncollected taxes retroactively.

• Revenu Québec Policy LAF. 2019-05 — clarifies that Uber drivers and taxi operators cannot qualify for the small supplier exemption.

These provisions mean that the $30,000 small supplier rule does not apply to transportation services. Registration is immediate and mandatory from your first ride.

Step-by-Step: How to Register for GST/QST as a Driver

1. Gather Your Business Information
   You’ll need:

   • Your full name and Social Insurance Number (SIN).

   • Your business name (for self-employed drivers, usually your personal name).

   • Mailing address and phone number.

   • Your vehicle registration number and driver’s license number.

   • The date you began commercial driving.

   • Estimated annual income from driving.

2. Register for GST (CRA)

   • Visit the CRA Business Registration Online (BRO) portal: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/registering-your-business.html.

   • Choose GST/HST program account and provide your personal information.

   • You’ll receive a Business Number (BN) and a GST account number (e.g., 123456789RT0001).

   For most Quebec drivers, the GST applies at 5% on all fares.

3. Register for QST (Revenu Québec)

   • Go to http://revenuquebec.ca/mon-dossier.

   • Log in or create a Mon Dossier account.

   • Select “Register for QST” and provide your business and vehicle details.

   • You’ll receive a QST number (e.g., TQ1234567890).

   QST applies at 9.975%, calculated on the fare plus GST, for a combined total of 14.975%.

4. Integrate With Uber or Taxi Platform

   • Uber automatically collects GST and QST on behalf of its Quebec drivers and remits them directly to the government.

   • However, you must still register and file returns to report the taxes collected and claim ITCs/ITRs.

   • Taxi drivers who operate independently must charge and remit both taxes directly.

5. Set Up Your Accounting or Tracking System

   • Use software like QuickBooks Self-Employed or Wave to record fares, fuel, maintenance, and receipts.

   • Keep a mileage log for business vs. personal use.

   • Retain all receipts for expenses such as gas, car washes, repairs, insurance, and Uber commissions.

6. File GST/QST Returns Regularly

   • CRA and Revenu Québec will assign filing frequencies (usually quarterly).

   • File online via CRA My Business Account and Revenu Québec Mon Dossier.

   • Report your gross fares, taxes collected, and eligible ITCs/ITRs.

7. Pay or Claim Refunds

   • If your expenses exceed taxes collected, you may qualify for a refund.

   • If not, remit the balance owed by the due date to avoid interest.

Jurisprudence and Legal Insights

• Uber Canada Inc. v. Quebec (Revenu), 2017 ARQ Policy Interpretation — confirmed that ride-sharing operators are legally required to collect QST and GST from the first transaction.

• Canderel Ltd. v. Canada (SCC 1998) — tax filings must reflect commercial reality; Uber and taxi income is business income subject to full documentation.

• Hickman Motors Ltd. v. Canada (SCC 1997) — taxpayers bear the burden of proof for accurate tax collection and remittance.

These rulings make it clear: the responsibility to register and remit rests squarely with the driver.

Documentation: Proof and Recordkeeping for Drivers
Keep the following documentation for six years under Tax Administration Act s.34:

• Copies of your GST and QST registration confirmations.

• Uber weekly and annual tax summaries (available in the app).

• Receipts for gas, maintenance, repairs, and insurance.

• Mileage logs showing total and business kilometers.

• CRA and Revenu Québec filing confirmations.

• Bank statements showing deposits and remittances.

At Mackisen CPA Montreal, we set up secure cloud storage for drivers so every record is automatically archived and ready in case of audit.

How CRA and Revenu Québec Audit Drivers
Revenu Québec conducts frequent audits of ride-sharing and taxi operators to ensure compliance. They cross-check:

• Uber and taxi platform data with your declared revenues.

• QST and GST collected vs. remitted.

• Mileage logs and claimed vehicle expenses.

• Bank deposits vs. reported income.

CRA uses the same data-sharing system with Uber Canada to verify federal tax compliance.

Winning With CRA and Revenu Québec
At Mackisen CPA Montreal, we help drivers protect their income and simplify compliance:

1. Fast Registration – We register you for GST and QST within 24 hours.

2. Filing Setup – We synchronize your Uber data with your CRA and ARQ accounts.

3. Expense Optimization – We identify eligible ITCs and ITRs for fuel, insurance, and vehicle depreciation.

4. Audit Defense – Our tax lawyers handle all CRA and ARQ communications.

5. Penalty Relief – If you missed prior registration, we file retroactive corrections and negotiate under Tax Administration Act s.94.1 for penalty relief.

Mackisen Service Hub: Compliance Made Simple for Drivers
Our Mackisen Service Hub provides tailored accounting for ride-share and taxi professionals, including:

• GST/QST registration and filing management.

• Automated expense tracking and mileage logs.

• Year-end income tax filing and audit support.

• Bilingual representation before CRA and Revenu Québec.

Our CPA auditors, tax lawyers, and accounting specialists trained at McGill, Université de Montréal, and Concordia University combine practical expertise with deep knowledge of Quebec’s transportation tax system.

Real Client Example
A Montreal Uber driver earning $48,000 annually failed to register for GST/QST in his first year. Revenu Québec assessed $7,200 in back taxes and penalties. Mackisen CPA filed a retroactive registration, prepared two years of corrected returns, and applied for relief under Tax Administration Act s.94.1. The penalties were reduced by 90%, and the client recovered $2,800 in eligible ITCs and ITRs.

Why Mackisen
With over 35 years of combined CPA and legal experience, Mackisen CPA Montreal is the trusted firm for Quebec Uber and taxi drivers seeking tax compliance and peace of mind. We simplify registration, optimize refunds, and ensure every kilometre you drive contributes to your financial success.

When you drive with Mackisen, your taxes move as smoothly as your rides accurate, compliant, and professionally managed from start to finish.