Tax Guide for Uber and Rideshare Drivers: Reporting Your Earnings and Expenses — CPA Firm Near You, Montreal

Introduction

Rideshare drivers in Quebec — including Uber, Lyft, EVA, and other app-based services — must follow strict tax rules that differ from typical self-employment. Drivers must register for GST and QST from the first dollar earned, maintain detailed mileage logs, and properly track vehicle expenses. CRA and Revenu Québec frequently audit rideshare drivers because income and expenses are often poorly documented. This guide explains how rideshare drivers must report income, claim deductions, and comply with tax regulations — and how a CPA firm near you in Montreal can help protect you from reassessments.

Legal and Regulatory Framework

Under the Income Tax Act and the Taxation Act of Quebec, rideshare drivers are considered self-employed and must:
• Report all platform earnings (Uber, Lyft, etc.)
• Register for GST/QST immediately — no $30,000 small-supplier exemption
• File annual tax returns with business income schedules
• Track all deductible vehicle and operating expenses

Deductible expenses include:
• Fuel
• Maintenance and repairs
• Car washes
• Insurance
• Leasing or interest on car loans
• Depreciation (capital cost allowance)
• Tolls and parking fees
• Portion of cellphone used for business
• Rideshare fees and commissions

All deductions must be prorated based on business-use kilometres vs total kilometres driven.

Key Court Decisions

Courts have ruled that:
• Drivers must keep detailed mileage logs — estimates are not accepted
• Vehicle expenses can only be deducted based on actual business use
• Receipts lacking supplier details or GST/QST numbers may be denied
• Personal-use kilometres must be excluded
• Income from multiple platforms must be combined
Courts consistently deny deductions when drivers mix personal and business expenses without documentation.

Why CRA and Revenu Québec Target Rideshare Drivers

Rideshare operations are heavily audited because:
• Uber and Lyft automatically submit payout data to tax authorities
• Many drivers fail to register for GST/QST
• Mileage logs are missing or incomplete
• Vehicle expenses are often overstated
• Cash tips or bonuses may go unreported
• Personal and business trips are mixed
• Fuel receipts or repairs lack proper documentation

Auditors compare Uber/Lyft statements, banking records, odometer readings, and expense receipts.

Mackisen Strategy

At Mackisen CPA Montreal, we build complete bookkeeping and tax systems tailored to rideshare drivers. We:
• Register GST/QST and prepare remittances
• Maintain detailed mileage and logbook systems
• Track all vehicle-related expenses properly
• Optimize deductions based on accurate business-use percentages
• Prepare annual business income statements
• Reconcile Uber/Lyft payout statements and correct missing income
• Build audit-proof documentation for CRA and RQ

Real Client Experience

A Montreal Uber driver claimed large vehicle expenses but had no mileage logs. CRA denied most deductions. We reconstructed logs using trip history, GPS records, and maintenance logs — restoring a large portion of the deduction. Another driver failed to report bonuses and incentives from multiple platforms; we corrected filings and avoided penalties.

Common Questions

Do rideshare drivers need to register for GST/QST?

Yes. Registration is mandatory from the first dollar earned.

What vehicle expenses can be deducted?

Fuel, repairs, maintenance, insurance, depreciation, parking, and more — based on business-use percentage.

Is mileage required?

Yes. A mileage log is essential for every rideshare driver.

Does Uber provide all the information I need?

Uber provides earnings summaries, but drivers must track expenses and mileage separately.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps rideshare drivers file accurate, compliant returns while maximizing deductions. Whether driving part-time or full-time, our expert team ensures precision, transparency, and full audit protection.