Why Uber & Lyft Drivers Must Register for an HST Number From Day One

If you drive for Uber, Lyft, URide, or any ridesharing app in Canada, this blog can save you stress, money, CRA trouble, and even help protect your driver account from being temporarily suspended.

Every year, we speak to hundreds of drivers who tell us they did not know they needed an HST number, assumed the $30,000 rule applied to them, or believed Uber already handled all tax-related matters.

Unfortunately, these assumptions often lead to CRA letters, reassessments, lost refunds, and in some cases, temporary suspension of the Uber or Lyft account until tax details are updated.

Let’s clear this up clearly, simply, and honestly.

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Important Takeaways

Uber and Lyft drivers must register for an HST number from their first ride, as the $30,000 rule does not apply to ridesharing.

Drivers are responsible for HST registration and filing, and missing details can lead to CRA issues or temporary account restrictions.

Registering for HST early often helps drivers claim expenses, avoid reassessments, and reduce future stress.

The $30,000 Revenue Rule – And Why It Confuses Uber Drivers

Most Canadians are familiar with the basic rule that if a business earns less than $30,000 in a 12-month period, it usually does not need to register for HST.

This rule applies to many freelancers, consultants, small service businesses, and some delivery drivers. Because of this, many Uber drivers naturally assume the same rule applies to them.

This is where the problem starts.

Uber & Lyft Are Treated Like Taxi Businesses (This Changes Everything)

CRA does not treat Uber or Lyft like a regular small business. Instead, ridesharing is classified as a taxi business.

Taxi businesses follow a special rule: taxi and ridesharing drivers must register for HST from the first dollar they earn.

There is no $30,000 exemption, no income threshold, and no exception for part-time drivers or students. Whether you earn $500, $5,000, or $50,000, if you carry passengers for money, HST registration is mandatory from Day One.

Why This Also Matters for Your Uber or Lyft Account

Many drivers are unaware that Uber and Lyft may request a GST/HST number as part of their compliance checks.

If your HST number is missing, your tax details are incomplete, or CRA flags a mismatch, your driver account may be temporarily restricted or suspended until the issue is resolved. This is not a punishment from the platform but a compliance requirement.

Having your HST number properly set up helps you avoid interruptions to your income, respond quickly if Uber requests tax details, and stay compliant with both CRA and the ridesharing platform.

"But Uber Collects HST… So Why Do I Need to Register?"

This is one of the most common and reasonable questions drivers ask.

Yes, Uber charges HST to passengers and collects it on your behalf. However, CRA still requires you to be registered for HST, file the HST return, and report the HST collected.

Without an HST number, CRA may say the tax was not properly reported, you may lose the right to claim HST refunds on expenses, and you risk reassessments later. Uber may also request updated tax details before allowing trips.

Think of it this way: Uber collects the tax, but you are still the business owner in CRA’s eyes.

A Short Story

The name below is fictional, but this situation happens every tax season.

Aman moved to Canada and started driving Uber part-time while studying. He earned about $17,000 during the year. Friends told him that because he was under $30,000, he did not need to register for HST.

As a result, Aman never registered for HST, filed his income as self-employed, and assumed everything was fine.

Months later, CRA sent a letter asking for HST details, and Uber also requested tax information on his driver profile. Aman was not in serious trouble, but he had to back-register, correct filings, and update Uber, which caused unnecessary stress and delayed his earnings.

This situation could have been avoided with the right setup from the beginning.

The Truth: HST Registration Is Not a Punishment

Many drivers fear HST registration, but when done properly, it often works in the driver’s favour.

Correct registration allows drivers to claim back HST paid on fuel, repairs, maintenance, vehicle lease or purchase costs, and phone bills. It also helps reduce how much HST is actually owed, keeps drivers CRA-compliant, and avoids both CRA letters and account interruptions with Uber or Lyft.

Most drivers who register properly do not lose money. They gain clarity and protection.

Common Myths That Hurt Uber Drivers

There are several common myths that cause problems for ridesharing drivers. The $30,000 rule does not apply to Uber. Uber does not handle all tax responsibilities. Waiting to register until CRA contacts you is risky. Part-time drivers still count, and students are not exempt from HST requirements.

For ridesharing drivers, all of these assumptions are incorrect.

When Should You Register for HST?

The best time to register is before or as soon as you start driving. The next best time is as soon as you learn that you should have registered.

Delaying registration only increases CRA risk, stress, and potential platform-related issues.

Final Takeaway

If you drive Uber or Lyft in Canada, HST registration is mandatory and the $30,000 rule does not apply. Registering early helps avoid CRA issues, protects your refunds, ensures compliance, and helps prevent disruptions to your driver account.

Doing it right once is always easier than fixing it later. This is one of the most important tax decisions a ridesharing driver will make.

About Toronto Tax Boutique

Toronto Tax Boutique works with thousands of Uber, Lyft, and gig-economy drivers across Canada every year.

Our focus is simple: clear explanations, no judgment, no unnecessary panic, and doing things the right way.

If this blog helped you understand something you did not know before, you are already on the right track.

About the Author

Manav Kalra

Co-Founder, Toronto Tax Boutique

Manav has over a decade of experience helping newcomers, students, employees, gig workers, and business owners file their taxes correctly and maximize refunds. Having arrived in Canada himself as an international student, Manav understands the confusion and stress many people face when navigating taxes and compliance.