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Australian court rules that Uber is a taxi service, drivers must pay service tax

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Eddie Waldo
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Now that Uber drivers must pay the goods and services tax, your Uber rides in Australia might become a bit more expensive.

Uber is not your traditional employer, since the firm does not regard its drivers as employees.

For that reason, in most jurisdictions, Uber is not considered a taxi service for tax purposes.

That latter point was struck down in an Australian court, however, with Uber reclassified as a taxi service in the region, reports The Sydney Morning Herald.

The matter stretches back to 2015, when Uber appealed a decision by the Australian Taxation Office that required Uber drivers to pay Australia s goods and services tax GST .

The decision effectively classified Uber drivers as taxi drivers and, in turn, classified the ridesharing service as a taxi service.

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Eddie Waldo
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