Tax • 2026-02-05 • 3 min read

The $30k Tax Trap: GST/HST and the Uber Exception

The $30k Tax Trap: GST/HST and the Uber Exception
The Small Supplier threshold is the $30,000 line in the sand. But if you drive for Uber, that rule doesn't exist.

The Small Supplier threshold is the $30,000 line in the sand for most freelancers. Once your revenue hits this mark, you must register, collect, and remit GST/HST. Failing to do so means you owe the tax out of your own pocket, plus interest and late penalties.

There is a critical "gotcha" for the gig economy. If you drive for Uber, Lyft, or any commercial ride-sharing service, the $30,000 rule does not exist for you. The CRA classifies these as taxi businesses, requiring registration from your very first dollar of income.

Pro Tip: We’ve helped dozens of drivers recover thousands in GST by back-claiming expenses from their first year. Registration allows you to claim Input Tax Credits (ITCs) on gas and repairs. Set up your CRA GST/HST account immediately to start recovering those costs.