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by graeme 3378 days ago
The firm still collects GST though. It just doesn't need to pay GST to it's contractors. In practice, the firms net finance shouldn't be different regardless of whether they have employees or exempt contractors.

Consumers contract with Uber, and pay Uber. So from what I can see, Uber should be collecting, for itself.

1 comments

Fine, so knowing this, Uber collects GST and reduces the fare by the offsetting amount. In one pocket and out of the other. It's purely optics.
Except for the fact that the GST gets remitted to the government, instead of to Uber. Your suggesting is an 5-17% reduction in margin, dependent on province.

Either way, collecting GST on a sale is the norm in Canada, regardless of what happens on the back end.

Read the parent:

> So from what I can see, Uber should be collecting, for itself.

My comment is not about remitting, it's about collection. Jesus.

I don't think you understand how this works. I can charge you $10 for a candy bar with GST included and make $.95, or I can charge $10 + 5 cents gst and make $10.

It's not at all the same thing as you previously suggested.

The entire point of this conversation here is that $10 + 5 cents gst is a price increase if you weren't bothering to charge a tax at all.

It's not purely optics. It's either an increase in Uber's prices, or a decrease in their margins.

By "collecting, for itself" I meant "for itself as the seller" rather than "collecting on behalf of its contractors"