Verified for 2026 Tax Year

Uber & Gig Economy GST Rules

How the NZ "App Tax" affects rideshare drivers and delivery riders. Understand the 8.5% credit and how the platform handles the IRD for you.

From 1 April 2024, the New Zealand government introduced sweeping changes to how the gig economy is taxed. Ride-sharing (Uber, Zoomy, Ola) and food delivery (Uber Eats, DoorDash) drivers saw a massive shift in how their GST is handled, commonly referred to as the "App Tax".

The New Platform Rules

The Platform (e.g., Uber or DoorDash) now collects and pays the 15% GST on every ride or delivery directly to the IRD on your behalf.

You do NOT pay GST to the IRD on your fare income.
This applies even if you are not personally GST registered.

How the 8.5% Credit Works

Customer Pays $100 for a Ride (Incl. GST)

Uber Pays IRD

15% Standard GST

$13.04

Uber Pays Driver

Flat-Rate Credit

8.5% ($7.39)

1. If You Are NOT Registered

If your total income from all sources is under $60,000, you don't need to do anything. Uber handles the GST entirely.

The 8.5% Flat-Rate Credit: To compensate you for the fact you can't claim GST back on your petrol, car maintenance, or insurance, Uber will automatically pay you an extra 8.5% flat-rate credit on top of your earnings. This 8.5% is treated as tax-free income.

2. If You ARE Registered

If you are already GST registered (perhaps because you also do private charters, contracting, or your income exceeds $60k):

✓ Uber still pays the 15% GST to IRD on your behalf.
✓ You treat your Uber income as Zero-Rated in your GST return.
✓ You claim GST on your expenses (fuel, car, repairs) as normal.
✗ You do NOT receive the 8.5% credit from Uber.

Check Your App Settings!

You must notify the platform if you are GST registered. If they think you aren't, they will pay you the 8.5% credit by mistake. When the IRD matches your details, you will be forced to pay that credit back to the government, often with penalties.

Frequently Asked Questions

Do I need to register for GST as an Uber driver?

If your total business income is under $60,000, you do not need to register. Under the new App Tax rules, Uber collects and pays the 15% GST on your fares directly to the IRD, even if you are not registered.

What is the 8.5% flat-rate credit?

If you are not GST registered, Uber will pay you an extra 8.5% credit on top of your earnings. This is tax-free income designed to compensate you for the fact that you cannot claim GST back on your vehicle expenses (like fuel and maintenance).

What if I am already GST registered for another business?

If you are already registered, you must notify the platform. They still pay the 15% GST to the IRD, but you treat your Uber income as zero-rated in your return. You continue to claim GST on your expenses as normal, but you do NOT get the 8.5% credit.

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