Stealth Accountants

UberEATS - GST on Service and Delivery Fees
I work with a cafe that has started delivering meals via UberEats, after reading through their contracts I have a few GST related queries.

... SERVICE FEE
UberEATS charges the cafe a service fee for each delivery and it is calculated as "the Retail Price of the Meal(s) sold by you via the UberEATS App (including any GST) ( the “Meal Payment”) multiplied by the above Service Fee percentage less any Discount as defined by Section 3(c) Delivery Services. The Service Fee shall be net of any GST."
The UberEATS entity is not an Australian business so I understand the basis of why the service fee they receive is net of any GST but isn't the Service Fee they charge earned in Australia therefore GST should be charged? Is it correct to charge an Australian business a percentage based on GST inclusive income?
I feel the service fee falls into the category "Things other than goods or property":
A sale of something other than goods or property is connected with Australia if any of the following applies:
- the thing is done in Australia - the seller makes the sale through a business they carry on in Australia - the sale is of a right or option to purchase something that would be connected with Australia. - the purchaser of the sale is an Australian consumer.
Example: Sales of $110.00, $100.00 income, $10.00 GST Service fee 20% $22.00, $22.00 expense, $0.00 GST Net Sales $88.00
DELIVERY FEE
When a customer orders via UberEATS they pay a delivery fee on top of meal costs, this fee is then paid to the driver. From the UberEATS contract "Delivery Partners, via the Uber Platform, will invoice you for the delivery services they provide to you. You authorizeUberEATS (i) collect a delivery charge from your customers on your behalf (the “Delivery Charge”) and (ii) remit the applicable Delivery Fee earned by a Delivery Partner on your behalf."
Essentially our cafe never actually sees the delivery partners invoices and the delivery charge is not outlined anywhere in the weekly payment summary but UberEATS does pass on the GST received from the customer for the delivery charge. So on top of every net delivery amount is a $0.45 charge. How am I supposed to account for this in my BAS? Do I have to gross up each GST amount for income then offset it with the respective expense?
Example (using above figures): Net sales $88.00 GST on Booking Fee $0.45 Payout to cafe $88.45
Total Sales $115.00 ($110.00 sales + $5.00 delivery fee) GST on Sales $10.45
Non-Capital Purchases $26.54 ($22.00 service fee + $4.54 delivery fee) GST on Purchases $0.00
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Ride-sourcing and tax Ride-sourcing and tax
Ride-sourcing, is an ongoing arrangement where:
... you (a driver) make a car available for public hire for passengers a passenger uses a website or app provided by a third party (facilitator) to request a ride, for example Uber, GoCatch and others you use the car to transport the passenger for payment (a fare). What you need to do
Similar tax obligations for taxi drivers apply to ride-sourcing providers.
The following are the basics you need to know and do for tax purposes, including:
keeping records of all your expenses and income (you can use the myDeductions tool in our app) apportioning expenses to the time you are providing a ride-sourcing service. Income tax GST – if you have a ride-sourcing enterprise Include the income you earn in your tax return Only claim deductions related to transporting passengers for a fare
@ Get an Australian business number @ Register for GST regardless of how much you earn (ride-sourcing is taxi travel for GST purposes) Pay GST on the full fare @ Only claim GST credits related to transporting passengers for a fare @ Lodge business activity statements
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