When dealing with zero-rated supplies as a food delivery driver, although you cannot collect GST/HST on the zero-rated supplies, you can register for the GST/HST and collect Input Tax Credit (ITCs) to recover the GST/HST paid on your own purchases and operating expenses. Once the income passes the $30,000, the driver has to register for a GST/HST (QST in Quebec) account even for zero-rated supplies. If your total income, before deducting expenses, is less than $30,000, you will be referred to as a small supplier, and you are not required to register for a business number or GST/HST account. It is recommended to save at least 25% from your business earnings on the side for taxes owing by the time your file your income tax return. And since you are contracted by the carrier and not employed by them as a salaried employee, the carrier will not withhold taxes from your income on your behalf. Taxes will be applied to the net business income, not the gross amount. The net business income is reported on Line 13500 of your Income Tax and Benefit Return. You report your self-employment income on the T2125 – Statement of Business or Professional Activities form. Here you will claim your gross income from the business, deduct any expenses to calculate the net business income, and report the GST/HST paid if applicable. When working for a food delivery company, you are considered self-employed because you are free to carry out the duties as you please since you are contracted independently, not hired as an employee. The delivery driver or courier who actually delivers the goods to the customers, does not collect any GST/HST. The carrier is responsible for invoicing the customer and collecting the GST/HST from the supplier. They can either deliver the goods themselves or hire someone else to deliver them. The carrier is the person, corporation, organization, or business that supplies the freight transportation services from the suppliers to the final destination. These companies are called the invoicing carriers. Restaurants and grocery stores are shifting their delivery services from their own companies to a third party such as Uber Eats, Skip the Dishes, Just Eat, Instacart, DoorDash, Foodora, etc. The food delivery industry has taken a new toll in the past few years.
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