Taxing Uber: BIR mulls requiring drivers to issue receipts

‘Uber’ rides are set to get a lot less convenient for the public as tax authorities plan to mandate the issuance of physical receipts—a rule ignored by most taxi operators.

Bureau of Internal Revenue (BIR) Deputy Commissioner Nelson Aspe said new guidelines would be issued to spell out the tax responsibilities of all parties in the Uber ecosystem.

READ: BIR looking into tax compliance of Uber drivers | Tax chief sets sights on Uber, etc.

Apart from the issuance of receipts, the BIR said it expects owners of cars used for Uber rides to file tax returns. Uber drivers who don’t own the cars they use would also be considered employees, and the appropriate taxes should be withheld from their salaries.

Uber rides would also be subjected to value-added tax (VAT), which would add an additional 12 percent to the cost to consumers.  The BIR would charge retroactively, Aspe said.

The official said it would ask credit card companies to submit data on Uber rides. This would ensure that tax liabilities of drivers, owners, and Uber itself are computed accurately. Uber passengers are charged online using their credit card information for rides.

Aspe said the same rules would apply to other ride-sharing services such as GrabTaxi, which offers a similar service called GrabCar. Unlike Uber, GrabTaxi’s business is entirely cash-based, which Aspe said is more difficult to track.