Canada Revenue Agency
www.cra.gc.ca
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Taxi and limousine operators
Taxi business means a business of transporting passengers by taxi for fares that are regulated by federal or provincial laws.
Note
If a provincial government gives its authority to regulate taxi fares to municipalities, the fares are considered to be regulated by provincial law.
A taxi business also includes limousine services, even if they are not metered. For example,
a limousine service at an hourly rate that is not metered is considered a taxi business.
Examples of taxable sales and services include:
- metered taxi and limousine fares;
- flat rate fares charged for transporting passengers by taxi and limousine;
- fees charged for leasing a vehicle to an operator;
- fees charged by taxi licence owners for the use of their taxi licence;
- dispatch fees charged by a taxi stand to an operator; and
- related charges such as waiting time, parcel delivery, and transportation of luggage.
Registering for GST/HST
As a self-employed taxi or limousine driver in a taxi business, you have to register for GST/HST.
Before you register for a GST/HST account you need to know if you have a Business Number (BN). A BN exists if you have or had at least one of our business accounts such as a Payroll account. If a BN does not exist you will receive one when you register for a GST/HST number.
Use our registration checklist to make sure you have the information we need to register your GST/HST account. We will not register your account and issue your GST/HST account number without this information. When you have all the information, and want to know our registration methods see How to register.
If you have another business
If you have another business that provides taxable goods and services other than your taxi or limousine business, you have to determine if you have to register your other business. To do so, total your taxable revenues from all of your businesses including the total taxable revenues of all your associates.
You do not have to register your other business if your total taxable revenues from all of your businesses, including your taxi or limousine business, are:
- $30,000 or less in the last four consecutive calendar quarters; or
- $30,000 or less in a single calendar quarter.
A new BN will only be issued for your additional business if the legal entities are different, such as a sole proprietor (self-employed) taxi operator who is also part of a business partnership. In this case each operation would be issued its own BN.
If you choose not to register your other business, do not collect GST/HST on those sales and do not claim any input tax credits for business purchases that relate to your other business.
For more inormation, see Pamphlet RC4125, Basic GST/HST Information for Taxi and Limousine Drivers.
Forms and publications
- Guide RC4022, General Information for GST/HST Registrants
- Pamphlet RC4125, Basic GST/HST Information for Taxi and Limousine Drivers
- Booklet RC2, The Business Number and Your Canada Revenue Agency Program Accounts
- Form RC1, Request for a Business Number (BN)
- Form RC59, Business Consent Form
