Ride sharing service Uber is taking its battle with the tax office over GST to the Federal Court.
Uber drivers will be liable to pay GST on every dollar they earn from August, after the Australian Taxation Office recently advised they are legally classified as providing taxi travel.
That means Uber drivers will need an ABN and must be registered for GST, or face significant penalties.
But Uber says its drivers are being unfairly targeted, and has filed an application in the Federal Court to challenge the ATO's position.
The company says its driver should only be required to register for GST if they have a turnover of more than $75,000 a year, in line with other individuals who provide sharing services.
"To be very clear, we believe all our driver partners should pay their appropriate share of tax and meet their tax obligations," an Uber spokesman said.
"However, we feel they have been unjustly singled out by the ATO for different tax treatment than truck drivers, bike messengers, Airbnb hosts or any other participant of the sharing economy."
The company has also called on the federal government to define how ride-sharing fits into the tax system as part of its wider tax review.
