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Do I understand this correctly? Customer pays $100 for service, Uber takes (say) $45 => Driver allocation is $55. Uber now collects $10 tax from here and gives
by renewiltord 3y ago
Do I understand this correctly?
Customer pays $100 for service, Uber takes (say) $45 => Driver allocation is $55. Uber now collects $10 tax from here and gives the driver $45.
That's wrong because the passenger should be paying the sales tax. So the right way to do it is
Customer pays $100 for service + tax, which is $90.91 service + $9.09 tax. Uber takes (same ratio) $40.90. Driver allocation is now $50.01.
Okay, so the accounting was wrong here. That makes sense. Does this mean that Uber will be going back to get that extra taxed money back from the government if they paid it?