Uber is seeking to overturn orders from the Australian Tax Office (ATO), which could force its drivers to pay GST.

Lawyers representing Uber have submitted an application with the Federal Court to argue that the ATO's directive “unfairly targets” drivers, and should at leats wait until the ongoing review of the tax system is over.

“To be very clear, we believe all our driver-partners should pay their appropriate share of tax and meet their tax obligations,” the company said in a statement.

“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 ATO ordered thousands of Uber drivers across Australia to register for the GST by August 1.

The ATO says people who provide ride-sharing services such as Uber qualify as providing “taxi travel” under GST law.

If it stands, the decision would see passengers hit with a 10 per cent increase in fares.

The Australian Taxi Industry Association (ATIA) says Uber’s legal action is “yet another example of multi-billion-dollar companies wanting to make money in Australia but not pay local taxes”.

“The ATO's decision to make ride-hailing drivers register for GST simply treats them exactly the same as Australian taxi drivers,” ATIA chief executive Blair Davies told the ABC.

“UberX drivers provide point-to-point passenger transport services for commercial reward, it's just a form of taxi service.

“Having to charge GST for those services and remit that GST to the ATO doesn't disadvantage UberX drivers compared to taxi drivers, it just treats them exactly the same.”

Uber says the ATO is being hypocritical, as it took a different stance on Airbnb.

The tax office says AirBnB accommodation providers are not operating a hotel or bed and breakfast, and so are not required to register for GST.

“Over fifty jurisdictions around the world have recognised ride-sharing as a new model requiring updated regulations that reflect its unique attributes,” Uber’s statement said.

“The guidance by the ATO has tried to fit a new technology model from today into a 1990s regulatory framework that was written long before this technology ever existed.”