/Before the season: if the waiter takes the tip for himself or for the chef, there is no tax; however, if the boss intervenes, the tip is taxed
Before the season: if the waiter takes the tip for himself or for the chef, there is no tax;  however, if the boss intervenes, the tip is taxed

Before the season: if the waiter takes the tip for himself or for the chef, there is no tax; however, if the boss intervenes, the tip is taxed

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Waiters, cooks, porters, guides, hairdressers, car mechanics …, beware! Furs has published an explanation that it will be clear when you pay tax on tips and when you do not. Thus, “just in case”, you no longer have to hide from the tax office if a guest brings you another euro for good service, in restaurants, with good service, this is usually between five and ten percent of the bill.

In practice, of course, it is clear that the waiter will not bring those few euros to the boss, who will then transfer it to him as taxable income through salary. And yet – things were not clear and there could still be some liquid inspector sitting in the corner of the cafe and counting how much tip, which he might even have to be taxable, was in the waiter’s pocket. The explanations were the same. It was official that tips are the company’s revenue and must thus also be misled and taxed after they go with a salary to the waiter as a salary. So with income tax and contributions.

The essential difference is if the boss gets involved in the tip, as if he leaves her alone

What is Fursa’s latest explanation? Which tips are taxed and which are not

From the point of view of tax treatment, we distinguish three types of tips:

1. The tip is received by the waiter and this tip is for him only , which means that it is not share with anyone. He does not have to give it to the owner of the restaurant, the chefs or other employees in the restaurant, or he does not have to hand it over to the designated place. This is not taxed if it is a token amount. What this symbolic amount is has not yet been determined on Furs.

2. Another example is when, for example, a waiter and a chef agree to share a tip received , but the owner of the restaurant still does not have access to this tip. Such a tip shall also not be taxed

3. What if the owner of a restaurant, salon, hotel … requests that all tips be deposited in a specially designated place and then he at the end of the day, week or distribute this tip among waiters, cooks or other employees? This tip is taxed. Below we write how.

    Tip means the income of a legal person or, for example, a sole proprietor

  • The tip is included in the caterer’s income, which increases the tax base for corporate income tax (corporate income or business income), which is also reduced by the cost of payment to employees if the caterer distributes the tip among them. In principle, VAT is also charged on the amount, so if the tip is ten euros, of which 8.2 euros is net tip, and 1.8 euros (22 percent) is VAT.
  • When, for example, a tip is paid to an employee with a salary, personal income tax and social security contributions are also calculated on it. So – as if it were a salary.

What if, for example, a guest in a bar pays with a card and leaves a tip through the card? “Paying an individual tip with a card does not in itself change the described tax treatment,” they say on Furs.

So how could this look in practice? For example, if the invoice is 50 euros and the payment is 55, it must be recorded in the records or from the cash register that five euros is a tip. If the employer gives these five euros to a special account or withdraws cash and puts it in a specially designated place to be distributed among employees, the tip is a matter of taxation, as stated in point 3. If the employee receives it, for example a waiter issues an invoice, but there is no tax, which in practice should mean that the caterer has to transfer or pay these five euros to the waiter. There will be more ways, they are short on Furs. It is likely that the waiter who received the tip through card payment will take the money from the cash register (where there is such an agreement; this is supposed to be the practice now).

The latter, of course, is theory. The second question is how the inspector will actually check in practice who exactly received the tip and whether it was not really distributed among the employees by the decree of the boss?

Casinos are a special feature

The happiest players in the casino leave a few tens of thousands of euros in tips. But casinos are a story in themselves. The handling of tips with them is determined by law. The tip must be in special boxes and is an integral part of the casino’s income, and the amount collected is entirely used for employees’ salaries for work performance. Members of the Management Board and other executives are excluded

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