GVH clarifies the difference between a tip and a service fee

By: Trademagazin Date: 2024. 08. 20. 12:03

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Catering establishments are increasingly applying the service fee, which they can freely set, but which must be displayed on the menu and other information surfaces. Bálint Horváth, head of communications at the Economic Competition Authority (GVH), told InfoRádio that the service fee can only be used for the wages of the employees, and that it applies not only to the given server, but to all the employees of the restaurant.

The advantage of the service fee is that it can contribute to a fair wage for employees with reduced taxation. However, it is not optional, so guests have to pay for it. On the other hand, a tip is a voluntary benefit, the amount of which is determined by the guest, and which should be given directly to the server so that it remains tax- and contribution-free.

It is important to pay attention to how you give the tip to the server, because if the employer decides its fate, or if it is paid together with the total amount of the bill, then there is an obligation to pay taxes and contributions.