GVH clarifies the difference between a tip and a service fee
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.
Related news
The European Commission proposes the introduction of a new type of tax
With the support of Unicum Riserva, the new series of…
Read more >Fresh milk sales have turned into losses – GVH graph highlights
A new and previously overlooked issue has come to light…
Read more >These factors influenced prices in the milk and egg markets
The Hungarian Competition Authority (GVH) has also concluded two accelerated…
Read more >Related news
EU Sees 2% Growth In Ice Cream Production In 2024: Eurostat
Ice cream production in the EU increased by 2% year-on-year…
Read more >Oatly Is Launching A Ready-To-Drink Matcha Latte Oat Milk This Summer
Oatly is the latest plant-based milk brand to launch a…
Read more >The Hungarian Central Statistical Office (KSH) reported better-than-expected GDP data
In Q2 2025, Hungary’s GDP figures published by the HCSO…
Read more >