Service charge did not take over the role of tip in the hospitality industry
The service charge was not able to displace the tip in the hospitality industry in recent years. Restaurants are still divided in the use of the service charge and it is also not exactly known how many places introduced this cost element. According to professional organizations, where it was introduced, experiences are favorable.
The main objective of the service charge, introduced in October 2005 is to repress black economy. Its usage is not mandatory for the hospitality industry. The use of the fee should be indicated on the menu of the restaurant, while the rate can be no more than 15 percent. The service charge should be indicated on the receipt or invoice issued for the guest. It also includes the VAT. (MTI)
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