NAV position regarding the legal interpretation problems of the service fee

By: Ipacs Tamás Date: 2023. 01. 24. 08:59

The gross amount of the collected service fee can be reduced by the amount of VAT before distribution and payment to the employees, but it cannot be reduced by other public charges otherwise burdened by the payer – reads the opinion, which is considered a professional opinion and does not have binding legal force.

Gábor Horváth, head of the Central Management Control Department of the National Tax and Customs Administration, provided information on the legal interpretation of the service fee at the request of the Hungarian Catering Association. The NAV informed the MVI, after discussions with the legislator, that the (gross) amount calculated with VAT collected on the legal title of the service charge must be divided among the individuals entitled to the service charge based on the agreement on the rules and proportions of the distribution, the (net) amount calculated without VAT , and the amount per person must be reduced by the amount of the social security contribution charged to the individual’s income and paid to the beneficiaries. At the same time, the gross amount of the collected service fee cannot be reduced by other public charges (e.g. tourism development contribution, small business tax) otherwise borne by the payer.