Legislated and Taxed Tipping
Starting January 1, 2023, tips will be included on the bill and the fiscal receipt. The amounts originating from tips will be distributed entirely to employees, and the money from this source will be considered income with withholding at source, without being included in the calculation base for social security contributions and without falling within the scope of VAT, according to the draft law for which the deputies’ budget committee has prepared an adoption report.
Economic operators will have the obligation to hand the customer a bill, which includes sections intended for the customer’s choice of the level of tip offered, between 0% and 15% of the consumption value. The bill must also contain another section where the customer can enter the amount offered as a tip, in absolute value, if they opt for this method of determining the value of the tip granted.
The income tax owed by the employee is withheld at source at the time of tip distribution by the income payers and is paid to the state budget, according to art. 115 of the Fiscal Code. These amounts cannot be fiscally reclassified as salary income or assimilated to salaries.
Failure to comply with the provisions related to tipping will be considered a contravention, which will be sanctioned with a fine between 2,000-4,000 RON.
Frequently Asked Questions
How much tip can a customer leave on the bill?
Customers can choose a tip level between 0% and 15% of the total bill value, or they can specify a fixed amount in absolute value.
Is the tip subject to social security contributions?
No, tips are only subject to income tax withheld at source and are specifically excluded from the calculation of social security contributions and VAT.
What are the penalties for businesses that do not comply with the tipping law?
Economic operators who fail to follow the legal requirements regarding tipping face contravention fines ranging from 2,000 to 4,000 RON.