The taxation of tips was published in the Official Gazette under the title Law 376/2022. From January 1, it applies to restaurants, bars and other events where drinks are served.

Fiscal consultant Adrian Benza made a brief analysis of the law, mentioning also the tax regime.

A gratuity is any amount voluntarily provided by a customer in addition to the cost of purchased goods and services.

“The legislator assumed that the amount of the tip is from 0% to 15% of the cost of consumption, and, as a rule, before issuing a tax receipt, the customer will be given a payment certificate, and the customer will decide the amount of the tip in the form of a percentage or a fixed amount,” – says Benz.

Subsequently, he says, a tax receipt is issued, which, in addition to the purchased goods, will indicate the amount of the tip.

If a customer requests an invoice for goods/services purchased and the tip amount has been paid as a gratuity, the tip amount will be clearly stated on the invoice.

Taxation of tips

What is the tax treatment of tips according to Adrian Benzi:

1. Gratuities are exclusively the amount due to employees, from the category “income from other sources”, taxed exclusively at the tax rate of 10%, which is paid and declared by the 25th of the following month through the declaration form 100, and annually by the last day of February of the following year will be declared through the declaration on form 205 on income and taxes realized by natural persons.

Note: the individual tip size must be determined by the employer, who is required to keep operational records.

2. Gratuities are not a supply of goods or services for VAT purposes, so no VAT will be charged on this amount.

3. The law expressly prohibits the reclassification of tips as wage income and, as a result, no social security is payable.

4. If the gratuity is paid by another economic entity, such as, for example, a dinner organized on the eve of the New Year, paid by a company paying income tax, which additionally pays gratuities, for gratuities the law provides that the tax treatment is to be considered protocol expenses, of course, according to the terms of deductions of the Fiscal Code.

5. At the restaurant/bar company level, the amount of tips is not income or expense, but is an amount transferred to the account of debtors/creditors.

What is an accounting monograph

Accounting monograph of a tip in the amount of 100 lei, confirmed by the tax register and received with payment by bank card:

a) Selection of the tip:

461 “Other debtors – tip received from customers” = 462 “Other creditors – analytical tip to provide to employees” in the amount of 100 lei.

b) Collection by the bank:

5121 “Bank accounts in lei” = 461 “Miscellaneous debtors – tips received from customers” with an amount of 100 lei.

c) Tax withheld from other sources at the rate of 10%:

462 “Other creditors – analytical tip for employees” = 446 “Other taxes and fees – analytical tax on income from other sources” with the amount of 100 lei x 10% = 10 lei.

d) Payment of net tips to employees by bank transfer:

462 “Other creditors – analytical hint for employees” = 5121 “Bank accounts in lei” with the amount of 90 lei.

e) payment of tax by the 25th of the following month:

446 “Other taxes and fees – analytical tax on income from other sources” = 5121 “Bank accounts in lei” with an amount of 10 lei.

Remember:

• the procedure for distinguishing tips is regulated only for the activities of restaurants and bars, and not for other areas where tips are given, for example, hairdressers, beauty salons, etc.

• if the delivery is made to the home, it is not necessary to indicate the tip in the tax receipt;

• delivery of goods and services does not depend on tipping.