The Law on Taxation of 10% Tipping in Restaurants and Bars is published in the Official Gazette. This provision will come into effect on January 1, 2023.

Also, the regulatory act provides that it will be necessary to indicate this in the tax receipt.

Restaurants are obliged to provide the customer with a payment receipt before issuing a tax receipt, in the sections of which the customer can choose the level of the proposed tip from 0% to 15% of the cost of consumption.

The payment statement must also contain another column in which the customer can specify the amount offered as a tip in absolute value, if he chooses this method of determining the value of the tip provided.

Also, business entities are prohibited in any form to condition the delivery of goods or the provision of services on the provision of tips.

However, there is an exception: restaurants are not required to include tips on their tax receipts for home delivery. However, if a tax receipt tip is selected for delivery of products to the customer’s home, the provisions are fully applied accordingly, with the possibility of adapting the form to the specific area.

From a fiscal point of view, amounts received from the collection of tips from customers by restaurants and bars cannot be attributed to the element of the nature of income, and their distribution to employees cannot be attributed to the element of the nature of expenses.

Income tax (10%) payable by the employee is withheld at source when tips are distributed by companies and paid to the state budget. These amounts cannot be reclassified for tax purposes as income from wages or treated as wages.

For non-compliance with the provisions, the fine is from 2,000 to 4,000 lei.