Tips
A voluntary tip is not turnover subject to VAT, but it belongs in the till reconciliation; if it is passed on to staff, the pass-through has to be evidenced per person and can be subject to contributions.
Definition
Card payment changed the case: tips used to be a cash matter beside the till, today they run through the terminal and therefore through the business’s incoming payments. They appear on the bank statement and have to come back out of it.
Under social insurance law, what decides is whether the business distributes or staff receive directly. If the business distributes, the tip becomes a salary component and has to be payrolled accordingly.
Where to read it
What the software must be able to do
Check: a tip item in the till that does not flow into taxable turnover, reconciliation against terminal receipts, and a report per staff member for the distribution.
Checked Aug 2026
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