Are tips taxed in the UK?

How much tips do you give in Germany?

You are sitting in the restaurant, have eaten well and drank a few more wines and now you receive the bill. And then the brooding starts: How much do you tip?What is the usual amount? Is it already included in the estimated value? And are employees, in this case the waiters, allowed to put the money into their own pockets?

Customers who If you are satisfied with the service offered, you usually have to pay a few euros as an extra paymentto express their gratitude. These payments, known as tips, are also known as service surcharges.

In a nutshell: tip

What is a tip?

A tip is an amount voluntarily paid by a guest in a restaurant or a restaurant that provides information about his or her satisfaction. You can find information on the history of tips here.

How much should the tip be?

According to general etiquette, tips in Germany are between 5 and 10 percent. This relative amount is added to the invoice total. Read more about this here.

Does the tip have to be taxed?

You can find out here whether employees can keep tips received tax-free.

There tip goes beyond the actual remuneration agreed with the employer for services owed under the employment contract, questions keep cropping up when dealing with tips. In particular, whether tips are tax-free is in the interest of the recipient. We dedicate ourselves to clarifying these and other issues in this article.

How has the culture around tipping developed in Germany?

The history of tips goes back a long time. It is reported that the Payment of an extra amount was already common in Europe in the Middle Ages. It was paid to ensure the well-being of a craftsman or a service staffwho should use the given obulus to drink to the benefit of the donor. Even then, tips were very important for many employees, as it ensured that a possibly rather low wage supplemented could be.

It should not be concealed, however, that the tip was not only paid out of goodwill over time, but also to present oneself as something better. Because: This is how the Appears to have a lot more money than is necessary to secure one's own livelihood.

This development did not go unnoticed by employers either Reacted with wage cuts and referred to the tip. And this is exactly where the sometimes difficult social handling of tips emerged.

How much tips are paid in Germany?

To prevent employers from relying entirely on guests' voluntary payments, the Trade Regulations in addition a passage:

The payment of regular wages cannot be excluded in cases in which the employee receives a tip from a third party for his work. A tip is an amount of money that a third party pays the employee without any legal obligation in addition to a performance owed to the employer. ”(Section 107, Paragraph 3 of the Trade Regulations).

From this it follows: There is no right to tip - as a rule. Everyone Guests can decide for themselves whether to leave a tip to the waiter or to room service or not. But what amount is appropriate and when do you splurge?

To VAT introduced in 1967 It was common for that in prices in restaurants fixed surcharge of 10 percent was included. It was the so-called "Service charge". As, however, in the year 1985 the Price Indication Ordinance (PAngV) came into force, this regulation was finally abolished. Finally, the regulation requires that all food prices than actual final prices including any taxes and other charges.

However, you can despite this fact decide to do something more money than asked to pay. Because there is now the minimum wage in the hospitality industry, but this is only one Lower wage limitthat does not allow big jumps.

There is no law on the amount of tips. As a beneficiary of a service It is therefore up to you how much is the amount that you want to do without. Socially recognized is the following rule: You pay a tip of 5 to 10 percent as a surcharge on the invoice amount.

The higher the original amount, the more acceptable it is to pay a proportionate amount at the lower end of the scale and not use the full 10 percent.

Who does the tip belong to?

It is especially in restaurants, where waiters represent the work of the kitchen externally It is common practice for the service staff to lump the tips received into one pot. At the end of the day, the amount is distributed proportionally to the entire staff. After all, there are many different people involved in the delivery of a service. With a different procedure, only employees with direct customer contact would otherwise benefit from the guests' ability to pay. But what if you disagree with this? There is a tip in Germany Law that says you are required to pay the amount?


Workers are allowed to use the money, which you receive from guests as an expression of satisfaction with your performance, to keep. It is It is not justified that the supervisor requires you to hand over the amount. You are free to use it yourself, as it is assumed that the guest makes his satisfaction largely dependent on the service.
You can change the height from Calculate tips easily. It is a matter of simple percentage calculation. Your invoice amount is assumed with 100 euros shown and you want one Tip of 10 percent give. 1 percent of 100 euros is 1 euro. Multiply this by 10, this results in the tip amount: 10 euros. You put this tip on the bill. So you pay 110 euros.

If this calculation makes you sweat on your forehead ad hoc, after all, you often come across crooked amounts, you don't necessarily have to do without the tip. Meanwhile there are numerous apps for mobile phones that make it easy to find the right height. Some of them also judge whether you want to give too much or too little.

Do employees have to pay tax on tips?

As already stated, According to the trade regulations, tips are not part of the regular remuneration of an employee. Doesn't tip then have to be taxed? According to Income Tax Act, is In fact, there is no tax to be paid on a tip.

Tips that are given to the employee by third parties voluntarily and without any legal entitlement to them on the occasion of a work performance are tax-free in addition to the amount that is to be paid for this work. "Section 3 (51) Income Tax Act (EStG)

Employees in restaurants and hotels do not have to worry about having to pay taxes on wages etc. from tips. It is therefore retained in fulleven if it is Income from employment acts.

Danger: In some industries, employees are entitled to tips. This applies, for example, to movers and employees in casinos (especially at roulette tables). In these cases that is Tips are taxable. This also applies to the self-employed. If they receive a bonus payment from customers, sales and income tax must be paid for them.
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How much tips do you give in Germany?
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