Tipping rules in Hungary change: What to know before dining out
As of January, tipping in Hungary is subject to more favourable tax regulations. The National Tax and Customs Administration (NAV) announced that the scope of tax exemption for tips has been expanded.
From January, tips given not only by customers but also by the operators of hospitality establishments are exempt from taxes, NAV reports. However, to qualify for this exemption, a record must be kept showing who received what amount and when, ensuring all payment details are properly documented. This regulation also applies to tips paid via bank transfer or credit card. According to the NAV, tips paid through these methods will be tax-exempt only if a clear record of the transaction has been created.
Changes to service charge regulations
It is essential to note, however, that a tip is not the same as a service charge, Turizmus.com writes. A tip is voluntarily given by the customer, usually directly to the waiter, as a gesture of appreciation for the service. The recent legal adjustments regarding tips ensure that, regardless of the payment method, waiters will always be able to receive tips tax-free. In a related update, the regulation on service charges has also been modified. The new system introduces a dual cap for service charges: establishments can charge a maximum of 15% for individual consumption and 20% for corporate events.
Read also:
- Tipping in Hungary: Here’s how to make the right decision this summer
- Tipping: Do people tip in Hungary?
Featured image: illustration, depositphotos.com