Dáil Éireann Debate, Thursday - 28 February 2019
22. Deputy Maurice Quinlivan asked the Minister for Finance if the basis for the charging of VAT on service charges that are intended for the benefit of staff only will be examined; and if he will make a statement on the matter. [9851/19]
View answerIrish VAT legislation is governed by the EU VAT Directive and in accordance with the VAT Directive any amount which a supplier is entitled to receive forms part of the taxable amount. Therefore, where a restaurant, hotel, etc. presents a bill for a meal or any other service, all charges included are liable to VAT. This includes an amount or percentage in respect of a service charge regardless of whether the service charge is intended for the benefit of staff only. However, a voluntary payment (such as a staff tip) which is not included in the bill is outside the scope of VAT.
