Dáil Éireann Debate, Thursday - 7 March 2019
75. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No. 22 of 28 February 2019, if a service charge presented on the bill but voluntary in nature and intended for the staff only would attract VAT; and if he will make a statement on the matter. [11301/19]
View answerAs per Parliamentary Question No. 22 of 28 February 2019, a voluntary payment (such as a staff tip) which is not included in the bill is outside the scope of VAT.
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. In accordance with the VAT Directive, any amount which a supplier is entitled to receive forms part of the taxable amount.
