Explained the puzzle of tips left: how much tax falls on the state in any case

In the social network Facebook it was ensured that the taxes paid for tips to the state budget depend directly on the way in which they were left.

Most of their fees will be paid if they have been paid directly into the company’s bank account, for example, after they have already been credited to the received utility bill.

It was calculated that if a tip of 121 euros was received, after deducting all taxes, in this case it would be 60.5 euros. The budget pays EUR 21 for value added tax (VAT), EUR 20 for personal income tax (PIT), EUR 21.27 for compulsory medical insurance (PSD) and state social insurance (VSD).

“Another 1.77 euros is an additional cost of the company, which is not financed with the amount of 121 euros received,” explained Soc. The network.

The situation is somewhat different if the employee’s tips are paid in cash and the employee keeps them for himself.

The employee who receives the tips must declare them himself on the annual return and pay 15%. GPM. After deducting taxes of, say, 121 euros, the employee has 103 euros left.

“If a resident does not earn tips and has enough expenses to corroborate their salary income, the STI does not have the opportunity to prove how much of the tip is not reported and the resident forgot to pay taxes,” the association explained.

If the tips received are donated by the employee to the company’s general cash register, the scheme of the first case, in which all taxes are paid: VAT, GPM, PSD and VSD, is also applied to the calculation of their taxes.

It was also explained that if tips are paid for catering services, which are subject to 9%. VAT, the employee will receive 12 percent. more, because it will not be 100 euros, but 111 euros to cover salary costs.

And in the case of tips paid for services subject to different VAT rates (9 and 21%), the part of VAT owed on tips is recalculated according to the percentage of taxable income.

“In fact, it would be necessary to put the tips distributed separately according to the VAT rates of the services provided,” explained the association the calculation.

Daiva Čibirienė, president of the Lithuanian Association of Accountants and Auditors, jointly emphasized that there is a big difference in the way we tip.

“The difference is huge. If we want to have more money left to the person himself, we must know it.

If we leave the money to the company, it will be the income of the company and then the complete program related to the taxation of the company’s income begins and the person, in fact, has half of the amount left, adds the employer around of a pair. more euros out of pocket.

If we leave it to the person himself, it is not considered part of their salary, it is no longer considered part of the company’s income, it deducts part of the taxes, the only other question is whether the waiters declare tips ”, explained D. Čibirienė .

In general, the president of the association said that the tip calculation system is quite complex.

“In fact, we don’t even have statistical information on how much that tip is, if it is a significant amount and if it is worth having such a complicated calculation because of that,” he said.