Tips made by card in French restaurants are to be zero-rated
Tips made in French restaurants and cafes with a bank card will no longer be taxable from 2022.
By making this exemption, the government aims to ensure that tips provide a real bonus to the base salary of hotel workers, thereby encouraging more people to enter an industry that currently needs around 100,000 workers. additional according to RTL.
It will also allow an increasingly cashless company to tip by card and know that the restaurant, cafe or hotel will receive the full amount.
President Emmanuel Macron announced the change in Lyon this week, while attending SIRHA, the annual global catering, hospitality, catering and gastronomy event.
According to a study carried out in May by the French institution of electronic media, the Superior Audiovisual Council, 35% of French people do not currently wear the change of leaving a tip, but 71% are in favor of tips made by digital payment .
Although they should be included on income tax returns, cash tips are hardly ever reported.
“Now that everyone is paying with a debit card or through an app, we very often don’t have enough change to add three or five euros for the service. [in a restaurant]», Declared Didier Chenet, president of the independent hotel association GNI.
“With the possibility of leaving a tip by credit card, it will become much easier.
However, some on-duty staff said the tip tax exemption would not work to increase employee wages. A waitress told BFMTV that she and her colleagues are getting “four or five times less” tips than they could have a few years ago, and that it would be better “to increase base salaries a bit. To make sure they earn enough. .
How does the tip work in France?
Most French restaurants are required by French law to take into account a service charge of up to 15% in the price of the items they offer if “[waiter] service is provided ”and therefore there is no need to leave a tip.
The supplement must be used to cover staff health benefits or paid leave.
All menus and invoices must inform customers of this system with the mention “price including service” and the reference to the percentage of charges applied.
If this is not printed on the invoice, it means restaurant staff have a fixed salary and tips are welcome if you wish to leave one, according to the French Ministry of Economy and Finance.
If you are in a price-included restaurant but still want to leave something for your server, a tip representing 5% of the bill is sufficient according to Le Dauphiné.
The car rental company Auto Europe recommends a tip of a few coins – that’s 5-10% of the bill – for good service and in high-quality restaurants. People rarely tip enough to earn a rating.
In some establishments, cash tips are usually given directly to the person who served at the table, while in others – particularly more upscale restaurants – they are put in a common pot to be divided equally among the restaurant. personnel in contact with the public.
Tipping is not usually mandatory or common in bars and clubs, but is customary for tour guides and theater openers.
In a taxi, you can round up your fare to the nearest euro, tell the driver to keep the change (keep the change), or add an extra euro or two if you wish.
In hotels, it is normal to leave a few euros for the maid and to give one euro per bag to a porter carrying your luggage. If there is a valet, you can also tip them.
Small tips are also popular with hairdressers and beauty salons, and can range from a few coins to around € 10 depending on the treatment you have received.
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