Greece’s Supreme Court has ruled that tips to delivery workers are “salary” and have to be taxed accordingly, including social security contributions. “Tips” are now considered additional income, will be taxed as salary and targeted by the tax authorities.
According to the SC ruling, even the small amount left by a customer to an employee must be considered part of the salary and be subject to deductions and insurance contributions.
The issue arose after the mandatory interconnection of POS devices with the cash register.
Vice-president of the Federation of Restaurants, Giorgos Kourasis, told to Skai TV, that for example if a customer pays 100 euros by card and leaves a 10 euros tip, there is a special button on the POS to enter the tip so that there is no violation of the law and that the company is not charged by the tax office with the extra 10-euro.
“The tip for the businessman is a trap and an easy violation that can be committed, for the business, if some rules are not followed,” Kourasis said.
“According to the Supreme Court decision, the tip is now considered a salary. So it must be given in the form of a salary to the employee, i.e. have insurance contributions, deductions, etc. and whatever rights it confers on leave, Easter and Christmas allowances,” he added.
From the €10 tip, the state will cash 4 euro, at least, media reported.
Not that tips in Greece are not part of the salary and therefore mandatory to be paid by a customer as in some other countries.
Outrage over a paradox decision
The Supreme Court decision has triggered an outrage and many ironical comments on social media, given the fact with a recent decision the Finance Ministry exempted possessions such as yachts, for example, from the so-called “luxury tax,” as opposition party New Left pointed out.
Now there are calls on social media, to scrap the habit of paying tip with card, but always have small changes or banknotes to give it extra so the “poor devils” such as delivery workers, waiters and baristas so that they can bypass the taxation.
Many wonder, what’s next on the plans of the conservative Mitsotakis government. Some propose that he will tax children and revenues from Christmas Carols, others see as next target Wedding gifts or Baby Shower presents.
They all agree, however, that priests should be the first to have their tips for service such as a small memorial service and the reading of a blessing at the graves – usually 5 to 10 euros -, an extra 50-euro note under the hand for other services or selling candles without a receipt.
The funniest commentators claim that also high or low ranking state officers should tax the bribes they receive.
PS But the last two categories The Untouchables, guys!
POLL
Crazy.
Does that also mean that people can deduct the tips they give from the taxes they pay?
What is next, tax workers for future expected tips? Suspect workers if they don’t reach a certain quota of tips?
HA HA, funny! you can’t deduct even medical expenses.
And they wonder why so many citizens are leaving Greece to work in other countires
I don’t think because of the taxation but because the very low wages.
My daughter did leave, she made 700,- in Greece working 28 days a month and now makes double working 4 days a week in the Netherlands.
But there, meals are considered income and the employer is taxed for that!
My neighbor killed my kitten. He is a far right conspiracy nut who keeps pitpuls, People like that should be buried under prison!
What bullshit. Why make up stories.
Well I will definately put my tip of CASH in the delivery persons hand not through the machine anymore,poor things,terribly low paid with no contract,no rights,out in all weathers,cold,wind,rain,heat,life for some gets more and more cruel,I dont think they even get the minimum wage,keep some cash in the house everyone,I guess it wont be long before CASH is a thing of the past though.
Under the Greek tax code I have to spend a percentage of my income electronically or the tax authroity will impose an additional 20% tax on it. Because of that I make most payments in shops etc by debit/credit card. The exception is tavernas and cafés where I always pay the whole bill in cash, including the tip. A tip is a gift not a salary and small gifts are not taxable. If I give my friends gifts at Christmas will they soon need to declare them to the tax authority?
Mitsotakis’ ND is not a conservative government. It’s the same as Biden’s and Trudeau’s.