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Online Tipping/Gratuities

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From the viewpoint of a tip giver (not a tip recipient), can anyone point towards the HM Revenue & Customs regulation upon being charged VAT upon voluntary tipping?
I can only find E24 which states:
"Tips are outside the scope of VAT when genuinely freely given."
yet online sites add VAT 🤨

Comments

  • flaneurs_lobster
    flaneurs_lobster Posts: 6,515 Forumite
    Sixth Anniversary 1,000 Posts Photogenic Name Dropper
    Could you explain what you mean by "online tipping/gratuities"? 

    Do some e-commerce sites have a space for you to add an additional amount? 
  • Eldi_Dos
    Eldi_Dos Posts: 2,130 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper
    edited 29 March at 10:44AM


    Do some e-commerce sites have a space for you to add an additional amount? 
    I took it to be takeaway deliveries and service charges.Trying to read up on it I have learned what a 'troncmaster' is this morning, so indeed every days a school day.
  • Bookworm105
    Bookworm105 Posts: 2,016 Forumite
    1,000 Posts First Anniversary Name Dropper
    laa_suw said:
    From the viewpoint of a tip giver (not a tip recipient), can anyone point towards the HM Revenue & Customs regulation upon being charged VAT upon voluntary tipping?
    I can only find E24 which states:
    "Tips are outside the scope of VAT when genuinely freely given."
    yet online sites add VAT 🤨

    are you sure?
    is the Vat on the tip shown as a separate amount distinct from the Vat on the meal itself ?
    if not, is the Vat total mathematically based on the total paid incl tip?

    In my experience most till systems can cope with a tip without adding Vat to it.
    As you have said, where voluntarily given it is outside the scope
    On the other hand, where the menu clearly states up front that a service charge is added to the bill then that is no longer voluntary,

    How to handle VAT on tips and service charges - EOG Accounting
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