Online Tipping/Gratuities

laa_suw

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 🤨

flaneurs_lobster

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

flaneurs_lobster said:

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

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