- Tips are treated differently in various countries regarding VAT and fiscal receipts.
- In Portugal, tips are not regulated by VAT code but clarified by the tax authority.
- Portuguese Tax and Customs Authority states tips do not need to be on invoices and are not subject to VAT.
- Tips are personal gestures to employees, not payments for business services.
- Tips are not considered taxable services under VAT law.
- Businesses are not required to issue invoices for tips.
- If tips are on an invoice, they must be shown separately and marked as not subject to VAT.
Source: fiscal-requirements.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
