Last updated: 30 April 2015
TAXATION OF TIPS AND NEW RULES REGARDING OUT OF ORDER CASH REGISTERS
In our article of February 26, 2015, we informed you on the obligation of economic operators who use cash registers to display, next to the cash register, a poster informing clients of their obligation to request a fiscal receipt and, should the seller fail or refuse to issue the fiscal receipt, the poster informs clients on their right to obtain the good or service free of charge.
Thus, this poster is displayed in almost all units now, especially since a large number of economic operators have been subject lately to inspections performed by the tax authorities. Many economic operators were sanctioned by the temporary closure of their business for failing to issue a fiscal receipt. In order to regulate the obligations of economic operators whose cash registers are out of order, the Government recently passed Emergency Ordinance no. 8/2015, which also introduces the regulation of tips under Romanian law. These amendments are presented to you hereinafter.
OUT OF ORDER CASH REGISTERS
Economic operators whose cash registers are out of order are obliged to record in a special register all operations they perform and for which they cannot issue a fiscal receipt. They are also obliged to issue a simple receipt, as well as invoices, if clients request so.
Moreover, economic operators must immediately notify the cash register authorized distributor or service that the cash register is out of order and provide proof of such notification in case of a fiscal inspection.
TAXATION OF TIPS
Like everywhere else in the world, Romanian consumers usually leave certain amounts of money in gratitude for the services rendered (at the restaurant, at the hotel or elsewhere...). Until the entry into force of Emergency Ordinance no. 8/2015, tips (not compulsory, but highly appreciated) were not regulated.
From now on, tips are defined as any additional amount of money voluntarily granted by a client in return for the delivered goods or rendered services, aside from the normal remuneration due for such services, as well as change in coins left by the client on the counter.
Thus, as of now, economic operators have to issue a distinct fiscal receipt to their clients and this receipt must list the tips paid (if any). This measure was criticized by a large number of economic operators, given that certain cash registers do not allow the issuance of such a receipt and in other countries tips are included on the receipt from the very beginning and clients don’t have to wait for the extra receipt.
The internal regulation of the economic operator whose personnel receives tips will have to provide, from now on, the destination of such amount: it either represents an income for the economic operator or it is destined to the staff, as remuneration.
As regards the tax on tips, even if the draft of the Ordinance provided a 16% tax for the economic operator or 3% for small enterprises, Ordinance no. 8/2015 does not provide any taxation of tips. Consequently, it is likely that a subsequent legal deed will also provide the tips taxation rate.