Tuesday , October 19 2021

New rules and digitization can give less hints


May cause the tiping to disappear completely, Virke thinks.

TIP-STOP? With new rules and digital tools, the tips can be on the way.

TIP-STOP? With new rules and digital tools, the tips can be on the way.

Illustration photo: Carlos Barria Reuters Creative


With Vipps Go and ever-new payment solutions in restaurants, there are several places you have the option to tip before you have been in contact with the staff at all.

The digitalisation wave in the industry combined with the new rules for tipping can lead to tipping soon being a saga, says leader of Active Culture and Experiences, Rhiannon Hovden Edwards.

– Having to tip in advance is an issue that erodes the nature of the tip, and can cause it to drop or fall completely, Edwards tells E24.

She emphasizes that such payment solutions are not yet widespread.

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Tips are a gift

But at the same time as digitalisation, new rules have also emerged. These require the employer to report tips, make deductions and pay employer contributions for tips in the same way as regular pay.

The companies were thus given the responsibility for reporting tips to the authorities, so that the employees have to pay tax for the tips and in return receive pension and social security benefits.

– The industry says that the new rules are administratively expensive to deal with, and some places are now clearly announcing that they do not want to receive tips. They also say that tips have generally dropped after the new rules have been introduced.

CAN TALK AWAY: Tipping is a gift from a satisfied customer to a waiter, and tipping in advance with the new tax rules can cause it to completely fall away, says Rhiannon Hovden Edwards, manager of Active Culture and Experiences.

Photo: Virke

Business policy specialist Ole Michael Bjørndal.

Photo: NHO Reiseliv

– Don't think the tips will disappear

– What will happen with the tips ahead is a little early to say. We hear a bit different, where some say it is less hinted, and others say it is not that big a difference. A survey of our members shows that about 5 out of 10 have replied that they want or are considering banning tips because of the new rules, says industrial policy specialist Ole Michael Bjørndal in NHO Reiseliv.

He does not think tips will disappear, despite the fact that several people choose to ban tips.

– I think more people will choose to ban tips because the new rules are complicated. One must wait and see what the result is. Digital payment made the tip rules unnecessary as it started to get so easy and clear, but I don't think the tip will disappear.

After the summer, NHO Reiseliv will meet with members to hear how things have been going, he says.

– Although we know that more is disappearing in taxes and fees than it did before, the tip has always been taxable even if the tax payment was so. Now the guest knows that part of the tip goes to tax, but it is a nice attention to good service anyway.

Up to the restaurant

Frode Riis Andersen, press contact at Vipps, explains that the customers themselves set up the solution in VippsGo, and that they can thus choose from several different functions.

Several restaurants prefer their own app over Vipps Go

– Examples of functionalities are tax deductions, advance booking and tips. How the different customers set up this is an assessment they have to make based on how they run their business, so it is more relevant to ask the different restaurants about this.

He further states that Vipps' focus is to create solutions that simplify the everyday life of customers, and that it involves more functions than just the restaurant industry.

– The service simplifies for a wide range of small shops, teams and associations with kiosks or retail outlets. Different solutions that simplify different needs, where VippsGo is one of them.

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