A tip is part of the hospitality costs and, like them, is 70% deductible — but it often does not appear on the machine-generated bill. The best proof is a confirmation by the service staff directly on the bill; the second-best option is a self-issued receipt (Eigenbeleg).
Updated: June 2026
Yes. A tip is part of the hospitality costs and, like them, is 70% deductible as a business expense; the remaining 30% is not. The 70% rule under Section 4(5) no. 2 EStG therefore covers the tip as well.
The condition is that the amount can be proven — and this is exactly where the practical problem lies, because the tip rarely appears on the bill.
With modern till systems, the tip often does not appear on the machine-generated bill because it is given separately and voluntarily. To stay deductible, it needs its own proof.
Without proof, the tax office can simply strike the tip portion — the bill itself is unaffected, but the 10 or 20 euros of tip would be lost.
The cleanest solution is a confirmation by the service staff directly on the bill: a short note such as "Tip received: EUR 12" with a signature. The amount is then confirmed by a third party and firmly tied to the specific meal.
The second-best solution is the self-issued receipt (Eigenbeleg): you document the tip you gave yourself. That is permitted, but it carries less evidential weight than the confirmation.
For cash payment, a confirmation by the staff is strongly recommended. Without it, the tax office may treat the amount as insufficiently proven.
For card payment it is more relaxed: if the total including the tip appears on the card receipt, proof is less critical. It is advisable to attach the card statement.
| Payment method | Recommended proof |
|---|---|
| Cash | Tip confirmed by staff, or a self-issued receipt |
| Card | Card receipt showing total incl. tip + statement |
Nobody shows VAT on a tip — it is a voluntary payment made directly to the staff. There is therefore no input-VAT deduction on the tip amount.
The bill itself is different: from a proper restaurant invoice, the input VAT is 100% deductible (Section 15(1a) UStG) — the 70% cap only affects the business expense, not the VAT.
A business meal costs EUR 238 gross (EUR 200 net + EUR 38 VAT). You give a EUR 12 tip and the staff confirm it on the bill.
So the tip travels along into the 70/30 split, while the input VAT comes solely from the invoice.
Around 5–10% of the bill is customary in Germany. That is custom, not a fixed legal limit — within this range the deduction is usually unproblematic.
A disproportionately high tip can weaken the receipt's credibility and be reduced by the tax office.
In many countries, tipping is a fixed part of dining culture — above all in the USA, where the tip is written directly on the credit-card slip. From a German perspective that is actually convenient: the amount is documented in writing and easy to prove.
Abroad, the same rules apply: the tip counts as part of the hospitality costs and is subject to the 70% cap. Everything else to watch out for with foreign receipts — from missing mandatory details to currency conversion — is covered in Hospitality receipts abroad.
Perspective matters: the tip you give as the host is part of your hospitality costs and thus a business expense. Tips that your own employees receive from third parties are, by contrast, tax-free for the employee under the conditions of Section 3 no. 51 EStG — a different matter.
In the accounts, a business-related tip is recorded together with the meal and, as part of the business hospitality costs, is likewise split into 70% deductible and 30% non-deductible. For the exact posting — e.g. under the German SKR03 or SKR04 charts of accounts — consult your tax adviser if in doubt.
If no confirmation can be obtained, a short self-issued receipt helps: date, place, recipient (restaurant), tip amount, reference to the meal, and a signature. For card payment, attach the statement.
If the entire restaurant invoice is missing, you need more than a tip note — then a template for the replacement hospitality receipt with all mandatory fields helps.
This article is not tax advice. Recognition is always decided case by case by the competent tax office (Finanzamt).
Around 5–10% of the bill is customary in Germany. That is custom, not a fixed legal limit — within this range the deduction is usually unproblematic.
For cash payment a confirmation is strongly recommended. For card payment the card receipt showing the total including the tip is often enough.
Tips to employees are tax-free under the conditions of Section 3 no. 51 EStG. For the host, however, the tip is part of the hospitality costs.
Yes. A self-issued receipt for the tip is acceptable; for card payment the statement should be attached.
As part of a business meal, the tip is likewise only 70% deductible.
Yes, with a self-issued receipt that is possible. A confirmation by the service staff directly on the bill is better, though — it carries more evidential weight.
No. A tip is given without any VAT being shown, so there is no input-VAT deduction on it. The input VAT from the restaurant invoice itself is unaffected.
With a short note directly on the bill — for example "Tip received: EUR 12" — plus a signature. The date and the link to the meal then follow from the bill itself.
Send a photo in chat. The details are captured. You receive your replacement hospitality receipt as a PDF.