Update
DPS Clarifies Tax Obligations for Cash Tips via QR-Code
The State Tax Service of Ukraine (DPS) has clarified that cash tips received by restaurant, cafe, and other establishments employees via QR-code or directly on a bank card are subject to taxation. The income from these tips is subject to a 18% personal income tax (PIT) and a 5% military tax. The DPS stated this on November 4th. The method of receiving tips does not affect the obligation to pay taxes, and the tax obligation is determined by who the funds are directed to—whether to the employee or the establishment. If the QR-code leads directly to the employee's bank card, the tips are considered the employee's personal income. The employee must declare and pay taxes on their own. If the tips are received through a payment terminal or on the establishment's account, the establishment reports the income to the tax authorities. Employees who receive tips directly on their cards do not need to submit a declaration for each transaction. The tax period is a calendar year, so they must declare these incomes once a year. For tips received in 2026, they must declare a tax return online through the Electronic Taxpayer Service. If the taxes on tips have already been collected by the establishment, the employee does not need to declare these tips separately. The DPS recommends employees to keep bank statements or maintain their own records to distinguish tips from other transactions, such as repayment of loans or money from relatives.