It is "increasingly common" for restaurants to offer two payment options for the bill, one that includes the value of the meal and another that adds a percentage of tip or gratuity. This is according to DECO PROTeste, highlighting that "service gratuities are not mandatory in Portugal."

This means that the decision to leave a tip or not is always up to the customer: "It is your decision if they present you with a bill with two amounts".

"The Portuguese Hotel, Restaurant and Similar Association (AHRESP) even states that 'it is not considered good practice for the establishment to suggest a tip by including it on the cash register receipt or price list'. The consumer has this option if they are pleased with the quality of the meal and the service. In this case, they can pay in cash or via ATM", explains the consumer protection organisation.

Does it appear on the bill?

No, the "reference to the tip does not oblige the consumer to pay it". Therefore, "if you pay with a bank card, check the amount entered on the device before paying, to confirm whether the amount includes the tip or not".

"If the establishment insists on paying the tip, the customer can always file a complaint. In this case, it is better to opt for the electronic complaints book. In extreme cases, it may even be necessary to appeal to the authorities", explains the organisation.

Tipping is not mandatory in Portugal, but "if a restaurant determines a tip amount in its price list, the customer has no alternative but to pay it".

"Restaurants that choose to set a certain amount for the service provided, which is equivalent to a gratuity, must state this amount in the price list, displaying it in a visible place. The customer has the right to be informed in advance and clearly about what they will have to pay", explains DECO PROTeste.

"It is important to distinguish whether the tip is included in the price, in which case the consumer must pay for this service, or whether this amount is not included (as is the case in most restaurants), in which case there are no mandatory amounts".

The organisation also explains that the "obligation to include tips on the invoice is a way of controlling their receipt and allowing their withholding at source".

"To ensure that they are taxed, tips must be duly documented on the invoice, and it is up to the employer to determine the amounts received as a bonus and distribute them among the respective employees. This procedure should allow the identification, quantification and control of the amounts in question", it points out.

It is also important to emphasise that "tips are subject to IRS because they are considered income from dependent employment", and that "the IRS Code states that income from dependent employment is considered to be 'bonuses received for the provision or by reason of the provision of work, when not granted by the respective employer'".

"Gratuities not granted by the employer are considered dependent work, because the motivation for granting them lies in the provision of work of this nature. Gratuities are subject to autonomous taxation at a rate of 10%", concludes DECO PROTeste.