On 1 January 2024, Croatia started applying a new model of fiscalisation of tips, and the novelty is that it will be possible to pay tips on a credit card, too, apart from paying it in cash.

The non-taxable amount is fixed at €3,360 per annum per employee, while the amount of the tip above the non-taxable amount will be taxed at 20%.

The association of hospitality businesses within the Croatian Chamber of Commerce (HGK) said on Tuesday that it strongly advocated on the implementation of this model of the fiscalisation of tips, and this was implemented with the latest round of tax reforms, which went into force on 1 January.

Amounts paid by credit cards in the hospitality sector amount to 80% of paid bills, and now tipping on a credit card is possible, said Andreja Vukojevic of the HGK.

This is a stimulating move for the sector of cafes and restaurants, ad also a very positive thing for attracting and retaining workers in the sector, she said.

The HGK says that bills issued for the service do not specify the amount of tips. All the rules applied for the issuance of bills are also applied for reporting a tip.