New tipping rule for bars and restaurants takes effect May 7

New tipping rules are coming to Quebec for bars and restaurants, meaning adjustments needed.

It’s long been a source of frustration for Quebec consumers: bars and restaurants calculating tips on the total bill, including tax. However, the provincial government has stepped in to change that.

The new law takes effect next month, and bar and restaurant owners—like Ted Dranias of Petros Taverna—will have to adjust.

“The tip is before tax. And all of the customers have to understand that it wasn’t like that before. And that’s the new way of doing business.” Dranias explained.

That means his payment system providers have to update their terminals which he said would happen within the next two to three weeks.

Those point-of-sale machines are rented from payment companies.

Renaud Poulin of the Quebec Bar Owners Association said those companies are now responsible for reprograming the new calculations into their machines.

“They know the law, they know the date,” Poulin said.

He added that the May 7 deadline should be respected by all merchants, and only those with outdated equipment will need to replace them—most others can simply update their systems.

Back at Petros, Dranias said good service is worth a tip. “I think it’s a fair rate between 18 and 20 [per cent].”

Poulin added that the new system clarifies the tip amount to the client as it won’t include the GST and QST.