In Canada, tipping is more than just a custom—it’s a well-established social norm that reflects appreciation for good service. Traditionally and legally, gratuities (tips) have been calculated on the pre-tax subtotal. This approach helps prevent tipping from being unintentionally inflated by added taxes.

However, an increasing number of merchants are calculating tips based on the total bill, which includes tax. This practice often results in consumers paying more than they intended. Currently, the Federal Goods and Services Tax (GST) is set at 5%. When merchants include this tax in the tip calculations, the tip amount is higher than the customers might realize.

After visiting various restaurants and cafes, the organizer of this petition discovered that only one out of many establishments calculates tips based on the pre-tax amount. Most merchants use point-of-sale (POS) systems like Square or Clover, which have the option to calculate tips either before or after tax. Despite this functionality, many businesses still choose to include the tax amount when calculating tips. We believe that this practice is unfair to consumers and goes against the original purpose of tipping. 

We urge all Canadian merchants to:

·       Set up their point-of-sale (POS) systems to calculate tips based on the pre-tax subtotal. 

·       Clearly disclose how tips are calculated at the point of payment.

·       Respect consumer awareness and choice regarding how they reward service.

We encourage fellow consumers to: 

·       Share your experiences with tipping practices. 

·       Politely inquire with businesses about how they calculate tips. 

·       Support businesses that maintain fair and transparent tipping methods. 

Let's collaborate to ensure that tipping in Canada is fair and honest for consumers.

Estrella Shen