Tipping and the 15% HST in St. John's: how to read a restaurant bill

Visitors to St. John's are often surprised twice when the bill arrives. First by the tax, which in Newfoundland and Labrador adds 15 percent to almost everything. Then by the card machine, which asks how much you want to tip, sometimes with options that look high. Neither is a trick. Once you know how it works, it takes a few seconds.

What is the HST in Newfoundland and Labrador?

The Harmonized Sales Tax (HST) combines the 5 percent federal GST and a 10 percent provincial portion into one tax of 15 percent. Menu prices in Canada usually do not include tax, so the HST is added at the end. For example, a meal priced at 40 dollars on the menu comes to 46 dollars before any tip.

How much should you tip at a restaurant in St. John's?

For table service at a sit-down restaurant, a tip of around 15 to 20 percent of the bill is normal in Canada, including in Newfoundland:

• 15 percent for good, standard service
• 18 to 20 percent for very good service
• More if the service was exceptional or the group was large and demanding

Many people tip on the amount before tax, which is fair and common.

How do you work out a tip quickly?

A simple method: find 10 percent of the pre-tax bill by moving the decimal point one place, then add half again for 15 percent, or double it for 20 percent. For example, on a 60 dollar pre-tax bill, 10 percent is 6 dollars, so 15 percent is 9 dollars and 20 percent is 12 dollars.

Why do card machines suggest such high tips?

Card machines often show preset buttons, and some calculate them on the total after tax, which makes each suggestion a little larger. You can always choose a custom amount instead. Pressing the button you are comfortable with is perfectly acceptable.

Do you tip at a café or takeout counter?

Tipping at a counter is optional. Many people leave a small tip, such as rounding up or a dollar or two, for coffee or takeout, especially if the staff made something special. Nobody expects 15 percent for a muffin handed over a counter.

Do you tip at a pub or bar?

For table service at a pub, tip as you would at a restaurant. At the bar, a dollar or two per drink, or 15 percent of a tab, is common.

What happens to tips in Newfoundland and Labrador?

Under the province's labour standards, tips belong to the employees who earn them, and employers may not keep them. Many restaurants share tips among the team, including the kitchen. So your tip goes to the people who served and cooked for you.

What about automatic gratuities for large groups?

Some restaurants add an automatic gratuity for large groups, often parties of six or eight or more. It should be shown on the menu or explained when you book. If it is on your bill, you do not need to tip again, though you can add more for great service.

Should you tip if the service was poor?

Tipping is customary, but it is meant to reflect the service. If something went wrong, the best first step is to tell the server or manager, who may be able to fix it. If service was genuinely poor, a smaller tip is understood, but remember that the kitchen and other staff may share in it.

Is tipping different for visitors from outside Canada?

No, the custom is the same for everybody, but it helps to know that servers in Canada rely on tips as a real part of their pay, even though they also earn wages under provincial rules. Visitors from countries where service is included in the price sometimes leave little or nothing without meaning any offence. If you are unsure, ask your server politely whether service is included. In most restaurants it will not be, unless you are in a large group.

How do you split the bill with a group?

Ask for separate bills before ordering if you can; many restaurants are happy to split by seat, but it is easier for everyone if they know in advance. If you are paying together, agree on the tip before the card machine comes round.

Is there tax on groceries and takeout in Newfoundland and Labrador?

Basic groceries, such as most fresh produce, bread, milk and meat bought to cook at home, are generally zero-rated, so no HST is added. Prepared food is different: restaurant meals, takeout, hot food and snacks are generally taxable, so the 15 percent HST is added at the till.

That is why a bakery bill can surprise you. A loaf of bread to take home may carry no tax, while a single heated sandwich does. The rules have fine print, so if a receipt confuses you, ask the cashier. It is almost always the till doing exactly what the rules require.

How can Mosey help when you are planning a meal?

Knowing the real cost of a meal starts with knowing what people actually ordered and how they rated it. Mosey lets you rate the places you ate at and the dishes you ordered, see where friends you follow went, and keep a list of places that offered good value, so your next meal out holds no surprises.

More guides to read next:

• Brunch in St. John's: toutons, fish cakes and weekend lines
• Toutons in St. John's: Newfoundland's fried bread and where to find it
• Traditional Newfoundland dishes to try in St. John's

More in the Canadian food guides and the ranked lists of places.