Regulated Establishments – Tax Measures Respecting Tips
The term “regulated establishment” refers to:
- a place situated in Québec that is specially laid out, where lodging, food, or both, are ordinarily provided in return for payment;
- a place situated in Québec where alcoholic beverages are sold for consumption on the premises;
- a train or a vessel used by an enterprise doing business entirely or almost entirely (90% or more) in Québec, and on which meals or beverages are served;
- a place situated in Québec where meals are sold for consumption elsewhere than on the premises, provided the meals are delivered or served by your staff in connection with the carrying on of your business.
The term “regulated establishment” does not refer to:
- a place situated in Québec that mainly provides lodging or food, or both, by the week, month or year in return for payment;
- a place operated by an educational institution, a hospital institution, a shelter for needy persons or victims of violence, or any similar establishment;
- a place operated by a charity or a similar organization, where food and beverages are occasionally served;
- a cafeteria;
- a fast-food outlet in which the employees do not ordinarily receive tips from the majority of customers.
In general, the following are regulated establishments:
- hotels, motels and inns;
- restaurants, bars and resto-bars (including those in sports complexes, arenas, gyms, etc.);
- sugar shacks serving food for consumption on the premises;
- campgrounds serving food for consumption on the premises; and
- establishments where food for consumption elsewhere is served by a caterer.
Boarding houses and seniors' residences are not usually considered regulated establishments.
Fast-food outlet
Fast-food outlets provide counter service (sometimes combined with table service) and offer a specialized menu of light meals for consumption on the premises or for takeout. They do not generally serve alcoholic beverages. Typically, they are situated in simply furnished premises designed specifically for this type of food service.