Quebec’s Bill 72: What Businesses Need to Know About Tip Calculations

New rules for calculating tips in Quebec are changing how businesses process gratuities. Here’s what you need to know to stay compliant and simplify the payment experience for your customers.

For restaurants, cafés, bars, beauty salons and other service-based businesses, tipping is part of everyday transactions. But in Quebec, the rules governing how tips are calculated have changed.

Since May 7, 2025, Bill 72 requires suggested tip percentages to be calculated on the pre-tax transaction amount, rather than the total including taxes.

The goal? Greater transparency, fairer tipping practices and a clearer payment experience for consumers.

What is Bill 72?

Bill 72 is a Quebec law designed to strengthen consumer protection and pricing transparency. Among its provisions are new requirements for businesses that suggest tip amounts through electronic payment terminals.

Previously, many payment terminals calculated suggested tips on the total transaction amount, including GST and QST. Under the new rules, suggested tip percentages must be calculated before taxes.

Businesses must also allow customers to freely choose their tip amount, without pressure or misleading suggestions.

How does Bill 72 affect your business?

If your business accepts tips through a payment terminal, your payment system must comply with the new requirements.

Here’s what this means in practice:

• Pre-tax tip calculations: Suggested tip percentages must be calculated on the transaction amount before GST and QST.
• Clear tipping options: Customers must be able to easily understand how suggested tips are calculated.
• Freedom of choice: Customers must be able to select a different tip amount or choose not to leave a tip.
• Compliant payment terminals: Your terminal’s software and tipping interface must meet the new requirements.

These changes are particularly relevant to restaurants, hotels, beauty salons and other businesses that regularly accept electronic tips.

What difference does it make? Let’s look at an example.

Consider a restaurant bill of $100 before taxes. Here’s how a 15% tip compares under the two calculation methods.

In this example, the customer saves $2.25 on a suggested 15% tip. For businesses, the change promotes greater consistency and transparency in how tips are presented.

Is your payment terminal compliant?

Depending on your payment terminal and its current configuration, a software update may be required to ensure compliance.

At PandaPay, we’re committed to helping businesses adapt to regulatory changes with confidence. Our payment solutions support pre-tax tip calculations, allowing you to offer a simple, transparent and compliant checkout experience.

Not sure if your terminal is properly configured? Our team can help you review your tipping settings and determine whether any adjustments are needed.

A better payment experience for everyone

Bill 72 goes beyond a simple change in how tips are calculated. It reflects growing consumer expectations for transparency in every transaction.

For businesses, ensuring compliance is an opportunity to build customer trust, eliminate confusion at checkout and deliver a better payment experience.

Need help ?

PandaPay is here to help you keep your payment solutions up to date.

Contact our team to make sure your payment terminal is compliant.