You’ve bought the truck, the concept is in place – and now comes the bit that nobody likes doing. The good news is: there are fewer steps than most people fear, and the order in which you do them is crucial.
The first step
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Austria: the certificate of competence. The hospitality industry is one of the regulated trades. Eligibility can be demonstrated by passing a relevant apprenticeship final examination, a qualification examination at the Chamber of Commerce, or through several years of professional experience. Without it, the only option left is a Managing director under commercial law – a person with valid identification who is employed by the business.
The order
- Register a business at your local business registration office
- Tax office questionnaire Submit electronically via ELSTER within one month
- Health certificate at the Public Health Department
- Travelling Trade Licence, if you’re selling without a fixed location
- Health insurance inform
- Occupational Safety and Health Association Log in
- Business account Open
Step one first – many other steps require you to register your business.
Business registration
At the Trade Licensing Office – now available online in many local authorities. You’ll need your identity card and a description of your business activities.
| Details | |
|---|---|
| Costs | €20–60, depending on the local authority |
| Duration | usually immediately |
| Role | ‘Running a mobile food stall’ is sufficient |
Describe the role in broad terms. Anyone who registers to ‘sell burgers’ and then starts offering a catering service two years later will need to amend their registration. ‘Operation of a mobile snack bar, catering and party service’ covers more and doesn’t cost any more.
The questionnaire from the tax office
Don’t wait for a letter. You must generally submit the tax registration questionnaire electronically via ELSTER within one month of starting your business. This involves, amongst other things, clarifying VAT and profit calculation.
VAT and the small business threshold
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Small business owners or standard taxation
The small business scheme generally requires that the relevant turnover for the previous year does not exceed 25,000 euros and that turnover in the current year does not exceed 100,000 euros. In the year the business is set up, the limit of 25,000 euros applies. Exceeding these limits can have immediate tax consequences. Where the exemption applies, input VAT is generally not deductible.
| Small business owners | Standard taxation | |
|---|---|---|
| VAT on invoices | no | Yes, 7 per cent or 19 per cent |
| Input VAT on purchases | no | ja |
| Pre-registrations | Not applicable | monthly or quarterly |
| Scope of work | minor | noticeable |
Compare input VAT and final prices side by side. Whether standard taxation is more favourable depends on the purchase price, running costs and customer base. In the case of a private purchase or margin scheme, there is no separately deductible VAT. Opting out of the small business scheme commits you for at least five calendar years.
Apply for taxation on an actual basis
Under the ‘tax on supply’ regime, VAT generally becomes chargeable upon performance of the service. Special rules apply to advance payments. Where ‘tax on receipt’ has been authorised, the date of receipt of payment is generally decisive.
For catering businesses with payment terms, this makes a noticeable difference to cash flow. It must be applied for and is available for turnover of up to 800,000 euros – a box on the questionnaire that many people overlook.
Health certificate
Formally, this is known as the training required under Section 43 of the Infection Protection Act. Without it, you are not permitted to handle food – and anyone working with you must also have completed it.
- At the Public Health Authority or with authorised doctors
- Cost: €20–40
- Duration: one hour; can often be done online
- Upon commencement of employment and every two years thereafter: documented induction by the employer
Travelling Trade Licence
Under Section 55 of the Trade Regulation Act (GewO), you need one if you’re selling on the move without a fixed sales outlet. This usually applies to a food truck that travels to different locations.
| Details | |
|---|---|
| Costs | €200–700, depending on the federal state |
| Duration | 4–8 weeks |
| Documents | Certificate of good conduct, extract from the Central Trade Register, clearance certificate from the tax office |
Apply early. The application process often takes longer than converting the truck. Anyone who only applies two weeks before their first booking will be left without a licence – and without it, selling food is an administrative offence.
Social security and accident insurance
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Health insurance
As a self-employed person, you pay your contributions yourself. The minimum contribution is around 250 euros a month, even if you don’t earn much.
If you start a side business whilst remaining in paid employment, you may be able to stay on the employees’ insurance scheme – this depends on whether your self-employment is your ‘main occupation’. A quick call to your health insurance provider beforehand can save you from having to make back payments.
Occupational Safety and Health Association
The BGN (Occupational Safety and Health Association for the Food and Hospitality Industry) is responsible. Registration is compulsory and must take place within one week of commencing operations.
Insurance is usually optional for you personally, but compulsory for every employee – including temporary staff working for just a single festival weekend.
Business account
Legally mandatory only for limited companies. In practice, there’s no getting round it: anyone who mixes personal and business finances will run into problems at the first tax audit – and face extra work with every tax return.
Total cost
| Posts | Costs |
|---|---|
| Business registration | 20 – 60 € |
| Health certificate | 20 – 40 € |
| Travelling Trade Licence | 200 – 700 € |
| Certificate of good conduct and extracts | 30 – 50 € |
| Initial consultation with a tax adviser | 150 – 400 € |
| Together | 420 – 1.250 € |
Also ongoing: health insurance, contributions to the employers’ liability insurance scheme, tax advice. And the Chamber of Commerce and Industry, whose membership fee is usually waived in the first year.
How much time you should allow
Registering a business and obtaining a health certificate takes just a few days. The itinerant trade licence takes weeks, as does the gas inspection for the food truck. Anyone wanting to start in the spring should begin in January – not in March.
An appointment with a tax adviser before registering the business is money well spent. Voluntarily opting out of the small business scheme commits you for at least five calendar years. To make this decision, you’ll need a robust turnover and cost plan.