Start your culinary adventure: What you need to know to start a food truck

Why start a food truck?

 One of the biggest advantages of having a food truck is mobility. You can easily explore locations where you expect the most customers, and you are not dependent on the attraction of a fixed location. This dynamic environment allows you to respond directly to customer preferences and build personal relationships with a diverse audience. Additionally, the costs of starting and maintaining a food truck are often significantly lower than those of a traditional restaurant. This makes it an attractive option for budding entrepreneurs. Furthermore, a food truck offers the unique opportunity to present your culinary creations directly to customers, providing immediate feedback and the chance to make quick adjustments.

What do you need?

 Starting a food truck requires more than just a vehicle; it's a business that needs a solid foundation. At the core is an original idea that sets your food truck apart from the competition. This could be a unique menu, innovative service, or a special themed setup. Developing a solid business plan is crucial. This plan should include not only the financial aspects and expected revenue but also marketing strategies, growth objectives, and a detailed analysis of the target market.

Of course, the truck itself is important as well; it must be professionally equipped with the necessary kitchen equipment and adapted to the specific needs of your culinary offerings. It's also important to choose a reliable point-of-sale system, like Unipage, to efficiently handle orders and payments. With these components well-developed, you'll lay a solid foundation for a successful food truck business.

What permits do you need?

 To legally operate a food truck in Belgium, several specific permits are required. First, you must comply with food safety regulations, which require a hygiene certificate showing that your truck meets all health and safety standards. Additionally, you need to account for allergen legislation by clearly communicating which allergens your dishes contain.

If you plan to sell alcoholic beverages, a liquor license is essential. The fire safety of your food truck must also be ensured, which is demonstrated by a fire safety certificate.

Finally, if you plan to play music in your food truck, you need to arrange for music and copyright rights to avoid fines and legal issues. Each of these permits plays a crucial role in safely and legally operating your food truck on Belgian roads and at events.

What VAT regime applies to your food truck?

 The VAT rules for food trucks in Belgium have long been in a gray area due to the duality between restaurant services and meal delivery, each with a different VAT rate. Restaurant services, where meals are consumed on-site, fall under a VAT rate of 12%. In contrast, the delivery of meals without on-site consumption falls under a rate of 6%.

Determining the correct VAT rate depends on your specific situation:

Catering service at events

 If you're hired by, for example, a music festival or a private organization to provide food, and you invoice everything at once to the organization, you do not have a direct contractual relationship with the end consumers. In this case, you are considered a catering service, and you must apply a 12% VAT rate on your invoices to the organization.

Direct sales to consumers

 When each consumer pays directly at your food truck for their meal, there is a contractual relationship with the end consumer. Depending on the facilities you provide at your food truck, the VAT rate can vary:

• As a restaurant service: If you or the event organizer provide space (tables or standing areas) where consumers can consume their dishes, this is considered a restaurant service and is subject to a 12% VAT rate. This applies even if you have a mobile stand at a location such as a station.
• As meal delivery: If no specific space is provided for consumption, and you do not offer trays or other items that suggest on-site consumption, this is considered meal delivery, which falls under a VAT rate of 6%.

Specific situations like outdoor festivals

 At outdoor music and food truck festivals without indoor seating, where customers stand outside and eat, a 6% VAT rate generally applies unless there are indoor spaces with tables or standing tables where eating and drinking are allowed. In such cases, it would be considered a restaurant service and subject to a 12% VAT rate.

Navigating this regulation correctly requires clarity about the nature of your services and how you interact with your customers. It is essential to understand and apply these rules properly to comply with Belgian tax law.

Do you need a Registered Cash Register System (GKS) for a food truck?

 In the Belgian hospitality sector, including food trucks, the question of whether a Registered Cash Register System (GKS) or "white cash register" is required plays a key role. The white cash register is designed to ensure transparent reporting of revenue and is mandatory for hospitality businesses that generate more than €25,000 in annual revenue from restaurant services. This threshold also determines VAT liability; businesses that earn less than this threshold can apply for VAT exemption and are considered small enterprises.

Therefore, your food truck must acquire a GKS if the revenue from meals consumed on-site – which are sold at the 12% VAT rate – exceeds the €25,000 threshold. With a white cash register, it is necessary to provide each customer with a VAT receipt. This system not only helps ensure compliance with tax regulations but also offers a reliable way to accurately record and report revenue. You can find more information about a GKS here.

For food trucks that need to navigate these requirements, Unipage's white cash register makes things easier. Unipage's cash register systems are specifically designed to meet the needs of mobile hospitality businesses, seamlessly integrating GKS requirements with user-friendly interfaces and robust reporting features. This allows owners to work more efficiently and focus on providing quality service without worrying about tax compliance.

On the other hand, if a food truck only delivers meals that are not consumed on-site and thus fall under the 6% VAT rate, it is generally exempt from the requirement to use a GKS, as long as the annual revenue remains below €25,000. This distinction makes it crucial for food truck owners to accurately monitor their sales activities and the nature of their services to meet the correct tax obligations.

Would you like more information about a good cash register system? Read our blog post here.

Conclusion

 Starting a food truck is an adventurous way to explore and share your culinary passions with a wide audience. With the right preparation, essential necessities, and the necessary permits, you can build a successful and thriving business that is not only fulfilling but also financially attractive. Don’t be intimidated by the challenges; view them as opportunities to grow and excel in the dynamic world of mobile hospitality.

Would you like more information or a free quote? Feel free to contact one of our experts or request a demo below.