During the summer, many merchants and restaurateurs set up shop at occasional events, and some even sell only in such settings. Providing an invoice or receipt is still mandatory. The mandatory use of online cash registers at these occasional events and fairs depends on the statistical classification of the activity. We would like to draw your attention to a few important rules in this context.
In the context of the extension of the scope of those obliged to use cash registers in 2017, the interpretation of the provisions of Decree 48/2013 (XI. 15.) of the Ministry for National Economy on the Technical of Cash Registers and the Turnover, Use and Maintenance of Cash Registers Capable of Issuing Invoices and the Transfer of Data Recorded by Cash Registers to the Tax Authority (hereinafter: Cash Register Regulation) has changed, in that taxpayers carrying out activities under the relevant TEÁOR numbers listed in Annex 1 of the Cash Register Regulation, and thus obliged to use a cash register to issue receipts, are obliged to use a cash register to issue receipts in the course of their sales and services not only in shops and service points.
For this reason, the following should be taken into account as the main determining factor for the TEÁOR classification of the obligation to use cash registers at sales at occasional events and fairs.
Pursuant to Section 1 (2) b) of Government Decree No 55/2009 (III.13.) on fairs, markets and shopping centres, at a casual (festive) markets (at occasional fairs related to holidays, events, lasting up to 20 days, in justified cases up to 30 days), and at occasional event as defined in Section 28 (a) of Government Decree 210/2009 (IX. 29.) on the conditions for carrying out commercial activities, (an event, other than a regular event but consisting of certain festive or other occasions, at which the main purpose is not retail trade but it is connected with the event as a service and at which products related to the nature of the event are sold, including the occasional supply of food or drink at a place specified by the customer), retail sales are classified in sub-category TEÁOR ‘08 47.8 entitled “Retail sale in stores”, irrespective of the place of sale. This includes sales in public places. Given that this TEÁOR number is not included in the relevant Annex 1 of the Cash Register Regulation, which defines the activities subject to the obligation to provide a receipt by machine, providing cash register receipts is still not compulsory for the pursuit of these commercial activities, ie. retail sales at such places.
However, the sale of prepared food and beverages for sale on the move, for direct consumption or takeaway at occasional events is not classified as market retail trade, but the sale of food is classified in TEÁOR '08 56.1. Restaurants and mobile food service activities, whereas the sale of beverages is classified in TEÁOR ‘08 56.3 Beverage serving activities. With regard to catering activities at fairs, festivals and occasional events, only mobile catering can be exempted from the obligation to provide a receipt by machine, as the relevant annex to the Cash Register Regulation excludes mobile services from the scope of catering activities under TEÁOR '08 56.1 and 56.3.
An important condition for the classification of mobile catering is that the “catering unit" changes its location, i.e. it does not stay in one place for a long period of time, does not provide seating, and does not have table service. Ice cream trolleys, hot dog trolleys, drink trolleys and mobile pretzel vendors in continuous movement in the event area are considered mobile catering. Their point of sale varies according to the needs of the guests.
The sale of catering services at occasional events, fairs and village fairs is not considered to be mobile catering if they do not change their location at the event and stay at a fixed (rented) place, including the case where a catering service operated in a vehicle suitable for mobile use stays permanently at one place. These are not mobile catering services, so they are required to use a cash register when they are located at these places. Furthermore, if a catering establishment sets up at an occasional event or fair, in a place provided by the organiser, for example in a wooden hut, to prepare and serve food, this does not constitute mobile catering either, so they must also use a cash register to fulfil their obligation to issue receipts at this event or fair.
Taxable entities who, in addition to their permanent business, also set up at occasional events need only notify a change of location of the cash register if there is a permanent change of location. There is no obligation to notify a change of location for cash registers that are permanently operated in a shop and are also occasionally taken out for providing external service. Because of its temporary, transitory nature, an occasional relocation is not considered a permanent place of business, and therefore no notification is required for relocations to such a place.
If the taxpayer operating the cash register intends to use the online cash register exclusively at occasional events, fairs - relocations -, the application for the registration code for installation must indicate that he has a permanent place of business, the address of which must be the registered office.