What is a stall sale?
If we were to look at what all actually qualifies as a stall sale, then we would say that it is a way of doing business where you sell goods or services from a mobile or portable device. Typically, it’s a wooden stand, a folding table, a trailer, a car, a food truck, or even a blanket on the ground. Although the blanket on the ground is more of a showcase for illegal sales.
Anything where you offer something in public, for a fee, and outside of a brick-and-mortar store is in the zone called a stall sale. This includes food sales, craft sales, seasonal sales, sales at markets and fairs, or regular sales from a vehicle.
Who can run a stall?
Stall selling certainly does not fall under the “one-off home baking for friends” exemption, it is not a casual income but a business. So yes, if you want to run a stall you must be an entrepreneur or have a business license.
You can set up a company and do business as a legal entity, or you can take the simpler route as a self-employed person. For stall selling, the most common form of business is self-employed. Typically, stall sellers have a registered free trade “production, trade and services not listed in Annexes 1 to 3 of the Trade Licensing Act”. This includes, for example, the sale of refreshments, handmade items or clothing.
So whether you’re a mum on parental leave, a skilled pensioner with artistic flair, or if you sell repeatedly and profitably, you need a trade licence. Within 15 days of starting your business, you must register with the tax office as an income tax payer and keep basic records of your sales and expenses. And if you exceed a turnover of CZK 2 million in 12 consecutive months, you must also register for VAT.
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Are you solving a problem because of a stall sale?
Whether you are facing a fine or a charge, you can contact us. We can help you. Likewise, if you’re just getting started in mobile vending but need some questions answered.
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Attention to the establishment declaration
Every entrepreneur must state where he carries out his business. Although as a stallholder you are unlikely to have a traditional premises such as a shop or office, you must nevertheless list a mobile premises if you sell from a stall.
A mobile establishment under the Trade Licensing Act is a place of business that is not permanent and does not have a fixed location, so typically a market stall, mobile wagon or similar.
When reporting a mobile establishment to the trade licensing office, you must indicate the type of establishment (mobile), the expected places and times of sale (for example, “Brno City Market – Zelný trh, every Monday”), the designation of the establishment (name, ID number) and the person responsible.
You can operate several mobile establishments at the same time, but you must report each of them separately.
Can I stand wherever I want?
If you want to sell on a street or square without permission, it’s roughly the same as pitching a tent in someone else’s garden. If you want to set up a stall in a public place then you must have permission to occupy a public space. A public space is defined as a square, a pavement, a park, a market place and a road, in short anything that belongs to the municipality or the state and is open to the public.
To obtain an encroachment, you must file an application with the relevant municipal or city office. You must specify the exact location, date, size of the stall and the purpose of the encroachment. Based on this application, the authority will decide whether to grant you the occupation. At the same time, you should expect to pay a fee (usually depending on the size of the stand, a certain amount per day of occupation) for the occupation of the public space.
Some municipalities provide the option to fill in the form online, others want a paper application. Some also only allow stalls in designated areas, so always check first and make arrangements in advance.
But sometimes it’s not just about the municipality. If you want to sell in a shopping centre, for example, then you need to get the permission of the owner of the building. If you want to sell at a train station, you need to contact the Railway Authority. For cultural events, the organisers are in charge and you have to sort out all the paperwork with them. In these cases, you usually sign a stall rental agreement, which sets out the fee (rent), the rules for sales, opening hours and health and safety conditions.
What does the hygiene department have to approve?
The golden rule is that what cannot be preserved must be approved by the hygiene. This means that durable products that are preserved or otherwise stabilised (dried, fermented, etc.) do not need to have such strict hygiene supervision because they do not present an acute health risk. However, if you want to sell sandwiches, soups, meat, dairy products, salads, cakes and anything else fresh, chilled or hot, then you need to get prior approval from the hygiene department.
You must register the place where you will prepare and sell the food with the Regional Sanitary Station in advance – if you prepare food elsewhere than you sell it, you must also have an approved premises. You must do this at least 30 days in advance. The Hygiene Authority can inspect the premises and decide whether the premises meet hygiene standards.
You will need to show that you are using drinking water, dealing with waste disposal hygienically(fats, food scraps, waste water etc), checking temperatures (have thermometers in fridges, dispensing points) and keeping surfaces, hands and clothing clean.
If you sell meat, milk, eggs, fish, cheese, yoghurt or other animal products, you must also report this to the State Veterinary Administration. They check the origin of the raw materials (you must have proof of where the meat or milk comes from), their storage and the labelling of each product.
Don’t forget to label your stall
Make sure it is visible enough so that no one can attack it. Under the Consumer Protection Act, every stall must be visibly marked with your business name, registration number, registered office (for a legal entity) or place of business (for an individual) and contact details. The customer has the right to know who is selling the product. You can be fined heavily for not having a marked stand.
What obligations do I have to my customers?
Unless you are a street magician who disappears with your wallet in your pocket, you must also comply with the basic rules of consumer protection when selling from a stall. You have a duty to:
- Quote the correct price (including VAT if you are a taxpayer).
- Provide the customer with proof of purchase.
- Allow complaints (Even at markets!).
- Keep a simple price list.
Stall selling is a lovely way to get in front of people, show what you can do and maybe even make your dream of running your own business come true. With a little bit of administration and planning, you can avoid the hassle and concentrate fully on what you do best – producing, selling and making people happy. If you’re not sure if you’ve got everything set up right, don’t hesitate to contact us. Sometimes all it takes is a short consultation to give you the peace of mind to focus on your customers.
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Summary
Stall vending means doing business away from a brick-and-mortar establishment – perhaps from a stand, food truck or car – and requires a trade licence, registration with the tax office and VAT registration if applicable. Each stall (mobile establishment) must be reported to the trade office, stating the location, time and other details. To sell in a public space, a permit for the occupation is required and a fee must be paid. Hygiene requirements vary according to the type of goods sold – non-perishable foodstuffs have a lighter regime, fresh and animal products must be approved by the hygiene and possibly veterinary authorities. The stall must be visibly labelled with business information and the seller has to comply with consumer protection rules, including issuing receipts, correct price labelling and the possibility of complaints.