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Profit from a pop-up restaurant is taxable income

Do you operate a temporary pop-up restaurant during Restaurant Day or other such event? Even if you are not operating professionally, the income you receive is taxable earned income. However, you can deduct the expenses for the operation of the restaurant from the income, such as the foodstuffs you have bought for the operation.

Keep records of your income and expenses, and report your profits on your tax return in the section Other earned income.

File your income in MyTax.

Operating a pop-up restaurant may be a professional business activity

If you start operating on a more regular basis and your turnover increases, your pop-up restaurant may be regarded as a professional business activity. In that case, you must report your income by filing a business tax return. Read more about registering a business and managing its taxes.

If your turnover exceeds €15,000 in an accounting period, you must also register for VAT. Read more about VAT for small business.

Estimate your turnover and remember VAT liability

If operating a restaurant turns into business and your turnover exceeds €15,000 in an accounting period, you must pay VAT. In that case, enter your business in the VAT register.

Make a realistic estimate of whether your turnover will exceed €15,000. If you have initially estimated that your turnover will not reach the €15,000 threshold and yet it does, you must pay VAT retroactively on all the income received during the accounting period. Request entry into the VAT register as soon as you notice your income will reach the €15,000 threshold. We will then enter you into the VAT register retroactively.

Read more about VAT for small business. The instructions also describe situations where you can request entry into the VAT register even with a smaller turnover.

Page last updated 1/1/2021