Guideline for food couriers

Working as a food courier in Hungary become really popular since the pandemic.
In this article, we will show you what administration needs to be covered in order to keep your business „clean” as a food courier.

Wolt and Foodpanda are working with Courier Partners instead of employing individuals which gives more flexibility to couriers than ever. Besides earning money by delivering orders to local customers, you set your own schedule, so you deliver when and where you want. Unlike full-time or part-time jobs, you decided your own hours. The more you deliver, the more money you can earn. Of course, everything has pros and cons, there is no difference in this situation too. In order to sign a contract with these companies and start working as a courier, you will need to set up sole entrepreneurship first. 

Step#1: Preparations

The very first step is to have all the credentials necessary to create your business entity.

• Permit: If you are not a Hungarian citizen then you must have a proper residency permit to start the process.
• Ugyfelkapu: This is the government’s electronic identification system, which ensures that users can contact the bodies providing electronic administration and services with a single login. This login will allow you and your accountant to ensure all administration-related obligations online.
  You can register an Ugyfelkapu login by visiting any „Kormányablak” office.
• Tax ID: The tax identification number must be added. If you do not have one, you should visit a NAV office or consult with your accountant.
• TAJ number: This is not a mandatory credential for starting the business but it will be essential later on when declaring the taxes among social contributions.
• Seat: The seat is the registered address of the sole entrepreneur. This functions as your mailing address, the place where your business-related documents are received, delivered and kept. Nowadays it is more like a formality, given that the administration works electronically. You can use your own flat or any kind of place as well if you have written permission from the owner. 
• Status: Very important to decide before registration whether you will be a full-time or a part-time entrepreneur due to your current personal situation. This can have a huge impact on your monthly taxes. Active student status, more than 36 hours/week employment, and pension allow you to be a part-time entrepreneur otherwise you must select full-time. Of course, if the situation changes in the future, it is possible to switch from full-time to part-time or vice versa.

Step#2: Setting up the business

Once all credentials are ready, you can set up your sole entrepreneurship online by clicking on this LINK. 

During the registration, the credentials mentioned in Step#1 should be added and some tax-related declarations must be filled in. After the registration you are obligated to cover the following:

• settle your social security status towards NEAK
• login your business to the Hungarian Chamber of Commerce and pay the annual 5,000 HUF contribution within 15 days
• login your business to the IPA (local government) tax

Please kindly note, if you miss filling or filling any of these forms incorrectly, then you can easily cause relevant issues that might not be undone. Therefore, we highly recommend working with an accountant when it comes to setting up a business!

Step#3: Sign the contract agreement with the Company

When you received all documents after the business’ registration, you can simply fill out the form of the chosen food company and add the details of your business. You can also ask for support from their customer service or your accountant if you encounter any obstacles.

Step#4: Add NAV API keys to the Company

The very last step before starting to work is to add NAV API keys to your account at the food company. This will allow the Company to issue invoices on behalf of your name, so you don’t have to deal with invoices after each delivery. API keys can be generated online by clicking on this LINK

Step#5: Working and ensuring continous obligations

Now everything has been set up and you are free to work as a food courier but don’t forget about the taxes and administration required by the authorities! Please kindly note, that as a sole entrepreneur, you are obligated to record your income and submit different declarations continuously where you should inform the bodies about your received income and calculated taxes.

Fulfilling all obligations can be complex if you are not familiar with the tax system, therefore, we highly recommend working with an accountant to keep your business safe and clean!