In the application for registration of an individual entrepreneur or company, their future business directions are indicated. They are designated by codes of 4 characters. The list of such ciphers is established in OKVED. This collection is constantly undergoing changes, additions are made to it. The classifier defines numerical values for each business area that operates within the borders of the Russian Federation. For the convenience of users, the classifier is divided into groups and subgroups, each of them specializes in certain economic areas.
Choice of activity
The applicant, before submitting acts for registration, must decide on the types of entrepreneurship according to the OKVED directory. Each sector of the functioning of the individual entrepreneur and organization is assigned its own code here. OKVED is required by the state to establish the scope of work of a company or individual entrepreneur.
The number of activities that can be defined in the appeal is not limited by law. The entrepreneur has the right to declare each code at his own request. Therefore, the application usually indicates different ciphers. It is recommended to limit yourself to 20-30 codes. A voluminous list will create confusion and make it difficult to assess the scope of the company or individual entrepreneur.
Among other codes, you must choose one that is recognized as the main one.
Meaning of the main code
Information on OKVED codes, basic and additional, is recorded in the Unified State Register of Legal Entities, EGRIP, an extract from the register and an information letter. Ciphers are required for statistical reporting.
OKVED codes will be useful to an entrepreneur when registering with the MHIF, opening a current account in some credit institutions.
According to the law, entrepreneurs can profit from any area of non-prohibited activities. If an entrepreneur chooses "extra" codes, it's not scary. The priority direction of activity is another matter.
The main activity is the line of work that brings the company or individual entrepreneur the predominant amount of revenue. The code of the prevailing type of business should describe the future sphere of economic activity of the applicant as accurately as possible.
The choice of the main direction of activity entails certain consequences. For example, this will affect the rate that determines the amount of premiums for insurance against accidents and occupational diseases. Agreed tariffs are used depending on the main activity. If the choice of an individual entrepreneur or LLC fell on risky activities (traumatic or causing the development of occupational diseases), then the amount of insurance payments will become higher.
OKVED codes are also associated with taxation. Special modes, for example, simplified tax system, PSN, UTII have restrictions on the types of functioning. So, there can be a conflict of interest. An organization or individual entrepreneur wishes to choose any of the preferential taxation systems, but it does not apply to activities whose code is indicated in the extract from the Unified State Register of Legal Entities or EGRIP. In such a situation, you will have to choose - either the desired tax system, or OKVED.
So, if an entrepreneur wants to engage in insurance activities, the production of excisable goods or mining, then he will not be able to work on the simplified tax system.
UTII and PSN are systems that not every individual entrepreneur and company has the right to choose, but only those that work in certain market sectors. There are no restrictions only for OSNO.
The selected OKVED affects not only the taxation system, the amount of tax, the amount of reporting submitted to state bodies. It plays a role if the IP employs employees. The rate of contributions to the Social Insurance Fund "for injuries" is calculated based on the tariffs for the main type of functioning.
The main code OKVED and UTII
The code plays a role in the taxation of the single tax on imputed income. Thus, an entrepreneur is exempted from the obligation to submit “zero” UTII reports if he does not actually carry out the type of activity that falls under this system.
The obligation to report arises when an individual entrepreneur or organization begins to work in this sector. Be sure to submit to the tax office an application for registration as a UTII payer.
Confirmation of the main business area in the FSS
Employees registered for the performance of their duties on the basis of an employment agreement are subject to compulsory social insurance against industrial accidents and occupational diseases. This norm is enshrined in the Federal Law No. 125. The fee is paid every month. The calculation is based on tariffs, which are determined by the class of occupational risk.
For each company, the size is approved annually based on information provided by the firm. The process of information transfer is defined in the Procedure for confirming the main type of economic activity, approved by Order No. 55.
For the purposes of the FSS, the main type of functioning is recognized as the type of functioning from which the highest income was acquired over the past reporting period. If the actual predominant line of business and income is not reported within the set period, then the calculation is based on high tariffs for the types of activities that are determined for the company, even if there is no business in this direction. Thus, "extra" codes can play a role and be unnecessary.
For the purposes of calculating the insurance premium, specific criteria for the approval of the main type of operation have been established:
- for commercial companies - the overwhelming share in the total volume of goods produced or sold;
- for non-profit firms - the prevailing number of employees working in a particular industry.
Work in the prevailing area of activity is confirmed every year - until April 15th. Companies that attract employees submit acts to the FSS that for certain testify to the predominance of one of the business areas. Organizations are required to report annually. For entrepreneurs, this obligation arises when the key activity is transformed.
The rate is approved by the Social Insurance Fund. It can be - 0.2 to 8.5%, depending on the class of occupational risk.
Confirmation of the prevailing type is distinguished by its features if the insured conducts business in several sectors of the economy at once.
In this case, there are two options:
- The share of one area of activity prevails over others: the occupational risk class corresponding to this area is taken into account in the calculations.
- The types of activities are equivalent in the total mass: for the purposes of calculating the insurance premium, the one from the areas of functioning that is characterized by the highest class of occupational risk is taken.
Not confirming the predominant business area is not at all a reasonable decision, since the entrepreneur will have to bear the unnecessary costs of insurance premiums at the highest rate.
To confirm the main type of business, LLCs are required to submit the following documentation to the FSS:
- application in the form determined by the legislator;
- confirmation certificate;
- an explanatory note to the balance sheet (exception: not required for small businesses).
The calculation of profit is carried out according to the formula approved by the legislator: the proceeds after the sale in a particular direction are divided by the total profit from all sectors of the market. The result is multiplied by 100%.
Activities with a prevailing share are the main ones for the company in this reporting period.
Calculation example:
Mir Prokata specializes in 2 types of activities - film rental and video copying. The total profit for the previous period amounted to 1.5 million rubles. Of these, for the first type - 500 thousand rubles, and for the second - 1 million rubles.
We calculate the specific gravity using the above formula:
- for rental - 500000/1500000*100% = 33%
- for copying - 1000000/1500000*100% = 67%
The data obtained indicate that the second direction of the company's work brings it more significant revenue, and therefore, the occupational risk class is calculated according to the tariff approved for the corresponding OKVED code.
We remind you that entrepreneurs who have chosen the simplified tax system also make payments for injuries. The specified category of payers must also confirm the prevailing type of activity.
The legislator provided exceptions for some entrepreneurs.
- Individual entrepreneurs (submit a written request and the required documentation to the FSS if they change the main type of activity);
- Newly formed firms that operate for less than a year.
Companies and individual entrepreneurs are notified of the established tariff no later than 14 days from the date of transfer of the documentation. The notification form is approved by the legislator. Up to this point, payments are accrued at the rates that were in effect in the previous period.
An ambiguous situation arises when an LLC or individual entrepreneur has transformed the predominant business area during the year. The legislator established that in such a situation the tariff would not be revised. Changes will follow only next year.
Some entrepreneurs try to avoid unnecessary expenses by confirming in the FSS a type of activity with a low level of insurance payments. This trick is easily detected, since businessmen are required to transfer, in addition to other documentation, a balance sheet.
Changing the main OKVED code
Code conversion may be necessary as a result of the operation of the enterprise. For example, a company wants to change specialization and expand production in another market sector.
The procedure for changing codes is different for individual entrepreneurs and LLCs. In the latter case, it is required to additionally make changes to the constituent documentation of the company, when specific sectors of functioning for the organization are prescribed in it. In addition, only the head of the company has the right to act on behalf of the company. The appeal and acts must be certified by a notary.
To change the main code, the businessman submits an application to the tax office:
- title page (clause 1.1, 1.2, 1.3) - in clause 2, the number 1 is affixed;
- sheet H (p. 1) - clause 1.1 - updated OKVED;
- sheet H (p. 2) - p. 2.1 - the main cipher to be eliminated;
- sheet P - data on the applicant.
Other ciphers do not need to be entered in the application. Numbers are entered from left to right from the first cell. The code consists of 4 characters. This requirement is specified by the legislator.
The choice of OKVED for an individual entrepreneur or LLC is one of the first tasks that must be completed when registering a business. How to do this, we will tell in this article, but first a little theory.
The All-Russian classifier of types of economic activity is needed to systematize information about enterprises and individual entrepreneurs. The OKVED list is the same for all organizations and individual entrepreneurs, does not depend on the taxation system, form of ownership and income level.
With the help of OKVED:
Statistical bodies collect and organize information about organizations and individual entrepreneurs;
The tax authorities determine the procedure and amount of their taxation;
Supervisory agencies legally regulate their activities.
Each type of activity in the classifier has its own code from 2 to 6 digits.
Since July 11, 2016, a new classifier has been in force for individual entrepreneurs and enterprises - OKVED-2 (version OK 029-2014 (NACE Rev. 2)), approved by order of Rosstandart N 14-st of 01/31/2014. It consists of 21 sections. Each section defines a separate economic area.
Example: Section H - transport and storage.
The first two digits of the code are classes:
Class 50 in section H - activities of water transport.
50.10 - activities of maritime passenger transport.
The following are sub-groups that further specify the activity:
50.10.1 - transportation of passengers by sea vessels of foreign navigation.
The last, sixth sign determines the type:
10/50/11 - transportation of passengers by sea vessels of foreign navigation, subject to the schedule.
You can select and register codes of 4 or more characters. It is better not to specify too much, so that later there will be no problems if you change or expand the direction of your activity a little. In the above example, it is advisable to choose code 50.10, then the entrepreneur or company will be able to transport passengers both on ships in coastal waters and in sea, and on ferries, on schedule and without, etc. And you don’t have to make changes to OKVED every time.
Selection of OKVED codes for individual entrepreneurs and LLCs in 2018
The OKVED code must be selected independently from the classifier when registering an individual entrepreneur or organization. It is necessary to determine one main type of activity and additional ones - there can be as many as you like. The main activity is considered to be the one that will bring more income. The activity prescribed in the Charter of the organization must correspond to the chosen type in OKVED.
Tip: think about what else you can do in the future and immediately list these activities. This will save you the hassle.
Theoretically, you can specify at least the entire list from the classifier as additional types, but keep in mind that:
1. Some types of OKVED for individual entrepreneurs and organizations require licenses and permits. This does not mean that having indicated the code of the activity subject to licensing, you will have to immediately issue this license. Just keep in mind that until there is a license, you will not be able to start the relevant work, even if you register OKVED.
2. Every year, until April 15 of the next year, organizations confirm the main activity in the Social Insurance Fund. Based on the documents, the FSS sets the rate for calculating injury contributions. If you do not confirm the main type of activity, then the FSS will take for calculation the type from your list for which the maximum rate. The tax calendar in the My Business service will not let you forget about the necessary events, and if you forget, it will remind you.
You can always add or reduce your list of activities. To do this, by the decision of the founders, they make changes to the Charter (if any), submit an application to the tax authority (form P14001 for organizations, form P24001 for individual entrepreneurs). Organizations pay a state duty of 800 rubles, individual entrepreneurs do not pay. This is necessary within 3 working days after the start of a new activity.
Sanctions for non-compliance with OKVED codes
Article 14.25 of the Code of Administrative Offenses, part 3, refers to a fine of 5,000 rubles for officials for late submission of information about an individual entrepreneur or organization to the registration authorities. There are no OKVED sanctions anywhere else, but this does not mean that you can relax and not indicate the codes. Problems may arise when switching to special taxation regimes, when offsetting VAT, and partners may decide not to contact you as an unreliable counterparty. In other words, it is better not to ignore the obligations provided for by law - it can go sideways at any moment.
Does the taxation system affect OKVED codes for LLCs and individual entrepreneurs?
It is impossible to clearly divide OKVED according to taxation systems. It happens that different taxation regimes can be applied using the same code, and, on the contrary, it is impossible to deal with some types of special regimes. But you definitely won’t be able to switch to special mode if your registration documents do not contain OKVED codes. This is another reason to do everything on time in order to save yourself from running around in the future.
Selecting the OKVED code using "My Business"
When filling out the documents for registration in you can easily and easily generate a list of OKVED codes and, if necessary, change it. The system will tell you if, according to the selected code, you need to submit a notification to regulatory authorities (for example, Rospotrebnadzor or Roszdravnadzor). The notification itself can also be filled out directly in the service.
If you have any difficulties with choosing a code, you can always consult with our experts.
You will always have a valid classifier and a complete list of current forms at hand.
And this is not a complete list of benefits that users of the service receive. Take advantage of the free trial period and you will be surprised how much you can do in the service without being a tax and accounting specialist.
Should bring profit to its owner. But not always an idea that seems profitable is easy to put into practice. It may turn out that only organizations can be engaged in the chosen line of business, so you need to know in advance what types of IP activities are available.
Where to find the types of activities allowed for individual entrepreneurs
There is no single law or regulation that lists all types of IP activities. You will not find an official list with areas of business that individuals cannot engage in.
At first glance, it may seem that there are no prohibitions on the types of activities for individual entrepreneurs at all, but this is not so. There are many areas that are regulated by special laws (for example, the production and circulation of alcohol, insurance, microfinance, banking, credit activities, pawnshops), and they clearly state that they are available only to legal entities.
What are the reasons for such restrictions for individual entrepreneurs, the laws do not specify, but for some reason it is believed that individuals have less opportunities to comply with the requirements for a certain type of activity.
In addition to those lines of business, access to which is prohibited for individual entrepreneurs, there are still those for which you need to obtain a license or permission. We can say that these are conditionally accessible areas, because you may not get approval from state bodies for them.
And, finally, there are other types of activities that are under the additional control of Rospotrebnadzor and other inspectors. The fact that you started to engage in them must be reported even before the actual activity, by submitting a special notice.
Thus, all types of economic activity in Russia can be divided into groups, we will talk about them in more detail.
Not available to individual entrepreneurs
This list includes almost all licensed activities, because in order to engage in them, special requirements must be met: the availability of premises, equipment, qualified personnel, finances, etc. A complete list of licensed areas is contained in Law No. 99-FZ of 04.05. 2011, here we present only some of them:
- activities related to weapons, aircraft, military equipment, industrial explosives;
- production of medicines;
- transportation by sea, air, rail;
- private security activities;
- employment services for Russian citizens outside the Russian Federation;
- communication services, television and radio broadcasting;
- geodetic, cartographic, surveying works;
- extinguishing fires in settlements, in production, infrastructure facilities;
- trafficking in drugs, psychotropic substances, growing narcotic plants;
- organization of gambling in bookmakers and totalizators;
- management of apartment buildings.
In addition, there are several other federal laws, each of which regulates only one licensed type of activity that is under special control:
- production and sale of alcohol;
- space activities;
- use of atomic energy;
- activities of credit institutions, NPFs, in the securities market;
- protection of state secrets;
- bidding;
- clearing and insurance activities.
Licensed but permitted for IP
However, several licensed activities are still available to individual entrepreneurs:
- passenger transportation of more than eight people by road;
- educational activities;
- private detective (detective) activity;
- pharmaceutical activity;
- medical activity.
Here, however, it must be taken into account that in order to obtain licenses for educational, pharmaceutical, medical activities, an individual entrepreneur must have the appropriate education and work experience in the specialty. Requirements for each licensed direction are given in separate regulatory legal acts. For example, the licensing of medical activities is regulated by Decree of the Government of the Russian Federation of April 16, 2012 No. 291.
If you choose one of these areas of activity, then first study the licensing requirements for each of them. Before you register an IP, make sure that you will comply with them. For example, you want to open a pharmacy, but you do not have a pharmaceutical education. Then you will have to register a legal entity and hire a manager who has the appropriate education and the necessary work experience.
Requiring permission
These business areas are not licensed, but they cannot be engaged in if the entrepreneur does not obtain permission for them:
- passenger taxi;
- Beauty Salons;
- public catering;
- grocery stores;
- some building work.
A taxi permit is issued by the regional Ministry of Transport or the Department of Roads and Transport, and for the sphere of life and trade - Rospotrebnadzor and fire inspectorates. As for construction work, many of them require the approval of SROs (self-regulatory organizations). In addition, permission to open many retail outlets and household facilities must be coordinated with the local administration.
Not requiring special conditions
However, there is still an extensive list of areas that do not require a license, permit or permit. This is almost the entire sphere of life, services, wholesale and retail trade, manufacturing, agriculture, etc.
Of course, it cannot be said that such a business is not under the control of the state, because any buyer or client can apply for consumer protection by initiating an audit. But, at least, there are no initial restrictions or mandatory requirements for these areas.
Types of activities by tax regimes
In addition to this classification of IP activities, there are other restrictions associated with the chosen tax regime. If you are not very familiar with tax laws, you can choose a mode in which you cannot lead the direction you are interested in.
Briefly, the types of taxation of individual entrepreneurs can be summarized in the following list:
- OSNO - the general system on which the highest tax burden;
- STS - the tax rate is much lower;
- ESHN - available only to agricultural producers and fishing industries;
- UTII - the tax is calculated on the basis of the base yield specified in the Tax Code of the Russian Federation;
- - patent system, the tax is calculated from the annual potential income, the amount of which is set by local authorities.
Before choosing a tax regime, you need to make sure that your line of business fits this tax system. For example, on UTII or PSN, you can only engage in certain services, catering and retail trade in small areas. And if your choice is production or wholesale, then they are allowed only for OSNO or STS (on a simplified basis, besides, there are restrictions on income and the number of employees).
Thus, if the question is - to buy an IP patent or - you must first find out under which tax regime your business will fit. A list of activities permitted for each preferential regime can be found in the Tax Code.
How to report the selected type of activity
We talk in such detail about restrictions on business areas, because you must immediately indicate your main type of activity in the P21001 application. You cannot first register an IP, and then decide what to do. The main type of activity in the application for registration of an individual entrepreneur must correspond to the digital code of the OKVED 2019 classifier.
So, OKVED codes starting with 47.7 mean that the entrepreneur will be engaged in retail trade in non-food products in specialized stores. And if you want to open a cafe or restaurant, then your OKVED codes should start with the numbers 56.1.
The OKVED 2019 classifier is freely available in legal reference systems, free services for preparing registration documents, and specialized sites. All that is required is to find in the classifier the digital code that corresponds to your main activity (from which the maximum income is expected).
If you are interested in several directions, then you can choose more than a dozen OKVED codes. On sheet A of the application P21001, 57 codes are placed, but if this is not enough for you, then fill out an additional sheet.
Pay only attention to the fact that you need to choose digital codes only from the current edition of the classifier (OKVED-2 or OKVED-2014). The official name of this document is OK 029-2014 (NACE rev. 2), approved by the Order of Rosstandart dated 31.01.2014 N 14-st.
Until mid-2016, a different edition of the classifier (OKVED-1) was used to register LLCs and individual entrepreneurs, the outdated codes of which are still on some resources. If you indicate codes from the previous directory in the application P21001, then the registration of an individual entrepreneur will be refused, so be careful.
Is it possible to change the direction of the business
What to do if the main type of activity chosen during the registration of an individual entrepreneur is no longer interesting to you? There is no problem here, you will not have to re-register with the tax office.
If the OKVED codes of the new direction you are interested in have already been declared in the form P21001, then just start doing them. If not, then this must be reported to the registering inspection by submitting form Р24001 with new OKVED codes. The deadline for submitting this application is only three business days from the time you started your new referral. Violation of this deadline is subject to a fine of 5,000 rubles.
For entrepreneurs working without employees, changing the main OKVED code does not have any consequences. But employers pay premiums for employees for their insurance against industrial accidents and injuries at different rates, depending on the class of occupational risk.
The fact that the main OKVED code of the individual entrepreneur has changed must be reported to the local social insurance fund by submitting a certificate confirming the main type of activity. The deadline for submitting this document is no later than April 15 for the previous year. If during the past year the main line of business has not changed, then IP employers do not need to confirm it. Well, entrepreneurs who work on their own do not submit this certificate at all, because they do not pay contributions to the Social Insurance Fund for themselves.
Again, the choice of business direction for individual entrepreneurs is significantly limited. Before applying for registration of an individual entrepreneur, find out if such activities will be available to you, and if not, then create a legal entity.
This section includes:
- physical and/or chemical processing of materials, substances or components with the aim of converting them into new products, although this cannot be used as a single universal criterion for determining production (see below "recycling")
Materials, substances or transformed components are raw materials, i.e. products of agriculture, forestry, fisheries, rocks and minerals and products of other manufacturing industries. Significant periodic changes, updates or transformations of products are considered to be related to production.
The manufactured product may be ready for consumption or may be a semi-finished product for further processing. For example, an aluminum refining product is used as a raw material for the primary production of aluminum products, such as aluminum wire, which in turn will be used in the necessary structures; production of machinery and equipment for which these spare parts and accessories are intended. The manufacture of non-specialized components and parts of machinery and equipment, such as engines, pistons, electric motors, valves, gears, bearings, is classified in the appropriate grouping of Section C "Manufacturing", regardless of which machinery and equipment these items may be part of. However, the manufacture of specialized components and accessories by molding/molding or stamping plastic materials is classified in 22.2. The assembly of component parts and parts is also referred to as production. This division includes the assembly of integral structures from constituent components, either self-produced or purchased. Recycling, i.e. processing of waste for the production of secondary raw materials was included in group 38.3 (processing of secondary raw materials). While physical and chemical processing may take place, this is not considered part of manufacturing. The primary purpose of these activities is the main processing or processing of waste, which is classified in section E (water supply; sewerage, waste management, pollution control activities). However, the production of new finished products (as opposed to products made from recycled materials) refers to all production as a whole, even if waste is used in these processes. For example, the production of silver from film waste is considered a manufacturing process. Special maintenance and repair of industrial, commercial and similar machinery and equipment is generally classified in group 33 (repair and installation of machinery and equipment). However, repair of computers, household appliances is classified under group 95 (repair of computers, personal and household items), while repair of automobiles is classified under group 45 (wholesale and retail trade and repair of motor vehicles and motorcycles). Installation of machinery and equipment as a highly specialized activity is classified in group 33.20
Note - The boundaries of manufacturing with other sections of this classifier may not have a clear unambiguous specification. As a rule, manufacturing industries involve the processing of materials to produce new products. Usually this is a completely new product. However, the definition of what constitutes a new product can be somewhat subjective.
Processing implies the following types of activities involved in production and defined in this classifier:
- processing of fresh fish (extraction of oysters from shells, filleting of fish) not carried out on board the fishing vessel, see 10.20;
- pasteurization and bottling of milk, see 10.51
- dressing of leather, see 15.11
- sawing and planing of wood; wood impregnation, see 16.10;
- printing and related activities, see 18.1
- retreading of tyres, see 22.11
- manufacture of ready-to-use concrete mixtures, see 23.63
- electroplating, plating and heat treatment of metal, see 25.61
- mechanical equipment for repair or overhaul (e.g. motor vehicle engines), see 29.10
There are also activities included in the processing process, which are reflected in other sections of the classifier, i.e. they are not classified as manufacturing.
These include:
- logging, classified in section A (AGRICULTURE, FORESTRY, HUNTING, FISHING AND FISH CULTURE);
- modification of agricultural products classified in section A;
- preparation of foodstuffs for immediate consumption on the premises, classified in group 56 (activities of catering establishments and bars);
- beneficiation of ore and other minerals classified in section B (MINING);
- construction and assembly work carried out on construction sites, classified in section F (CONSTRUCTION);
- the activity of breaking large lots of goods into small groups and re-marketing of smaller lots, including packaging, repackaging or bottling of products such as alcoholic beverages or chemicals;
- sorting of solid waste;
- mixing of paints according to the client's order;
- cutting of metals according to the client's order;
- explanations of the various goods classified under section G (Wholesale and retail trade; REPAIR OF MOTOR VEHICLES AND MOTORCYCLES)
When registering their activity, an individual entrepreneur must indicate its code in the application. It depends on what is supposed to be done. OKVED codes for individual entrepreneurs are contained in the All-Russian classifier. It is updated frequently, so it is important to always check its relevance and validity period. The classifier is used for statistical analysis and accounting. When choosing OKVED for individual entrepreneurs, it is advisable to follow simple rules, and then the process will take a minimum of time.
Why is it important to choose the right code for the classifier?
The choice of OKVED for individual entrepreneurs is a very important point. Based on the code, data on the type of activity is entered into the state register (EGRIP). The tax authority sends this information to the FSS for registration and determining the size of the insurance rate. Thus, the amount of the contribution that the entrepreneur will pay as insurance for employees against accidents and occupational diseases depends on the correctness of the chosen code.
The legislation does not prohibit carrying out activities that are not included in the list during registration. But it is better to think over such a possibility in advance and make an appropriate mark. When making changes (adding or deleting codes), you will need to pay a state duty. The process will take some time to complete. In a situation where changes need to be made as soon as possible (for example, when concluding a contract, the existing code does not correspond to the activity being carried out), such a delay will be very inconvenient.
Important information to consider when choosing
The classifier also consists of seventeen sections that correspond to classes of activities. The OKVED code consists of six digits. When choosing, it is allowed to use a four-digit number. The structure of the code can be described as follows:
- YY.YY.YY - type of activity,
- YY.YY.Y - subgroup,
- YY.YY - group,
- YY.Y - subclass,
- YY - class.
The most important point in determining the code is the relevance of the classifier. At the moment (in 2015) there are three OKVED. We list them in order, starting with the oldest:
- OK029-2001,
- OK029-2007,
- OK029-2014.
When registering, individual entrepreneurs must use OK029-2001. Its validity has been extended until January 1, 2016. When determining the actual code, you can use a manual search or use a special service. The classifier consists of approximately 73 pages. For this reason, a manual search will take quite a long time.
How to choose OKVED?
When determining the most appropriate code, you can use simple guidelines. The main one is the principle of "from the general to the particular". Let's describe the most convenient way. The choice begins with the field of activity (wholesale or retail trade, fishing, agriculture, etc.). The appropriate partition is then determined. After that, the entrepreneur needs to select the subsection, the class and subclass of interest, as well as the group and subgroup. And, finally, to determine directly the type of activity - its code.
An individual entrepreneur needs to choose an activity that will bring the greatest income. It is she who will become the main one according to OKVED. In addition, you can select additional codes. If problems arise during the identification process, you can use the classifier application (it contains detailed descriptions of all activities). It is worth noting that licensing is provided for some types of activities.
When using common Internet services, OKVED codes for individual entrepreneurs can be selected automatically. To search, you must enter a keyword for the intended type of activity ("retail", for example). Based on this, a list of codes is compiled, from which you need to choose the most suitable ones. The functionality allows you to insert the generated list immediately into the application and print it. In a short time, an entrepreneur can pick up an exhaustive list of OKVED codes, reflecting the main aspects of his activity.
Independent determination of the OKVED code, the scheme of which is described above, is a simple process, but takes some time. For a visual representation of the order of work with the classifier, here are a couple of examples for finding a specific code:
- An individual entrepreneur decided to start manufacturing hats and other headwear. We define section - D, since the indicated activity is production (processing in the classifier). We look at the subsection - DB - textile and clothing production. We select the production of clothing - class 18. From the list we determine the most appropriate code. They will be - 18.24.4. This is the OKVED code for activities related to the production of hats.
- The activity of the entrepreneur will be related to the retail trade of paints. Again we turn to the classifier and look for a suitable section. Suitable - G - retail and wholesale. We define the class - 52. Subclass - 46 (retail trade in hardware). The required code is 52.46.2.
Currently, the service for choosing OKVED for individual entrepreneurs, which is provided by companies, has become widespread. They offer it in combination with IP registration. For a certain amount, the required number of codes is selected depending on the types of activities intended for conducting. An entrepreneur does not need to independently search for the current OKVED and choose. He is provided with a ready-made package of documents, all that remains is to start working.
What difficulties can arise with the wrong choice of code or its absence?
The obligation to indicate information contained in state registers is enshrined in the law of August 8, 2001 under the number 129-FZ (fifth article, paragraph 1). Within three days from the start of a new activity, it is necessary to inform the tax office about the change in the code. Failure to comply with the instructions provides for liability, this is stated in Article 25 of Law 129-FZ of August 8, 2001. Fines are contained in Article 14.25 of the Code of Administrative Offenses, in this case, a recovery of up to five thousand rubles is possible.
But it is worth referring to paragraph 5 of Article Five, in which OKVED codes are excluded from the list of information required for submission. It follows that the IP does not face administrative punishment. The main inconvenience of the entrepreneur is associated with the implementation of activities for which the inconsistency or absence of the code will be a serious hindrance. Among the most common problems that may arise, it is worth highlighting the following:
- refusal of the tax authority to refund VAT on the basis of the absence of an activity code in the USRIP, which was declared for deduction,
- payment of inflated insurance premiums (“for injuries”) - if the entrepreneur actually carries out a type of activity corresponding to a lower class of professional risk than the main code specified in the USRIP, then payments will be accrued based on the main one; in this situation, it is necessary to promptly make changes and apply a more favorable OKVED in a specific situation,
- loss of customers or a profitable contract - when making a deal, companies request a package of documents from new counterparties, which includes an extract from the USRIP; in the absence of the OKVED code for individual entrepreneurs, the possibility of further interaction becomes less likely due to the high risk of refusal (for the company) to deduct VAT in the future,
- receiving a fine for failure to submit certain types of reporting - for some codes, periodic reporting is provided.
The use of codes relevant for the current year, and most importantly, corresponding to the activities of an individual entrepreneur, will greatly simplify interaction with the state and other representatives of the business sector. It is important for an individual entrepreneur to keep abreast of the latest legislative updates and constantly analyze how they affect his business. Timely notification of a change in the type of activity will help to minimize possible payments on insurance premiums. A competent organization of your own business guarantees the entrepreneur to receive the maximum possible income with an adequate investment of effort.
Video - "Adding IP activities"
