The OKVED code for individual entrepreneurs is a certain combination of numbers, in which the entrepreneur's type of activity is encrypted. A knowledgeable person can immediately understand what this or that company is doing: construction, trade or other activities.
What is OKVED?
OKVED for individual entrepreneurs literally stands for the All-Russian classifier of types of economic activity. Its main purpose is to code the type of activity for convenience, as well as to obtain quick information about a particular entrepreneur.
In the classifier itself, information about the legal form, form of ownership and departmental subordination is encrypted.
By the way, according to OKVED it is impossible to understand the commercial or non-commercial activities carried out by an organization or what kind of trade it is engaged in - external or internal. This is reflected solely in the Articles of Association of the company.
For OKVED, a hierarchical classification method has been chosen. The activity is encrypted sequentially.
How to choose OKVED?
When a future entrepreneur decides to open his own business, first of all he must decide in which area he will work. For example, he decided to open his own online store. This means that he needs to consider OKVED codes for individual entrepreneurs in the "trade" section. Some online store owners make the mistake of listing "courier services" and forgetting that their main income comes from sales, not delivery services.
If an entrepreneur has only one main activity, and other activities bring him only a minimal income, then he is not at all obliged to indicate it in the tax service and this is not considered some kind of violation. However, if a person nevertheless decides to develop several areas of services, then in this case he is recommended to carefully study the list of classifiers and select those that he needs.
Where is OKVED used?
What are these codes for and where can I find them? This question interests many aspiring entrepreneurs.
The first time you may encounter codes when filling out an application for registration at the tax office. There you need to indicate the OKVED codes for individual entrepreneurs with decryption. It is interesting that their number is not limited by law, however, the amount of mandatory contributions for entrepreneurs depends on the main activity.
You can also encounter OKVED at:
- various regulatory documents;
- state register (there is a complete record of the activities of all registered organizations and entrepreneurs);
- other documentsinternational level;
- charter of the organization.
An entrepreneur may also encounter a list of codes more than once if they are added or deleted. This happens, for example, in situations where a company has decided to change the main direction of its activity or completely stop it.
OKVED and taxation systems
- The general taxation system (OSNO) includes absolutely all types of OKVED for individual entrepreneurs. The same codes are used for OOO.
- The Simplified Taxation System (STS) includes the largest list of classifiers. It is worth noting that with the USN it is impossible to indicate the codes 65.2X, as well as 66.0, 66.02, 67.12 and 66.22.6.
- Single agricultural tax (ESHN). Such a system of taxation is suitable only for a narrow range of activities. Classifiers for ESHN are suitable only for certain ones, or rather, only those that start with 01.
- Single temporary income tax (UTII) and a patent. There are no classifiers for this taxation system. It is interesting that an entrepreneur can choose UTII and a patent, but he does not have the right to indicate the code.
What OKVED for individual entrepreneurs exist?
In the Russian Federation and in the tax system there is a huge list of classifiers. They are divided into categories, but, as mentioned above, not all categories are suitable for the activities of individual entrepreneurs.
It is important for a novice businessman to know which codes are suitable for the activities of an individual entrepreneur. OKVED for them can be found inexisting list OK 029-2001.
The most common categories for entrepreneurs were:
- business and advisory services;
- advertising and web design;
- translations;
- marketing;
- architecture, interior design;
- website promotion;
- rental property;
- real estate activities;
- journalism.
Activities from these categories are most often indicated as the main direction of the entrepreneur's work. Also, the same classifiers can be indicated as additional activities.
How does the number of specified OKVED affect insurance premiums?
If an entrepreneur decides to indicate several OKVED codes for individual entrepreneurs, then, of course, he will be interested in whether their number affects the amount of insurance premiums?
So, each classifier has its own class of occupational risk. According to Article 1 of Federal Law 356-FZ of November 30, 2011, the amount of mandatory insurance premiums for entrepreneurs is regulated depending on this class.
The very number of specified OKVED will in no way affect the amount of insurance premiums for an entrepreneur, however, they will vary depending on the occupational risk class that is set for a particular classifier. The higher the risk class, the higher the premiums.
Choice of main activity
Howalready mentioned above, in order to accurately determine the choice of a classifier, it is necessary to study the appropriate OKVED lists for individual entrepreneurs with decoding. The main activity is the one from which the entrepreneur will receive his main income. Also, the main type of activity must necessarily fit the chosen taxation system. Failure to comply with these requirements threatens the entrepreneur with a hefty fine.
In addition, if it turns out that the classifier does not correspond to the main type of activity, then in this case the relevant services will be interested in the entrepreneur, including the FSS, which establishes the occupational risk class.
If it becomes known that an entrepreneur is trying to reduce the amount of his insurance premiums, and employees at his enterprise are at risk of developing occupational diseases, then in this case the individual entrepreneur will not be able to avoid a fine or even stop operations.
Indication of additional OKVED codes
Of course, an entrepreneur can specify only one activity code - the main one, but experts recommend not limiting yourself to this, otherwise the question will later arise: how to add OKVED for individual entrepreneurs?
So, an entrepreneur can indeed specify an unlimited number of classifiers. Moreover, as mentioned above, he can carry out activities without specifying OKVED, but only if the profit from it is considered insignificant. If the entrepreneur decides to provide other services, then he needs toapply to the tax authority, add the classifier to the list of your activities and report this to the social insurance fund for recalculation of mandatory insurance contributions.
Despite the visual impression that this procedure is not complicated at all, it is not quite so. The fact is that some activities are subject to licensing. When going through this procedure, it is necessary to indicate all classifiers, and if later the entrepreneur decides to add another type of activity, then he should re-pass all licensing, which takes a very long time and requires financial investments.
Full decoding of the classifier
If a person is still faced with OKVED for individual entrepreneurs, how can he understand what kind of activity the entrepreneur is engaged in, because some documents do not require a full decoding of the classifier.
So, the code can consist of 2-6 digits. The structure of the classifier can be represented as the following model:
- XX. - class;
- ХХ. Х - subclass;
- ХХ. ХХ. - group;
- ХХ. ХХ. Х - subgroup;
- ХХ. ХХ. ХХ - view.
It is absolutely not necessary for an entrepreneur to indicate the full breakdown of his activity (that is, all six digits), however, an insufficient number of them may serve as a reason for registering an entrepreneur with the tax authority.
In order for an entrepreneur to be registered, he must indicate at least the first three digits of OKVED, that is, a subclass. For example, if a person decides to open his own store onsale of clothing, he can only enter code 52.4 (other retail sale in specialized stores), but if he wishes, he can decipher his type of activity and indicate the subgroup - 52.42.7 (retail sale of hats).
