A little about activity coding
OKVED is the All-Russian Classifier of Types of Economic Activities. Simply put, it is a directory in which all types of activities are listed and collected into different groups. The directory has a hierarchical structure, each level of which corresponds to a digital designation.
There are 17 sections in OKVED, each of them has several classes - they are designated XX. Classes are divided into subclasses, subclasses into groups, which in turn are divided into subgroups. The last link of the classifier is the type, the code of which consists of 6 characters and looks like this: XX.XX.XX.
When an individual entrepreneur registers his activities, he selects OKVED and enters them into the application in form P21001. This information goes to the Unified State Register of Individual Entrepreneurs. Some entrepreneurs immediately choose codes with a reserve because they plan to expand their activities in the future. But many are determined only with current codes, because you can add OKVED for individual entrepreneurs at any time when the need arises.
Free selection of OKVED
And now step-by-step instructions for 2021, which will help entrepreneurs supplement the types of activities chosen during registration. It will also be useful for those individual entrepreneurs who want to exclude unnecessary codes from the Unified State Register of Individual Entrepreneurs or simply change the main OKVED.
Filling out an application on form P24001
Adding OKVED is a procedure that is subject to registration with the Federal Tax Service. To initiate it, you must fill out an application on form P24001. It includes 9 pages, but you do not need to fill them all out. Why is this document needed?
Registration of additional OKVED codes is carried out at the request of a businessman
To inform representatives of the tax service about additional areas of activity that the businessman plans to engage in in the near future. It is worth considering the step-by-step instructions on how to add OKVED for individual entrepreneurs in 2021.
Sample
A resident of the Russian Federation should pay attention to filling out the title page, sheet “E” and “G”.
If errors and inaccuracies are made, the entrepreneur runs the risk of being refused registration actions related to expanding the OKVED list.
General rules for entering information
The interested person enters the following information on the title page of the application:
- FULL NAME;
- OGRNIP;
- TIN.
In paragraph 2, you should indicate code “1” (change of information about individual entrepreneurs).
Sheet “E” is compiled on 2 pages: the first contains information about new codes that will be entered into the Unified State Register of Entrepreneurs, and the second contains information about business formats that should be cancelled.
When the goal is to open auxiliary directions (without deleting “existing ones”), then page No. 1 must be filled out. And if the entrepreneur only needs to remove the old code, then the information is entered into page No. 2.
Sheet “E” is filled out in full only when adjustments are made to the main OKVED. The new commerce format is recorded on the first page, and the old one is indicated on the second.
Sheet “G” contains the contact information of the interested person (email address, telephone number). As an addition, the method of informing the businessman about the results of consideration of application P24001 is indicated.
It is necessary to sign the document only in the presence of a tax inspector. An individual entrepreneur has the right to entrust the submission of an application for the inclusion of additional business formats in the Unified State Register of Entrepreneurs to a third party, having previously issued a power of attorney for him, which is subject to notarization.
Note! The state duty for registration of new types of OKVED is not paid.
How to fill out an application correctly
Completing the P24001 application is an important point that you should pay attention to when preparing to make changes. When filling out you should pay attention to the following points:
- The form has 8 sheets, but you do not need to fill them all out. The pages you need depend on the situation.
- On the main page, the basic data of the individual entrepreneur is indicated, that is, his full name, tax identification number, OGRNIP, and so on.
- New codes are located on page 1 of sheet D.
- The exclusion of old unnecessary codes is written on page 2 of sheet D.
- The application is filled out with a black or blue pen; you can fill it out on a computer, even using special services and programs. The main thing is that it corresponds to the P24001 form.
- Only capital letters are used.
- The application does not need to be signed with your own hand; this should be done at the Federal Tax Service, with an employee who will certify the signature.
- The document does not need to be stitched.
In general, the requirements for filling out the application are fully consistent with those required for the application for registration of an individual entrepreneur.
Sample form No. P24001:
Download form No. P24001 (sample/form)
filling
Read: Registration of an individual entrepreneur in the Social Insurance Fund as an employer
How to choose OKVEDs
When registering, you can specify as many types of activities as you like. This will not in any way affect the tax rate, the possibility of using special taxation systems or special programs, or accounting. All this can change only from the moment the individual entrepreneur begins to actually work in these areas.
If for some reason you need to add activities, you can do this at any time. There are also no restrictions on the number of applications. Applications can be submitted immediately after registration.
It is recommended to add all OKVEDs that directly or indirectly affect the activity. For example, if retail trade is planned, you can also indicate wholesale, as well as trade in related goods. This will protect the entrepreneur in case such a transaction is still required.
You can even indicate those types of activities that you do not plan to engage in at all. The only difficulty is that the application for registration or amendments will be extended by several sheets. It is also worth checking whether it is permissible for an individual entrepreneur to conduct this activity; there are some changes in this regard.
How OKVEDs are initially entered
Registration of an individual entrepreneur is carried out by submitting an application to the Federal Tax Service in form P21001. The law establishes a specific form; sending a different document is not allowed.
Page 4 of sheet A contains a table in which you need to enter special codes. Each of them will mean a certain type of activity.
One code will be considered the main activity, the rest - additional. You can add as much as you like, there are no restrictions on quantity.
It is assumed that the main OKVED is the area that the individual entrepreneur will primarily deal with. But there are no legal restrictions on this matter. The distinctions are formal.
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Sample form No. P21001:
Download form No. P21001 (sample/form)
Learn more about the deadlines for making changes and liability for violating them.
P13001 or P14001 - application forms that must be submitted to the tax service when there are changes in the main information for the entrepreneur. This must be done no later than 3 days after the decision is made and a protocol is drawn up on changing the main OKVED code. The registration itself takes no more than five days, as already mentioned.
Numbers in the program
Bringing to administrative responsibility is a punishment for those who violate the specified deadlines. Such penalties in the form of fines are applied if:
- Submission deadlines were violated in general, including online.
- Other activities were discovered that were not previously reported.
The procedure for changing the main type of activity depends on the need to make amendments to the statutory documents received when opening the business.
How to change and add OKVED code
When you register as an individual entrepreneur or legal entity, in the registration application you must indicate the main type of activity and several additional ones. You can select them from the list approved by the All-Russian Classifier of Types of Economic Activities (OKVED).
Data on OKVED codes are used by:
- Federal Tax Service: compares actual activities with those declared during registration;
- Rosstat: analyzes the number of companies involved in a particular activity;
- FSS: calculates contributions for injuries and occupational diseases.
As you conduct business, there may be a need to change the main code or add other types of activities to those already contained in the Unified State Register of Legal Entities or Unified State Register of Individual Entrepreneurs. This is especially true now, in conditions where the pandemic has greatly affected a number of industries: tourism, transportation, restaurants and cafes, etc. It is quite possible that some businesses whose work is related to these affected industries will want to adjust or even change their field of activity. To do this, you will have to change the OKVED codes.
Risks when conducting activities that do not comply with those specified in OKVED
It often happens that an individual entrepreneur or legal entity conducts activities that do not comply with either the main or additional OKVED codes declared during registration.
And the Federal Tax Service, in Letter dated August 22, 2019 N SA-17-2/ [email protected] , “calms down” business, clarifying that there is no direct prohibition in the law on conducting activities that do not coincide with the declared OKVED codes.
Nevertheless, certain risks still arise in such a situation:
- The tax office can deduct VAT from a business if it turns out that the OKVED code does not match the type of goods purchased.
- If a company operates on UTII, but in addition to the types of activities falling under this tax regime, it is assigned other codes that fall under the general taxation regime, then tax inspectors may require declarations for all major taxes, in addition to the UTII report.
- The bank can block the current account if it has received money for the supply of sand, and according to the documents the business provides services as a hairdresser and beauty salon.
- Companies are required to confirm their main activity with the Social Insurance Fund. Based on this, the agency determines the class of occupational risk and sets the rate of contributions for injuries.
- You may lose your benefits. As the pandemic situation has shown, many businesses were unable to take advantage of government support measures precisely because their main OKVED code did not correspond to the approved list of areas of activity most affected by the spread of coronavirus infection. Companies and individual entrepreneurs engaged in these areas as their main economic activity received priority targeted support.
Many during this period wondered: is it possible to change or add the OKVED code in order to take advantage of state support? When a list of conditions for receiving a benefit or subsidy was announced, a date was indicated by which the business must meet all the conditions. Later, even if a business changed some condition, including expanding the main OKVED code, it did not have the opportunity to receive benefits or subsidies.
That is why it is important to make changes or add new OKVED codes to the state register in a timely manner. If you follow the routine, after changing types of activity, you need to report this to the tax office within 3 working days (Federal Law No. 129-FZ dated 08.08.2001). For violation of this requirement, a fine is imposed under paragraph 3 of Art. 14.25 of the Code of Administrative Offenses of the Russian Federation in the amount of 5,000 rubles.
Conducting business according to the law. Services for individual entrepreneurs and LLCs less than 3 months old
Details
How to change or add OKVED codes for an individual entrepreneur
First of all, you need to decide what activities you want to add. To do this, study the classifier of types of economic activities. Please note that individual entrepreneurs are prohibited from engaging in certain types of activities: insurance activities, credit activities, production and sale of alcohol, etc.
Next you need to follow the following steps:
1. Submit documents to the tax office (in person, by proxy or online). This can be done at the MFC, through the State Services portal, or in your personal account on the Federal Tax Service website. When submitting documents online, it is important to have a strong, qualified electronic signature.
If you do this in person, then you need to have with you:
- passport;
- a completed application on form P24001 with new types of economic activity.
New OKVED codes must be indicated in the application on sheet E. Those codes that are added to the register are indicated on page 1. The codes must include at least four characters.
If the main type of activity does not change, then there is no need to fill out section 1.1 of page 1 of sheet E.
If some codes need to be excluded from the Unified State Register of Individual Entrepreneurs, they must be entered on page 2 of sheet E.
In addition to sheet E in form P24001, you need to fill out the title page and sheet G, where your full name and contact information are indicated.
Anyone who submits an application on behalf of an individual entrepreneur, under a notarized power of attorney, must have a completed form P24001, certified by a notary.
There is no state duty charged when changing OKVED codes. Therefore, no payment document is required.
2. Wait for consideration of the application to add OKVED codes within 5 working days.
How can an LLC change its OKVED code?
After you decide on the types of activities that you want to add, you need to prepare an application in form P14001 (data is entered on the title page, as well as on sheets H and P).
When filling out Sheet H, at least four characters of the code are entered.
Page 2 in sheet N is needed when indicating the types of activities that are planned to be excluded from the Unified State Register of Legal Entities. It is filled in if necessary.
After that:
- the application must be certified by a notary (however, if it is sent by the applicant in electronic form and signed with an enhanced qualified electronic signature, then the help of a notary is not needed);
- take the completed application to the tax office if you do everything in person, and be sure to take your passport with you.
Pay attention to the bylaws. If he takes into account that an organization can engage in any type of activity, then it is enough to add new OKVED codes only to the Unified State Register of Legal Entities.
If there is no such possibility in the charter, then the changes must be recorded both in the charter and in the Unified State Register of Legal Entities. In this case, the procedure will become more complicated, and the set of documents with which you will need to contact the tax office will be larger:
- application in form P13001;
- passport;
— decision to amend the constituent documents;
— constituent documents in a new edition (2 copies);
- a document confirming payment of the state fee (but if the application is submitted online, for example, through the website of the Federal Tax Service, State Services, then the fee is not charged).
