Trade tax in Moscow: who, how and when should pay it

Where is the trading tax introduced in 2021?

A trade tax can only be established on the territory of cities of federal significance (Moscow, St. Petersburg, Sevastopol), but for this they need to adopt the relevant local law in advance.

As of 2021, the legal act (Law No. 62 of December 17, 2014) establishing the trade fee was approved only by the Moscow city authorities

and came into effect
on July 1, 2015
. Therefore, if you trade in the capital (regardless of which Federal Tax Service you are registered with - Moscow, Moscow Region, etc.) - you are required to pay a trading fee.

It is quite possible that with good budget revenues, the trade tax will be introduced in other municipalities

, but for this local authorities will need to pass a corresponding law. According to available information, due to the difficult economic situation in the country, the trade tax in 2021 will continue to be introduced only in Moscow.

Introductory information

Let us remind you that the trade fee is a mandatory quarterly payment for the right to conduct trading activities at trading facilities.
It can be introduced no earlier than July 1, 2015 in federal cities - Moscow, St. Petersburg and Sevastopol. In other territories, authorities will also be able to introduce a trade tax, but only after the appearance of a special federal law. To date, the corresponding law has not yet been adopted. And in cities of federal significance, the decision to introduce a trade tax has so far been made only by the Moscow authorities. In the article “Trade fee: who will have to pay and how much for the right to trade in cities of federal significance,” we commented on the general provisions of Chapter 33 “Trade fee” of the Tax Code of the Russian Federation. Since the collection rates had not yet been approved at that time, it was not possible to talk about specific amounts. From July 1, 2015, when calculating the trade fee for the right to trade in Moscow, it will be necessary to apply the rates introduced by the Moscow City Law of December 17, 2014 No. 62 “On Trade Fee” (hereinafter referred to as Law No. 62). Let's analyze this law. But first, let us remind you what formula is used to calculate the trading fee.

Who should pay the trade tax

The need to pay a trade tax directly depends on 2 factors:

1. The chosen taxation system.
2. Type of business activity.

Selected tax system

Trade tax must be paid only by individual entrepreneurs and organizations using OSNO or simplified tax system.

Payers of the Unified Agricultural Tax and entrepreneurs with a patent do not need

.

As for UTII, according to the new rules, it is impossible

. Therefore, if you apply UTII, and a trade tax has been introduced for your type of activity in the region, then you will have to cancel the imputation and switch to another taxation system.

Table 1. Payment of trade tax depending on the tax regime

Activities subject to trade tax

Trade tax must be paid to individual entrepreneurs and organizations engaged in retail, small wholesale and wholesale trade through:

• stationary retail facilities with a sales floor;
• stationary retail facilities that do not have a sales area (with the exception of gas stations);
• non-stationary retail facilities;
• warehouses.

In this case, the trade fee is transferred only in the case when a specific type of activity is expressly specified in the law. For example, in Moscow, sales from warehouses

does not fall under the trade tax, this is due to the fact that this type of business is not provided for in the legal act of Moscow.

Regarding the activities of retail markets

, then it is also equated to trade. However, the fee is not levied on the retail outlets themselves, but on the entire market area itself.

Therefore, it can be expected that market owners will not want to pay the trading fee out of their own pockets and will simply distribute these costs among the traders, increasing their rent or the cost of the right to trade.

Note

: in Chapter 33 of the Tax Code of the Russian Federation there are no definitions for many key terms (sales area, what are objects of stationary trade, etc.) therefore, in such a situation, representatives of the Federal Tax Service recommend focusing on the concepts used for UTII and PSN (see Article 346.27 and Article 346.43 of the Tax Code of the Russian Federation).

Rules for correct payment of vehicles

The fee must be paid once a quarter (Article 414 of the Tax Code of the Russian Federation) - before the 25th day of the month following the reporting quarter.

The payer calculates the fee amount independently once and shows it in the notification that he submits to the tax authority when registering himself as a vehicle payer.

If for any reason the fee amount has changed, the payer must again submit a notification to the tax office with the changed data. The fee is paid even if the payer conducted trading activities at the facility for only one day in the quarter.

The vehicle should be transferred to the tax authority with which the payer is registered in this capacity. That is, as a rule, it is the Federal Tax Service, which includes the object of trade (often the business entity itself is registered with another tax office).

KEEP IN MIND

Federal Law No. 172-FZ dated 06/08/2020 exempted those affected by coronavirus from paying the trade tax for the 2nd quarter of 2021. For more information about this, see “To whom and which taxes will be written off for the 2nd quarter of 2021: list.”

Activities not subject to trade tax

Local authorities have the right to establish types of activities in respect of which the trade tax does not need to be paid:

Preferential types of activities

According to Moscow Law No. 29 of June 24, 2015, the following were exempted from paying the trade tax:

• retail trade through vending machines;
• trading at weekend fairs, specialized and regional fairs;
• trade in cinemas, theaters, museums, provided that at the end of the quarter the income from ticket sales is at least 50%;
• trade in the territory of the agri-food cluster (vegetable warehouse);
• retail facilities located on the territory of retail markets;
• autonomous budgetary and government institutions;
• organizations of federal postal services;
• non-stationary retail facilities (kiosks, tents, open trays) selling printed products;
• religious organizations regarding trade in religious buildings.

In addition, consumer service

(hairdressers, beauty salons, laundries, dry cleaners, repair of clothing, shoes, watches, jewelry, repair and production of metal haberdashery and keys) subject to the following conditions:

1. The main activity is the provision of household services, not trade.
2. The area of ​​the object does not exceed 100 square meters. meters, and, directly, the retail space occupied by equipment intended for display and display of goods is no more than 10% of the total area.

For example, a beauty salon with an area of ​​50 sq. meters, you will not need to pay a sales tax if no more than 5 square meters are allocated for the trade of related products (shampoos, creams, etc.). meters.

According to representatives of the Federal Tax Service, online stores

also do not have to pay a trade fee, but only on condition that their activities do not involve direct contact between the seller and the buyer (sales through couriers or forwarders).

Moreover, the sale of goods through an online store falls under the description of trade from a warehouse, and, as you know, in Moscow it is not subject to trade tax.

note

, despite the fact that the above types of activities are preferential and are exempt from paying the trade tax, it is still necessary to submit a notification (indicating the appropriate category of benefit) about registering as a payer of the trade tax.

How entrepreneurs can reduce personal income tax payable

Subjects that are subject to the general taxation system and have the right to reduce tax payments through trade fees include not only organizations, but also individual entrepreneurs. Entrepreneurs have the right to offset the paid contribution against the amount of accrued personal income tax for the tax period (clause 5 of Article 225 of the Tax Code of the Russian Federation).

However, if a taxpayer is registered in one region, but pays a trade tax at the place of business in another territory, it will not be possible to reduce the final costs of transferring personal income tax. Individual entrepreneurs will also need to register as a trade tax payer by submitting a corresponding notification to the Federal Tax Service.

In the declaration in form 3-NDFL, approved by order of the Federal Tax Service of Russia dated December 24, 2014 No. ММВ-7-11 / [email protected] (as amended on October 10, 2016), the trade tax, which reduces the amount of accrued income tax, will be shown on the line 091 section 2.

For the 3-NDFL declaration form, which contains a line to reflect the trade fee, see the article “New 3-NDFL tax return form.”

What is subject to trade tax?

The basis for calculating the sales tax is not the actual income received, but the very fact of using the retail facility

. Moreover, a retail facility is understood not only as real estate (shops, tents, kiosks, etc.), but also as movable property (delivery and distribution trade objects).

Therefore, the need to pay a trade tax does not depend on factors such as:

• Ownership of a retail facility
  . The fee must be paid by those persons who directly use the facility for trade, regardless of whether it is the owner or the tenant.
• The amount of income received
  . The size of the trade fee directly depends only on the number of square meters, as well as the type and location of the trade facility.
• Place of registration of a businessman
  . The trade tax must be paid by everyone who trades in the territory where it is established, regardless of the place of residence of the entrepreneur (for example, an individual entrepreneur registered in Smolensk, but operating in Moscow is required to pay a trade tax).
• Regularity of trade
  . The trading fee is calculated and paid for the entire quarter at once. Therefore, regardless of the seasonality of the business and the number of days worked in the quarter, the trading fee will still have to be paid in full.

Reflection of the fee in the declaration according to the simplified tax system

“Simplers” report on their activities using a declaration according to the simplified tax system, which provides a separate section 2.1.2 for trade tax payers. It is filled out by those persons who have elected to tax their income. Individual entrepreneurs and organizations working with the “income/expenses” object include the fee in the expenditure part, showing it in pp. 220-223 of section 2.2.

In section 2.1.2, persons with the object “income” show:

• Income from the beginning of the year to the end of each quarter (pp. 110-113);
• Corresponding tax for each period (pp. 130-133);
• Contributions and benefits issued to employees that reduce tax (pp. 140-143)
• Fee paid since the beginning of the year, broken down by period (pp. 150-153);
• The fee by which the tax can be reduced (advance on it) (p. 160-163) - if the fee for the period is greater than the result of the difference in income from p. 130-133 and contributions and benefits that reduce it from p. 140-143, then the result of the difference is indicated; if the fee is less, then it can be fully accepted as a reduction in the simplified tax

An example of reflecting the fee in section 2.1.2 of the tax return:

How to calculate the trading fee in 2021 (rates in Moscow from July 1, 2015)

Trade tax, mandatory payment, businessmen must calculate independently

, based on the tax rates established in the municipality.

It is worth noting that local authorities have the right to differentiate rates (up to 0), depending on the category of payer, retail facility, type of activity and its place of implementation.

Trade tax rates effective in Moscow from July 1, 2015

Please note
that when calculating the trading fee for activities related to the organization of retail markets, the fee rate is subject to indexation by the deflator coefficient of the current year.

Registration as a trade tax payer (notification)

To register as a trade tax payer, you must submit a special notification in the TS-1 form

to the tax office.

This document can be submitted in the following ways:

• in person in paper form;
• by mail as a registered item with a description of the contents.
• in electronic form via the Internet (under an agreement through an EDF operator or a service on the Federal Tax Service website).

Note

: Many tax offices have computers on which you can also fill out and print the notice.

How to determine the area of ​​the sales floor for the purpose of calculating the sales fee?

— The total area is calculated on the basis of inventory and title documents. They must contain information about the purpose, design features and layout of the premises, as well as information confirming the right to use the point. Calculate the fee rate using an online calculator >>

If I trade on the retail market, do I have to pay a trading fee?

- No. Trading fees in relation to activities related to the organization of retail markets are paid only by management companies.

If I qualify for benefits and are exempt from trade tax, do I need to submit a notification to the tax office?

- Yes need. In this case, along with the notification, it is necessary to submit documents confirming the right to receive benefits. And in the notification indicate the benefit code. Download the notice of registration as a trade tax payer >>

Where is the notification sent?

If the activity is carried out through a stationary facility, the notification is submitted to the Federal Tax Service at the location of this facility, and if through a non-stationary facility, then at the location (residence) of the taxpayer.

If there are several trade objects, then one notification is submitted, but indicating all objects at once. The place of filing the notification in this case will be the tax office to which the retail facility listed first in the notification belongs.

Note

: Notification is also given if the area of ​​the facility changes or a new outlet appears. If the location of an object changes, a notice of deregistration is first written and only then a notification is submitted to the Federal Tax Service at the new address.

Within 5 working days after submitting the notification, the tax office must issue a certificate

payer of trade tax. The certificate is issued in hand or sent by mail.

What happens if you don't register?

For the trading fee, you must register within 5 business days from the start date of trading. The liability for lack of registration can be significant for an entrepreneur - the amount of the fine starts at 40,000 rubles. To register, you must submit a notification to the tax office at the location of the real estate used in trade, or at the place of registration of the enterprise. Use Kontur.Elba to register a trade item, calculate the trade fee and always remember when it needs to be paid.

Penalty for late submission of notice

There is no point in avoiding filing a notification. Most retail facilities are already under the control of the tax inspectorate, which is well aware of what activities are carried out on them.

In addition, the Moscow Department of Economic Policy and Development is now also involved in identifying illegal traders, which, if detected, will independently transmit information to the Federal Tax Service.

For late submission of notification and trading without the required certificate, the tax office may issue a fine.

, the amount of which is
10%
of the income received during the period of illegal work, but
not less than 40,000 rubles
.

Also, for failure to submit a notification, an additional fine of 200 rubles

.

Note

: penalties can be imposed only if an on-site inspection has been carried out and a corresponding report has been drawn up regarding the absence of permits.

In addition to fines, there are other sanctions

for work without notifying the Federal Tax Service. For example, those who have not filed a notice are prohibited from reducing the basic tax by the amount of the trade tax paid.

Reduction of taxes on trade tax

For the quarter in which the trade tax was paid, the following taxes can be reduced:

• income tax for organizations;
• personal income tax (NDFL) for individual entrepreneurs;
• single tax according to the simplified tax system, if the object of taxation “Income”
  .

Note

: tax under the simplified tax system
“Income”
can be reduced only if the tax and trade fee are paid to the same budget. For example, an individual entrepreneur registered in the Moscow region does not have the right to reduce the tax if he conducts trading activities and pays the fee in Moscow.

A direct indication that the tax can be reduced by the amount of the trade fee under the simplified tax system with the object “Income minus expenses”

No. Therefore, until official clarifications appear, the paid trade fee can only be taken into account as expenses incurred.

note

, the tax can be reduced only for the quarter in which the sales tax was transferred. Therefore, if the amount of the trade fee turns out to be more than the calculated tax, then it will not be possible to carry forward the remaining trade fee to reduce the tax in the next quarter.

How to show trading tax on profit tax return

Legal entities on OSN pay tax on profit, which consists of income reduced by expenses. The rate is 20%, and the payment is divided into 2 components - 2% - to the federal budget, 18% - to the local budget. If an organization has submitted a TS-1 notification to the Federal Tax Service, then the tax or advance on it, paid to the city budget based on the results of periods (reporting, tax), is reduced by the trade fee transferred from the beginning of the year until the day of payment of the profit tax or advance on it.

From December 2021, a new declaration form from order MMV-7-3 / [email protected] dated 10.19.16 is used. The need for a new form is due to innovations in tax laws, including the emergence of an obligation to pay a fee and the possibility of taking it to reduce profit tax.