The OKVED code for IP is a certain combination of numbers, in which the type of activity of the entrepreneur 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 IP literally stands for All-Russian Classifier of Economic Activities. Its main goal is to encode the type of activity for convenience, as well as to obtain quick information about a particular entrepreneur.
The classifier itself encrypts information on the legal form, form of ownership and departmental subordination.
By the way, according to OKVED it is impossible to understand the commercial or non-commercial activity of the organization or what trade it is engaged in - external or internal. This is reflected solely in the Charter of the company.
For OKVEDa the hierarchical classification method is selected. Encryption of activity occurs sequentially.
How to choose OKVED?
When a future entrepreneur decided to open his own business, first of all, he must decide what sphere he will work in. For example, he decided to open his online store. So, he needs to consider OKVED codes for IP in the "trade" section. Some owners of online stores make a mistake by indicating the courier services code and forgetting that their main profit comes from sales, and not from delivery services.
If an entrepreneur has only one main area of activity, and other activities bring him only minimal income, then he is not obligated to indicate it in the tax service and this is not considered any violation. However, if a person still decided to develop several areas of services, then in this case he is advised to carefully study the list of classifiers and choose those that he needs.
Where is OKVED used?
What are these codes for and where can I find them? This question is of interest to many aspiring entrepreneurs.
The first time you may encounter codes when filling out a tax application for registration. There you need to specify OKVED codes for IP with decryption. It is interesting that their number is not limited by law, however, the size of mandatory contributions for entrepreneurs depends on the main activity.
You can also encounter OKVED in:
- various regulatory documents;
- state register (there is a complete record of the activities of all registered organizations and entrepreneurs);
- other documents of international level;
- the charter of the organization.
Also, an entrepreneur may repeatedly encounter a list of codes if they are added or deleted. This happens, for example, in those situations when the company decided to change the main direction of its activities or completely stop it.
OKVED and taxation systems
- The general taxation system (OSNO) includes absolutely all types of OKVED for SP. The same codes are used for LLC.
- The simplified tax system (STS) includes the largest list of classifiers. It is worth noting that with the simplified tax system, codes 65.2X and 66.0, 66.02, 67.12 and 66.22.6 cannot be specified.
- Unified Agricultural Tax (UPC). Such a tax system is suitable only for a narrow range of activities. Classifiers for UCNS are suitable only for certain, or rather, only those that begin with 01.
- Single temporary income tax (UTII) and patent. No classifiers are provided for this tax 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 IP 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 IP activities. OKVED for them can be found in the existing list of OK 029-2001.
The most common categories for entrepreneurs were recognized:
- commercial activities and consulting services;
- design in advertising and on the Internet;
- translations;
- marketing;
- architecture, interior design;
- website promotion;
- rental of real estate;
- real estate activities;
- journalism.
Activities from these categories are most often indicated as the main direction of the entrepreneur. Also, the same classifiers can be indicated as additional activities.
How does the number of indicated OKVED affect insurance premiums?
If an entrepreneur decided to indicate several OKVED codes for an individual entrepreneur, then, naturally, he will be interested in whether their number affects the size of insurance premiums?
So, each classifier has its own class of professional risk. According to Article 1 of the Federal Law 356-ФЗ dated November 30, 2011, the amount of compulsory insurance premiums for entrepreneurs is regulated depending on this class.
The very amount of the indicated OKVED will not directly affect the size of insurance premiums for the entrepreneur, however, they will vary depending on the class of professional risk that is set for one or another classifier. The higher the risk class - the larger the premiums.
Selection of core business
As mentioned above, in order to accurately determine the choice of classifier, it is necessary to study the appropriate OKVED lists for IP with decryption. The main activity is considered to be the one from which the entrepreneur will receive his main income. Also, the main activity must necessarily fit the selected tax system. Non-compliance with these requirements threatens the entrepreneur with a substantial fine.
In addition, if it turns out that the classifier does not correspond to the main type of activity, then in this case the entrepreneur will be interested in the relevant services, including the Social Insurance Fund, which establishes the class of professional risk.
If it becomes known that the entrepreneur is trying to reduce the size of his insurance premiums, and the employees at his enterprise are at the same time at risk of developing occupational diseases, then the individual entrepreneur will not be able to avoid a fine or even a stoppage of activity.
Indication of additional OKVED codes
Of course, an entrepreneur can specify only one activity code - the main one, but experts recommend not limited to this, otherwise the question will later arise: how to add OKVED for SP?
So, an entrepreneur can really indicate an unlimited number of classifiers. Moreover, as indicated above, it can carry out activities without the indication of an OKVED, but only if the profit from it is considered insignificant. If the entrepreneur decided to provide other services, then he needs to contact the tax authority, add the classifier to his list of activities and report this to the social insurance fund to recalculate the compulsory insurance premiums.
Despite the fact that the impression is visually created that this procedure is not at all complicated, this is not entirely true. The fact is that some activities fall under licensing. When passing through this procedure, all classifiers must be indicated and if later the entrepreneur decides to add another type of activity, then he should go through all the licensing again, which takes a lot of time and requires financial investments.
