OKVED - what is it? Explanation

In many documents used by modern commercial enterprises, codes of OKVED are indicated. What is their purpose? How does the owner of the company choose the correct code for the relevant classifier?

What is the purpose of OKVED?

A common, and therefore known not only to narrow specialists, the abbreviation OKVED - what is it? This term is deciphered as the All-Russian classifier by types of economic activity. In some cases, it is also referred to as the "code classifier" of economic activity, which in principle is quite logical, since in practice the OKVED is almost always used in the context of just the codes of economic activity.

Thus, the OKVED classifier includes a list of codes of economic activities of various enterprises that produce goods and services. In fact, this is an official document in the status of a legal act, which must necessarily be used by enterprises entering into various legal relationships. Which ones?

Legal relations with the use of OKVED

So, we know the decoding of the abbreviation OKVED. What kind of classifier is this from a practical point of view? As we noted above, it includes codes corresponding to certain types of goods and services produced by Russian enterprises. These codes can be useful to firms, in particular:

- directly upon registration with the Federal Tax Service;

- in the process of forming various types of reporting - for example, statistical, accounting.

There are several possible codes for the firm. Among them, as a rule, there is a relatively small amount - sometimes even only 1, basic, the rest - additional. It will be useful to consider these two methods of using OKVED in more detail.

OKVED codes when registering an enterprise in the Federal Tax Service

So, perhaps, the most important type of legal relations, within which the OKVED classifier can be useful - with decoding by types of activity, in particular, is the registration of a firm in the Federal Tax Service as an economic entity. This procedure is mandatory from the point of view of starting legal business by the founders of the enterprise.

In order to register with the Federal Tax Service, the owner of the enterprise submits to the Office documents on the established forms in which it is necessary to indicate the OKVED code corresponding to the firm's activities. If a particular code is incorrectly specified, that is, the actual direction of the economic activity of the enterprise will not correspond to it, then it can provoke increased attention to the work of the firm during inspections, sometimes - the refusal of the FTS to register the enterprise.

In addition, and when interacting with the FSS OKVED can come in handy. The law may provide for legal relations between private companies and this department on insurance issues, within the framework of which it is planned to transfer documents containing business codes to the FSS.

OKVED codes in reporting

The following relationship, in which codes can be useful, in which the activities of OKVED are reflected - formation of various types of reporting by the enterprise. In particular, statistical or accounting.

The fact is that in the documents that are formed in the relevant types of reporting, it is often required to specify these codes in order to accurately identify the economic profile of the enterprise.

Structure of OKVED code

So, now we know what the OKVED classifier is for, what kind of source it is, what are the practical nuances of its application. It will be useful to consider in what structure the code can be represented by the appropriate classifier. The principles for the formation of relevant indicators are determined by the competent department - the Ministry of Economic Development of Russia. As noted by some experts, Russian OKVED types were basic in the European classification and in many ways similar to them in terms of determining the lists of economic activities. In particular, the first 4 figures in the Russian OKVED for a particular type of activity generally correspond to those adopted in the international classification.

In turn, other figures reveal the characteristics of a particular segment of the economy in Russia. For example, if we have code 01.13.22 OKVED, its decoding from the point of view of the structure will be as follows.

The first 2 figures - 01 - indicate the scope of the company. In this case, agriculture. The third digit - 1 - indicates the fact that the economic entity carries out activities in the field of crop production. The remaining figures indicate the specific subgroup and plant species that the enterprise grows - in this case, nuts. It really corresponds to the marked code.

Note that these codes correspond to OKVED according to OK 029-2001. What it is, we will now consider.

In the event that an enterprise has a question "what kind of OKVED should be indicated in documents within the framework of certain legal relations," it is very important to choose the correct classifier of the corresponding codes. The fact is that in Russia there are actually 3 of them. How should the correct source of codes be chosen?

Which classifier should I use?

Indeed, now in Russia there are 3 classifiers OKVED. What is this peculiarity of legislative regulation?

The first classifier of the appropriate type was introduced in the Russian Federation in the early 2000s. This is the document OK 029-2001. For a long time, it was used as a source of data when registering enterprises and processing documents in the framework of other legal relationships.

Later, another classifier of economic activities was introduced - OK 029-2007, but its application is carried out within a fairly narrow range of legal relations, which are mainly related to the collection by the competent state bodies of various types of statistical data. In general, it is not used by commercial enterprises.

Subsequently, another classifier was introduced - OK 029-2014, while the first one was not canceled. For some time the order of their application was rather superficially regulated by the legislation. The agencies responsible for the tax reporting of enterprises - as the most important legal relationship with the participation of economic entities - have developed a rule according to which those firms that registered with the Federal Tax Service prior to the introduction of OK 029-2014 in circulation may not take any action to re-register their codes OKVED.

Use of OKVED: normative regulation

In turn, when adding new information about enterprises to state registers, it is necessary to use a new classifier. In a letter dated 11.07.2016, the Federal Tax Service provided appropriate explanations.

Thus, the very first classifier is not used in practice, although the data transferred to the FTS during its application can be reflected in state registers. If necessary, as can be traced, by studying various legal acts from the Federal Tax Service, the relevant agency can independently translate the codes of economic activities of the old format into newer ones. Document OK 029-2007 is used quite rarely. Source OK 029-2014 is now used as the main one. Therefore, when registering a company, as well as changing information about OKVED in the manner that we will consider later in the article, it is necessary to use codes from the appropriate source.

It is recommended when choosing OKVED codes - services, the products produced by the enterprise can be very different, and its founder does not always manage to find the correct conformity to them in the considered classifier - to apply for consultations to the specialists of the Federal Tax Service directly when registering the enterprise. Or to competent specialists in specialized companies.

In this connection, the choice of the type of activity of the company according to OKVED is necessary for the enterprise?

The importance of OKVED: economic classification

First of all, this is due to the fact that the competent state bodies, primarily responsible for collecting statistics on economic entities, assign to the firm a specific number in other classifiers. For example, OKPO. The given operation is carried out by bodies with a view of definition of branch specialization of the enterprise.

OKVED as an indicator of business legality

The following nuance: it is necessary to correctly indicate the type of activity for the OKVED firm that the state bodies can unequivocally determine that it is engaged in a legal activity. The fact is that some of the types of management can not be carried out by private firms. If you accidentally specify the code of OKVED for one of those that relate to these areas of activity, the Federal Tax Service may refuse to register business.

OKVED and the capital

Another reason for the necessity of correctly reflecting OKVED in official documents is that in certain types of activities, fairly large indicators on the company's minimum authorized capital may be legislatively established. What does it mean? First of all, if the founder of the firm indicates a code corresponding to this type of activity and does not provide sufficient amount of authorized capital, then the supervising bodies may apply different sanctions to it.

OKVED and contributions to the budget

Activities under OKVED may be classified differently based on statutory requirements for firms to pay contributions to state funds, to the budget. Therefore, in order to avoid increasing financial obligations to authorities, it is necessary to record correct codes in the official documents on the classifier of economic activities.

How do I find the code I need?

Consider how, if other options are not available, you can search for the optimal code of economic activity in the current classifiers. We agree that we have OK 029-2014 at our disposal.

First of all, it is necessary to determine the main type of the firm's activity proceeding from the fact that it is in essence. In accordance with this parameter, we search for the corresponding section. In the OKVED classifier, the decoding of codes begins with Latin letters. For example, the letter F corresponds to a type of economic activity, such as "Construction." In this section there are 3 possible groups: 41 - buildings, 41 - engineering facilities, 43 - construction work.

We agree that our company builds buildings, so we choose group 41. It has, in turn, 2 subgroups: 41.1 - development of projects, 41.2 - construction. Since we are engaged in the second activity, we choose the appropriate subgroup. Within the framework of it there is one specific type of activity with code OKVED 41.20 - construction. We also indicate it when registering a company, as well as other documents within the framework of legal relationships in which the enterprise will participate.

How do I change the code?

There may be situations in which the organization will need to change the code of economic activity previously registered in the Federal Tax Service. Solve this problem can be quite simple. It is necessary to apply again to the Federal Tax Service and transfer the application there according to the established form, in which new OKVED codes should be indicated. To transfer the relevant application to the agency, the owner of the company will also be required to produce:

- passport;

- a fresh extract from the register - which is issued not earlier than 1 month before the application to the Federal Tax Service for the change of codes of economic activity;

- OGRN certificate;

- constituent documents;

- an official decision on the adjustment of activities.

The last 2 documents to the owner of the company will need to be prepared in confirmation of OKVED, information about which is adjusted in the state register. Thus, changes to the relevant sources should be made in advance, before applying to the Federal Tax Service on the issue in question. Also, when making adjustments to state registers, it is necessary to pay a state fee. That is, to the documents listed above, you will also need to add a receipt for its payment.

Choice of economic activity codes: nuances

What are some of the nuances when working with the codes in question?

So, let's note that in the legislation of the Russian Federation there are no bans on indicating the types of economic activities that the firm is not actually going to do. However, it is desirable to indicate them as additional, rather than basic ones.

When classifying codes for primary and secondary codes, it is recommended first of all to consider the amount of income for one or another area of activity. OKVED, corresponding to the most profitable, should be fixed as the main one.

When applying the appropriate codes, it is also desirable to ensure their uniformity as specified in the various documents. For example, if one OKVED is registered in any reporting source, then in the other that is sent to the same department, the same should be reflected.

The individual entrepreneur needs to choose the activity that will bring the greatest income. It will become the main one for OKVED. In addition, you can select additional codes. If there are problems in the definition process, you can use the classifier application (it contains detailed descriptions of all activities). It is worth noting that licensing is provided for certain activities.