Unauthorized street trading at an unspecified location. How to get a permit to trade on the street

Illegal trade - illegal sale of goods with the absence of a formalized status of an entrepreneur. The most common type of illegal trade is unauthorized street trading in places with high traffic of people.

One of the popular places for trading in Moscow is metro entrances, passages, busy streets. Illegal trading on the street entails an administrative penalty in the form of a fine. In addition, all unlicensed goods will be confiscated. The maximum punishment that can overtake sellers is arrest, lasting up to six months.

Fine for unauthorized street trading in Moscow

Trading in unspecified places without violating the law is possible in two cases:

sale of flowers in retail or small wholesale;
sale of products of own production during the fair.

But both cases require special permission from the administration, which controls the trading area where business activities are carried out. Fairs are strictly regulated by the city administration.

Trade is considered illegal in the following cases:

product infringement of copyright;
distribution ban;
harmfulness of the goods;
propaganda of discrimination;
sale of goods without a license.

The penalty for illegal trading varies depending on the type of violation:

for the lack of registration of an entrepreneur or organization, a fine in the amount of up to 2 thousand rubles will be imposed;
for the absence of the necessary documents, licenses or permits, the fine for an individual will be equal to 2.5 thousand rubles, for an official - 5 thousand, for an organization - 50 thousand.

Fine - administrative responsibility. In addition to it, tax liability or criminal liability may be assigned. The Criminal Code of the Russian Federation comes into force for punishment when the profit of the outlet exceeds 1.5 million rubles.

Currently, there are several reasons why illegal trade is still common on the streets. First of all, the actions of the police do not have the desired effect on the sellers. The population itself considers retail outlets to be more profitable than chain stores, since they set low prices and are located in accessible places.

On the legality of the organization of trade, you can get advice from experienced professionals from the Right Decision Company - this will help you properly organize your further actions.

Permit for street trading

Street trading includes the sale of goods outside the territory of shopping centers and shops. The most common street vendors are cars and caravans, as well as tents. In order to trade legally, it is necessary to register an individual entrepreneurship or a legal entity. Registration is carried out in the tax authority. Failure to register with the tax service entails a fine of 10% of income, but not less than 40 thousand.

The procedure for obtaining a permit for street trading is regulated by certain provisions in the legislative documents of the Russian Federation. Responsibility for ignoring this procedure is established by the Code of Administrative Offenses of the Russian Federation.

In order to obtain a permit, it is necessary to prepare documents in stages. Initially, the supervisory services are notified of the intention to conduct street trading. Next, you should prepare an application and send it to the local government. The last stage is the coordination of trade with the sanitary and epidemiological service.

It is important to obtain all permits in advance in order to engage in trading activities and avoid fines. Preparation of documents and further transfer can take place both personally and with the help of representatives. Contacting the Legal Solution Company will eliminate possible problems in the process of obtaining a permit, as the specialists have vast experience in obtaining permits.

Unauthorized trade (article of the Code of Administrative Offenses) - the sale of goods or food products outside the premises:

from cars, trailers;
from independently erected tents;
from trays directly on the ground, sidewalks, along roads.

Pensioners, migrants, illegal entrepreneurs are engaged in unauthorized trade. Unauthorized street trading in an unidentified place creates a negative image of the city, litters the territory, and is conducted in violation of sanitary standards.

Illusion of the harmlessness of unauthorized trade

Often unauthorized trade is conducted directly from the ground. Street vendors do not have any permits or sanitary books confirming the safety of the purchase. Thus, in unauthorized trade, there are no documents confirming the safety of food and manufactured goods.

Behind a grandmother selling knitted things or greenery on the street, there are often dealers who have put the trade on stream. Such facts of unauthorized trade were repeatedly disclosed by law enforcement officials.

District police officers carry out raids on the assigned territory, with the task of identifying places where unauthorized trade is present. Persons conducting illegal sales are warned about the illegality of the actions taken and must vacate the wrong places. In case of refusal, police squads are called, protocols on administrative violations are drawn up against offenders, fines are imposed for unauthorized trade.

Where to report unauthorized trading

In some cities of the country, street trading is completely prohibited. For information on whether trading is allowed on the streets of your city, you can get information from the district department of the consumer market. You can complain about unauthorized trade to the district administration of the city, the Ministry of Internal Affairs (Department or Department of Economic Security), law enforcement agencies (police), tax service. A complaint about unauthorized trade can also be sent to the prosecutor.

In Moscow, you can complain about unauthorized trade to the same authorities. You can leave a message about unauthorized trade in St. Petersburg on the website of the Administration http://rgis.spb.ru/map/PromoMapPage.aspx

Unauthorized trade: article of the Code of Administrative Offenses of the Russian Federation

Legislation provides for certain liability for unauthorized trade. Its implementation without registration by citizens of an individual entrepreneur or the status of a legal entity entails a fine for unauthorized trade from 500 to 2000 rubles.

Doing business without a license, if one is required, is punished in the following order:

citizens can pay 2000-2500 rubles;
officials - 4000-5000 rubles;
legal entities - 40,000-50,000 rubles.

In addition to the fine, products, raw materials, equipment are subject to confiscation. Trading activity in violation of the license (if any) entails a fine:

1500-2000 rub. from citizens;
3000-4000 rub. from officials;
30000-40000 from legal entities.

Entrepreneurial activity with gross violations of the license entails the suspension of the IP for up to 90 days.

To sell old clothes or furniture, it is not necessary to contact the tax office and issue an IP. But what if you sell 5-10 items on Avito and do it every month. Should I expect a fine from the tax authorities for illegal trade without an individual entrepreneur? In the article, we will analyze in detail when the sale of goods and services falls under the Criminal Code, and when it does not.

When is IP registration required?

The definition of entrepreneurial activity is enshrined in Art. 2 of the Civil Code (CC) of the Russian Federation. This is an independent activity aimed at systematically making a profit from the sale of goods, the performance of work, the provision of services or the use of property. Key word "systematic". Selling old things that we do not use will not be a systematic income. For such actions, there is no liability under the Code of Administrative Offenses (CAO) or Art. 171 of the Criminal Code of the Russian Federation "Illegal business".

On the other hand, a citizen (that is, an individual) has the right to do business only from the moment he registers as an individual entrepreneur. This provision of the law is enshrined in Art. 23 of the Civil Code and Art. 83 of the Tax Code. In other words, it is legally possible to receive regular profit from trading only if you have the status of an individual entrepreneur. And if the tax authorities manage to prove that the sale of unnecessary household belongings, gadgets or needlework is a regular activity, you will have to pay a fine.

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Responsibility for trading without registering an individual entrepreneur

Illicit business harms the state, which does not receive tax revenue. And the employees of the “gray” entrepreneur are infringed on their labor rights. Russian legislation establishes different types of liability. Most often, the case ends for the violator with a fine for trading without registering an individual entrepreneur. But the court may impose a more serious punishment.

Illegal entrepreneurial activity, which includes, for example, trading on the market without registering an individual entrepreneur or trading via the Internet, is punishable by various types of liability - administrative, tax and criminal. What trade without registering an individual entrepreneur threatens in 2018-2019 is described in the table below.

Type of responsibility	Punishment	Legislative act establishing liability	Note
Administrative	Fine from 500 to 2000 rubles.	Article 14.1 of the Code of Administrative Offenses "Unauthorized trade"	This is the "lightest" article under which the court can impose a punishment. The amounts that the illegal trader will help out will be quite modest
tax	a fine of 10 thousand rubles. or in the amount of 10% of income	Article 116 of the Tax Code of the Russian Federation "Violation of the procedure for registration with a tax authority"
Criminal	fine, compulsory work forced labor, arrest.	Article 171 of the Criminal Code of the Russian Federation "Illegal business"	The most serious type of liability, which applies when the activity without registration has led to serious consequences, for example, infliction of large damage, or the extraction of large profits from illegal trade. A large amount (damage or income) is recognized as a cost (damage or income) in the amount of more than 1.25 million rubles, and especially large - 9 million rubles.

A fine for the sale of goods without an IP is not the only type of administrative responsibility in the field of trade. For example, there are penalties for:

trading without a license (if one is required);
distribution of counterfeit products;
sale of goods that are limited in circulation or expressly prohibited;
a fine for trading in the wrong place and others.

When can I trade without registering an IP

When selling vegetables and herbs grown in the country, you will not face a fine for unauthorized trade. This is enshrined in Part 4 of Art. 2 of the Federal Law of 07.07.2003 No. 112-FZ "On personal subsidiary farming". The document states that agricultural products that are produced and processed on personal subsidiary plots are not an object of entrepreneurial activity. Income from its sale is not taxed if the conditions described in paragraph 13 of article 217 of the Tax Code of the Russian Federation are met:

the total area of the plot (plots) does not exceed the maximum size of 0.5 hectares (clause 5, article 4 of Law No. 112-FZ);

the taxpayer does not use employees in accordance with labor laws.

Will there be new penalties for trading without IP in 2019

From 2019, the legislation governing entrepreneurial activity may change with the introduction of taxation for self-employed citizens. The corresponding document has passed several readings in the State Duma, after the final adoption it must be approved by the Federation Council and the President of the Russian Federation. The main goal of the law is to bring out of the shadows citizens who receive income from any activity on a regular basis, but who do not register as individual entrepreneurs. It is assumed that for some categories of citizens there will be a simpler procedure for registering with the tax authorities than when registering an individual entrepreneur.

Along with work on the law on the self-employed, deputies from United Russia proposed tougher penalties for entrepreneurial activity without registration, including an increase in the fine for illegal trade. This initiative is substantiated by the fact that the existing minimum amounts that are punished are significantly lower than the state duty levied when registering a citizen-entrepreneur.

A seller evading legalization will pay a fine for trading without registering an individual entrepreneur in 2018 from only 500 rubles, and the duty is 800 rubles. The proposed initiative is still being discussed, it is known that it has found support in the Ministry of Justice. Today it is difficult to say whether this idea will take shape in the form of a law in 2019. But in terms of the course. taken by the state to tighten fiscal policy, this is a very likely scenario.

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The question of whether it is possible to trade without an individual entrepreneur is relevant for a fairly large number of Russians. Among them there are those who do not want to pay taxes at all. But many people simply hesitate to register because of uncertainty about the success of their new business. Beginners want to try first: what if nothing happens?

The owners of online stores are also thinking about the need to register an IP, believing that their income is not subject to taxation. This is a common misconception. There are signs of entrepreneurial activity defined by law, and online trading is fully consistent with them.

In fact, there is nothing wrong with official registration, while trading without registering an individual entrepreneur is an offense for which tax, administrative and even criminal liability is provided. The exception is the sale of crop and livestock products obtained in the subsidiary farm or in the country. It is hardly worth starting your business by breaking the law.

Benefits of registering as an individual entrepreneur

The procedure for issuing an IP is extremely simplified. Registration with the tax authorities is carried out by submitting an application. The amounts of tax are quite feasible, especially in cases of applying special regimes (UTII, USNO) or a patent. But the status of an entrepreneur opens up great opportunities for doing business:

conclusion of official contracts with suppliers;
access to credit resources;
bold promotional activities;
receiving state support;
the possibility of obtaining a labor pension in the future;
the main thing is consumer confidence and increase in sales.

Engaging in trade involves continuous business development: expanding the range, increasing turnover, leading to greater profits. Working underground, it will not be possible to achieve the desired results.

Successfully trading without registering an individual entrepreneur is possible only if the activity is carried out by a legal entity, such as an LLC. But it is more profitable and more convenient for a novice businessman to obtain the status of an individual entrepreneur. Documentation in this case is minimal. To prepare reports, you do not need to hire an accountant, it is not difficult to keep records on your own. In addition, there are many services on the Internet for filling out tax returns and other necessary documents. If things don’t go at all, which happens very rarely, you can close the IP in 1 day.

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What is a business activity?

When revealing the fact of sale without registering an individual entrepreneur (any goods), excuses that this is not an entrepreneurial activity will not help. Even if the seller has another main job.

Based on the content of Art. 2 of the Civil Code of the Russian Federation, it is possible to identify the main criteria by which the fact of entrepreneurship is established. Economic activity (trade, provision of services, performance of work, leasing of property) must be independent, systematic and aimed at making a profit.

The acquisition of any product and its further resale with a margin (even if minimal) implies a profit. At the same time, the place of trade does not matter: a market, a garage, just a street or an online store. Systematic activity is considered if it is carried out more than once a year.

The legislator provided an opportunity for gardeners, gardeners, summer residents, owners of personal farmsteads to trade in the grown crop without any registration. According to Art. 217 of the Tax Code of the Russian Federation, the sale of livestock products produced in a private household is not subject to taxation. Do not belong to the number of entrepreneurs and amateur flower growers.

It is necessary to conclude an agreement with the administration of the market or other trading enterprise on the territory of which the sale of these goods is expected, on the provision of a place to work. At the same time, it is necessary to have a certificate confirming that the products are actually produced in a private household or in a summer cottage. Such a certificate can be obtained from the district, rural administration, as well as from the board of the horticultural, gardening partnership or dacha cooperative.

In other cases, regular trading without proper documents is impossible. After conducting a test purchase, employees of regulatory authorities will easily establish the fact of trade without registering an IP, and record an offense. Then the inevitable sanctions will follow.

Novice businessmen often do not know whether it is possible to trade without an individual entrepreneur if an application for registration has already been submitted, but a certificate has not yet been received. In this case, commercial activity is also considered a violation. In practice, if there are documents confirming the filing of an application for tax registration, one can count on the indulgence of inspectors. But it’s better, of course, not to take risks, but to wait for the certificate to be received (only 5 days) in order to protect yourself from possible troubles.

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Consequences of trading in the absence of a registered IP

The activities of entrepreneurs who have not registered as an individual entrepreneur or LLC are not legal and lead to the bringing of the perpetrators to administrative, tax and criminal liability.

According to Art. 14.1 of the Code of Administrative Offenses, the amount of an administrative fine can range from 500 to 2000 rubles. More impressive amounts of fines are provided for in Art. 116 of the Tax Code of the Russian Federation. For violation of the deadline for tax registration, you will have to pay 10,000 rubles, for work without registration - 10% of the income received, but not less than 40,000 rubles.

Criminal prosecution occurs if the income of the perpetrator exceeded 1,000,000 rubles (Article 171 of the Criminal Code of the Russian Federation). However, newcomers are unlikely to receive such a significant income, so criminal sanctions are rarely applied. This circumstance should not reassure offenders. The amount of administrative and tax fines is quite significant.

It should be noted that the imposition of a fine does not relieve the merchant from the obligation to pay taxes accrued for the entire period of work without proper registration. In addition, penalties and fines for late payment of tax will be added.

Official registration of a business allows you to avoid high costs of paying fines and opens up broad prospects for developing your own business.

The main one today is the interpretation of a continuing offense given in paragraph 14 of the current Decree of the Plenum of the Supreme Court of the Russian Federation dated March 24, 2005 No. 5 “On some issues that arise with the courts when applying the Code of Administrative Offenses of the Russian Federation”1 (hereinafter - ...

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