About the new OKVED 2 in 2017, the purposes of its use and the structure of the species codes economic activity we talked about in our consultation. We will tell about the table of correspondence between OKVED and OKVED2 in this material.

The ratio of OKVED 1 and OKVED 2

Comparison of OKVED and OKVED2 allows us to conclude that there have been significant changes in the new classifier. Not only have many grouping codes changed, but the names of classes, subclasses, groups, subgroups and types of economic activity have also changed.

The correspondence of OKVED and OKVED2 codes can be demonstrated by presenting a comparison table of OKVED and OKVED2 in the context of some classes of economic activity, i.e. the first two characters of the OKVED code:

OKVED and OKVED 2: correspondence table

A more detailed comparison of OKVED 1 and OKVED 2 can be made on the basis of special transition keys developed by the Ministry of Economic Development of the Russian Federation and posted on the official website of the ministry in the section " All-Russian classifiers assigned to the Ministry of Economic Development of Russia".

These transitional keys are a table in which each OKVED 1 code is compared with the code in the new OKVED 2 classifier.

You can see that according to OKVED 2, the correspondence to OKVED 1 is not always 1: 1, that is, sometimes several codes in the new OKVED 2 correspond to the code according to the old classifier. For example, the following classes correspond to the provision of other types of services (code 74 according to OKVED 1) types of economic activity according to OKVED 2:

• 69 "Activities in the field of law and accounting»;
• 70 “Activities of head offices; management consulting”;
• 71 “Activities in the field of architecture and engineering design; technical testing, research and analysis”;
• 73 "Advertising activities and market research".

When using the OKVED and OKVED2 correspondence table, the transition from old codes to new ones does not present any particular difficulties. Moreover, such a transition according to the OKVED codes contained in the Unified State Register of Legal Entities and the EGRIP was carried out by the tax department automatically and independently, without the involvement of taxpayers.

If you want to check the correctness of the translation on new OKVED 2, and also, if necessary, to establish a correspondence between OKVED1 and OKVED2, you can refer to the OKVED 1 to OKVED 2 converter, which will be given below.

The table of correspondence between OKVED and OKVED2 codes in Excel format was developed by the Ministry of Economic Development and is the same transitional keys mentioned above.

In the table for the transition of OKVED to OKVED2, the codes and the name of the grouping according to OKVED1 are presented on the left side, and the corresponding codes and the name according to OKVED2 are presented on the right side.

You can download the comparison table of OKVED and OKVED2 in Excel format.

• physical and/or chemical processing of materials, substances or components with the aim of converting them into new products, although this cannot be used as a single universal criterion for determining production (see "recycling" below)

Materials, substances or transformed components are raw materials, i.e. products of agriculture, forestry, fisheries, rocks and minerals and products of other manufacturing industries. Significant periodic changes, updates or transformations of products are considered to be related to production.

The manufactured product may be ready for consumption or may be a semi-finished product for further processing. For example, an aluminum refining product is used as a raw material for the primary production of aluminum products, such as aluminum wire, which in turn will be used in the necessary structures; production of machinery and equipment for which these spare parts and accessories are intended. The manufacture of non-specialized components and parts of machinery and equipment, such as engines, pistons, electric motors, valves, gears, bearings, is classified in the appropriate grouping of Section C "Manufacturing", regardless of which machinery and equipment these items may be part of. However, the manufacture of specialized components and accessories by molding/molding or stamping plastic materials is classified in 22.2. The assembly of component parts and parts is also referred to as production. This division includes the assembly of integral structures from constituent components, either self-produced or purchased. Recycling, i.e. processing of waste for the production of secondary raw materials was included in group 38.3 (processing of secondary raw materials). While physical and chemical processing may take place, this is not considered part of manufacturing. The primary purpose of these activities is the main processing or processing of waste, which is classified in section E (water supply; sewerage, waste collection and disposal, pollution elimination activities). However, the production of new finished products (as opposed to products made from recycled materials) refers to all production as a whole, even if waste is used in these processes. For example, the production of silver from film waste is considered production process. Special maintenance and repair of industrial, commercial and similar machinery and equipment is generally classified in group 33 (repair and installation of machinery and equipment). However, the repair of computers, household appliances is classified in group 95 (repair of computers, personal and household items), while at the same time, repair of cars is described in group 45 (wholesale and retail and repair of motor vehicles and motorcycles). Installation of machinery and equipment as a highly specialized activity is classified in group 33.20

Note - the boundaries of manufacturing with other sections of this classifier may not have a clear unambiguous specification. As a rule, manufacturing industries involve the processing of materials to produce new products. Usually it's completely new products. However, the definition of what constitutes a new product can be somewhat subjective.

Processing implies the following types of activities involved in production and defined in this classifier:

• processing of fresh fish (extraction of oysters from shells, filleting of fish) not carried out on board a fishing vessel, see 10.20
• pasteurization and bottling of milk, see 10.51
• dressing of leather, see 15.11
• sawing and planing of wood; wood impregnation, see 16.10
• printing and related activities, see 18.1
• tire retreading, see 22.11
• - manufacture of ready-to-use concrete mixtures, see 23.63
• electroplating, plating and heat treatment of metal, see 25.61
• mechanical equipment for repair or overhaul (e.g. motor vehicle engines), see 29.10

There are also activities included in the processing process, which are reflected in other sections of the classifier, i.e. they are not classified as manufacturing.
These include:

• logging classified in section A (AGRICULTURAL, FORESTRY, HUNTING, FISHING AND FISH CULTURE)
• modification of agricultural products classified in section A
• training food products for immediate consumption on premises, classified in group 56 (activities of undertakings Catering and bars)
• beneficiation of ores and other minerals classified in Section B (MINING)
• construction and assembly work performed on construction sites classified in section F (CONSTRUCTION)
• breaking down large lots of goods into smaller groups and re-marketing smaller lots, including packaging, repackaging or bottling of products such as alcoholic drinks or chemicals
• solid waste sorting
• mixing colors according to customer's order
• cutting of metals according to the customer's order
• explanations of various goods classified under section G (Wholesale and retail trade; REPAIR OF MOTOR VEHICLES AND MOTORCYCLES)

The state enshrines the right to entrepreneurial and other economic activities in Article 34 of the Constitution of the Russian Federation. Citizens and organizations choose their own direction entrepreneurial activity. In the registration form, with the help of codes, the main, additional and other types of activity are indicated.

OKVED: what it contains and where it is applied

OKVED (All-Russian classifier of types of economic activity) contains code designations for economic sectors. In 2018, OK 029–2014, or OKVED 2, is valid. In the classifier, areas of the economy, such as production, Agriculture, construction, real estate transactions and others, are represented by codes. The coding is adopted in statistics to reflect information about each economic unit and is used for management purposes.

A business representative, indicating the branches of the economy in the registration form, becomes a participant in the process of systematization and collection of information by classes and codes.

The class is characterized by common features, and the grouping into classes occurs on the basis of a single methodological approach. The classification allows:

• collect statistical indicators of each representative of entrepreneurship;
• present indicators on economic sectors and tax regimes;
• summarize information at the state level and by region.

Video: in simple words about classification

Systematization of businesses by codes and classes

The classifier contains 21 sections. Each section corresponds to the type of economy. Each species is divided into classes.

Table: sections of OKVED 2

Entries in the classifier are marked with decryption codes. The decoding of codes is aimed at ensuring that each user of OKVED 2 understands among the areas of the economy and accurately indicates the code of his business. The number of digits determines the structural affiliation and specifics of the business. For example, core activity 68.20 Renting and managing own or leased real estate is classified in subclass 68.2 Renting and managing own or leased real estate. Subclass 68.2 is included in class 68 Real estate transactions. Group 68.20 includes codes:

• 68.20.1 renting and managing own or leased residential real estate;
• 68.20.2 lease and management of own or leased non-residential immovable property.

The designation of the code structure is given in the table.

Table: OKVED 2 codes

Detailing OKVED 2

Compared with OKVED 2001 OKVED classifier 2 contains more sections and nuances of division into types and classes. Decryption of codes takes into account topical areas economy and reflects the specifics of entrepreneurial activity. For example, if an entrepreneur indicates the code 68.20.1, then we are talking about renting residential real estate.

In the registration form, it is enough to indicate a code of four characters XX.XX without decryption.

Information about codes according to the All-Russian classifier of types of economic activity

Codes with decoding using the example of section L of OKVED 2 are presented in the photo gallery.

Photo gallery: OKVED 2, section L “Real estate activities”

Buying and selling own real estate renting and managing own or leased real estate activities of real estate agencies on a fee or contract basis management of real estate on a fee or contract basis

Sections of OKVED 2 with codes and decryption can be found.

Licenses, taxes and OKVED

A formal approach to specifying codes leads to difficulties in obtaining permits.

For example, in registration form the main code 47.73 Retail sale of medicines in specialized stores (pharmacies) was recorded. A decision is made to obtain a license for the production of medicines. Production of medicines, OKVED code 21.20, refers to licensed activities (FZ No. 99-FZ of May 4, 2011). The licensing authority will refuse a license in the absence of code 21.20.

Entrepreneurs enjoy tax preferences under the main OKVED code.

Entrepreneurs on the simplified taxation system (STS) by decision of the local authorities are set to a zero rate if the OKVED codes correspond to the production, social, scientific fields (Article 346.20 of the Tax Code of the Russian Federation).

How the codes and the choice of taxation regime are connected can be seen in the example.

The entrepreneur plans to sell books. For the sale of books in the store, the code 47.61 is provided. The code 47.91 applies to the sale of books via the Internet. The sale of books on the Internet is carried out on the simplified tax system. Selling books in a store is allowed under the simplified tax system and UTII (Single tax on imputed income).

Table: tax regime and OKVED code

Compulsory social insurance and OKVED

Insurance premium rates depend on the main OKVED code specified during registration. The insurance fund determines the risk class and premium amount by the code.

For example, retail via the Internet, code 47.91, belongs to the first class of risk, the rate is 0.2%. Mining and enrichment of coal and anthracite, code 05.10, belongs to class 32, the rate is 8.1%.

For organizations and entrepreneurs on the simplified tax system with income up to 79 million rubles, whose main activity code for OKVED refers to social sphere and production, in 2018 the rate of insurance contributions of 20% is applied. This applies in particular to entrepreneurs engaged in:

• food production - OKVED 10 (10.1–10.9);
• clothing production - OKVED 14 (14.1–14.3);
• repair of machinery and equipment - OKVED 33 (33.1–33.2);
• fitness activities (“activities of fitness centers”) - OKVED 93.13, etc.

According to paragraph 6 of Article 427 of the Tax Code of the Russian Federation, the type of economic activity is recognized as the main type of economic activity, provided that the share of income from the sale of products and services rendered in connection with it is at least 70% of the total income.

You can find out if your type of activity is “preferential”.

Table: IP insurance premium rates for the simplified tax system

OKVED 2: the procedure for entry into force and replacement of codes

In 2018, OKVED 2, or classifier OK 029–2014, is in force.

It was planned that OK 029–2014 would be applied from 01/01/2015. But the tax authorities were not technically prepared for the transition to OK 029–2014. The date of entry into force was postponed to 01/01/2016, and then to 01/01/2017. The Ministry of Justice of the Russian Federation on 06/16/2016 registered the order of the Federal Tax Service regarding the transition to OKVED 2. OKVED 2 entered into force on 07/11/2016.

the order of the Federal Tax Service was registered with the Ministry of Justice of the Russian Federation on June 16, 2016

OKVED 2 replaced the 2001 classifier. Entrepreneurs and organizations registered before 07/11/2016 do not need to contact the tax office to replace the codes. The tax authorities will independently transfer all business entities to OKVED 2.

OKVED 2 applies to individual entrepreneurs and organizations. The procedure for registering a business begins with the formulation of the type of activity. An accurate indication of the areas of business according to OKVED 2 allows you to get state support in the field of small business, reduce the burden of payments to the treasury, obtain the necessary licenses.

From July 11, 2016 at state registration legal entities and individual entrepreneurs, new OKVED-2 codes are applied. On June 28, 2016, the Order of the Federal Tax Service No. MMV-7-14 / came into force [email protected] dated June 16, 2016 on the transition to the use of the All-Russian Classification of Economic Activities OK 029-2014 (NACE Rev. 2) for state registration of legal entities, individual entrepreneurs and peasant (farm) enterprises.

When filling in the codes of types of economic activity in the application forms submitted to the registration authority during the state registration of legal entities and individual entrepreneurs, at least 4 digital characters are indicated.

What are OKVED codes and why are they needed?

In our country there is no commercial activities without bureaucratic interference. At the time of registration of an individual entrepreneur, he is given a special code and number. The entrepreneur undertakes to determine the essence of his business and undertakes to designate it with numbers.

All coding rules are contained in a document called OKVED. The abbreviation stands for "all-Russian classifier of types of economic activity." So, with the decryption, it seems, they figured it out. Further, OKVED 2017 codes acquired a new decoding by type of activity in 2017. For example, grouping code 01.11.13 would mean growing rye, and 01.11.15 would mean growing oats.

The following edition influenced the OKVED classifier in the new year. For example, OKVED-2 and KVED-2014 have lost their significance since January 1.

To make OKVED easier to read, dots are put after each pair of numbers. You could verify this by reading the text above. Note that the five-digit OKVED names a subgroup, and the six-digit one, in turn, names the type of entrepreneurial activity.

A legitimate question follows, why do entrepreneurs need these intricate encodings at all? We will answer: OKVED is simply necessary, including in order to keep statistics. Thus, the state encourages individual entrepreneurs to take part in the creation of statistics.

So why is OKVED so important? The fact is that not every type of entrepreneurship can be carried out by private entrepreneurs. The code determines the number of the enterprise in OKPO, that is, in the business group classifier.

It should be noted that there are types of commercial activities that can be carried out by individual entrepreneurs only with restrictions. Therefore, here OKVED is just as important and irreplaceable. Code selection plays big role when issuing a license for a specific type of commercial activity. OKVED also affects the system of taxation of entrepreneurial activities.

Correspondences of codes to certain types of activity are presented in tables posted on the global network. There is also online service"Small business. Ru" to identify these correspondences. For example, retail matches the number 52 at the beginning of the code, and wholesale number 51. If you do not know which OKVED corresponds to the direction of your company, then you can also go to RegForum.Ru and familiarize yourself with the table of codes existing there. This service will help you select the first two digits of the code. Gentlemen sole proprietors, be extremely careful, because the wrong OKVED choice entails a large expenditure of funds. By the way, punishable under the Law of the Russian Federation is the choice of the type of commercial activity, which individual entrepreneur is not going to do it, but advertises it in order to save money.

Sometimes an entrepreneur must make changes to OKVED. To do this, he needs a passport with a copy, an updated charter and all attached documents and an extract from state register, received no earlier than one month before the application for a code change.