REFORM OF THE OKVED SYSTEM
16/12/2021
On 01/12/2021, the Prime Minister of Russia Mr. Mikhail Mishustin instructed the Ministry of Economic Development of Russia and the Federal Tax Service of Russia to prepare changes to the system of application of OKVED (Russian Standard Industrial Classification of Economic Activities) codes. The following changes are planned to be done:
- OKVED codes will be determined based on the amount of revenue for the corresponding type of business activity. Legal entities or individual entrepreneurs will need to specify the types of activities that in total cover at least 80% of their total revenue. All the business activities which cover more that than 10% each of the total revenue should be specified.
- there are no limits on the number of business activities that the company is able to specify;
- the main type of activity will be those from which the company receives the highest revenue;
- if the revenue structure changes by more than 20% the company will need to update the OKVED codes;
- in order to correctly determine the types of activities for registration in the register, the companies can use a special service on the platform of the Federal Tax Service of Russia;
- the number of reporting forms will be reduced from 9 to 5, while 3 reporting forms will be generated automatically using digital services of the Federal Tax Service of Russia;
- the reporting process will also be greatly simplified — the unified register of data on OKVED will be operated by the Federal Tax Service of Russia
- submission of information by the companies on confirmation of codes in a single form will be carried out annually — for large and medium-sized companies as currently provided; for small and micro companies only if a change in revenue by more than 20% for the types of activities is occired.
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