Who will not be able to work for UTII in 2020?

General trend of changes in 2019-2020 in the Tax Code of the Russian Federation

Law dated September 29, 2019 No. 325-FZ “On Amendments to the Tax Code of the Russian Federation” supplemented and amended the section of the Tax Code of the Russian Federation devoted to the tax on imputed income (UTI), which should be abolished in 2021.
A number of amendments are designed to make the transition from a tax system with UTII to a tax system without such a special regime smoother. At the same time, new restrictions on the use of UTII should reduce the number of taxpayers using and planning to use the special regime. The authorities do not intend to extend the special regime. This is also indicated by the Federal Tax Service on its website. And he calls on people with money to think about the tax regime for next year now.

Those who do not make a choice by the end of 2020 will automatically be transferred to OSNO. The Federal Tax Service also reports this. To help taxpayers, it offers its “Selecting an appropriate tax regime” service.

Organizations won't have to choose for long. Of the special modes, only simplified mode is available to them.

Individual entrepreneurs have more choice:

you can switch to the simplified tax system;
buy a patent;
or become self-employed.

For companies and individual entrepreneurs who independently make a choice in favor of OSNO, we recommend this article.

There is less and less time left to make a decision. Therefore, it is worth addressing this issue right now.

As for the block of innovations that came into force on January 1, 2020, they raised some questions for which there are no answers yet. Obviously, we should expect either detailed explanations from tax authorities or another revision of the Tax Code of the Russian Federation.

Let's look at such questions and the latest news for UTII students on January 1, 2020.

Governmental support"

The presence of restrictions and reservations did not prevent traders, carriers or service sector workers from working quietly, but the state actively put a spoke in the wheels. To ensure that taxpayers do not become complacent, they are kept on their toes by confusing legislation and regular updates to the legal framework.

The coefficient K1 , mentioned above, grew slowly but surely every year. In 2013 its value was 1.569, in 2020 - 1.915, from January 1, 2020 - 2.009. Only in the period 2015-2017 did the value remain unchanged, probably due to the sharp protests of entrepreneurs and the presidential elections in the spring of 2018. It was impossible to offend the electorate!

Controversial situations with the interpretation of legislation constantly baffle businessmen; even letters from the Ministry of Finance cannot save them. Some cases have not yet been resolved.

For example, many tattoo parlors and beauty salons operate on the edge of the legal field. This is because, by law, tattoos and permanent tattoos are classified as medical services, not cosmetic, so they are not subject to UTII, and they also require a license. Individual craftsmen are especially unlucky - complete legality will cost them too much. What remains is either “sign up for eyebrow training, girls” on social networks or open work with the risk of fines.

Online cash registers have already set teeth on edge with their mention. The introduction of modern software that transmits data online to the tax office has become a turning point for tax payers. Now it is much easier to control your income.

Bank cards have become a part of our lives. Even 80-year-old grandmothers successfully pay with them in the store. Young people are even more “in the know”; they are familiar with all payment methods, from traditional plastic cards with a PIN code to contactless payment with a smartphone. Don't have the device you need in your store? Customers will get tired of hearing the answer “pay in cash” and they will go to a more active competitor. Yes, there is no direct connection between contactless payments and UTII, but here we are talking about the same control.

Labeling has already affected some products - cigarettes, alcohol. Now it includes shoes and fur products (we expect prices for women's dream objects to rise in winter). The government's ambitions are not limited to this. Legislators expect total control over all goods along the chain from manufacturer to private buyer.

Non-retail sales = BASIC

The first restriction in force since 2020 is the abolition of UTII for non-retail trade. In the new edition of clause 2.3 of Art. 346.26 of the Tax Code of the Russian Federation now specifically prohibits those using UTII from conducting any trade transactions that do not fall under the “retail” category.

Attention! Within the meaning of Art. 346.26 of the Tax Code of the Russian Federation, in case of violation of the conditions for the use of UTII, the taxpayer is considered to have switched to OSNO (and only to OSNO) from the beginning of the quarter in which the violation occurred.

It will not be possible to transfer unscheduled non-retail sales to some other regime (for example, simplified tax system) during the year. Just as it will not work to leave other retail on UTII, and according to OSNO pay taxes on only one non-retail sale. So far, the new edition of the Tax Code of the Russian Federation does not contain any clarifications or exceptions.

It turns out that if the UTII payer “stumbled” once after 01/01/2020 by making a sale of goods, which is mentioned in Art. 346.27, as a non-retail business, he loses the right to apply UTII (irrevocably) and will automatically be on OSNO from the first day of the quarter in which he “stumbled.” With no exceptions.

There is another gap in the new rules - what about those who trade retail on UTII and wholesale on a different taxation system? According to the new version of Art. 346.26 of the Tax Code of the Russian Federation, it turns out that in principle it will be impossible to combine UTII in this way. If you need both wholesale and retail on UTII, you will have to split the business. For example, for retail - one legal entity on UTII, for wholesale sales - a second one under a different tax regime.

For detailed information on what does not apply to retail trade under tax law, see our section.

End? Cancellation of UTII from 2020

Many people liked UTII for many years, it was a chance for small businesses to start up and develop, but legislators looked and are looking at UTII very “squint” - the abolition of UTII from 2020 is a practically resolved issue, it’s all about the “little things”. The abolition of UTII at one point was the idea of officials, but it was not possible to implement it; the last attempt led to the extension of the deadline for the abolition of UTII in Russia - in 2016 it was decided that UTII would exist in the country until the end of 2020. However, even the remaining couple of years will not allow the business to work on UTII in peace - a revolution with online cash registers is not enough, and from 2019 there will be a strict restriction on the use of UTII.

That is, the path to abolishing UTII from 2020 is precisely a path, and not its abrupt end. And this path will become very short for many - UTII, and at the same time the patent (PSN), will not be able to be applied from January 1, 2019 to businesses that sell labeled products. In principle, this should not be a surprise, firstly, they have been talking about the abolition of UTII for a long time, and have been preparing it for a long time, and secondly, the Federal Law of December 31, 2017 No. 487-FZ initially led to the fact that the list of mandatory goods would expand to marking. What, in fact, the government of the Russian Federation did was to expand this list (resolution No. 792-r dated April 28, 2018), including various clothing products, car tires, some perfumes, cameras (now the Russian Zenit camera will be able to be sold only after being labeled - so that the price tag, apparently, goes from sky-high to cosmic). As has happened more than once, new changes will be an opportunity for someone to make money - labeling, like online cash registers, will not be free, these will be business costs, but it is not yet known what. In general, the times of UTII are becoming a thing of the past; once the officials have started to drown, they will finish it to the end. After all, the media received information that, according to some estimates, budget revenues will increase by 30% (after the abolition of UTII), and this cannot but interest tax collectors. After all, formally they are not violating Vladimir Putin’s instructions, there are no new taxes or almost no ones, and the old ones are not increasing or almost not increasing (VAT 2020, of course, let us down - it has increased!), but it will be impossible to use the preferential tax system. Actually, as with contributions, imperceptibly among the contributions a contribution appeared that is no different from a tax - that same one percent. And formally, of course, everything is fine, taxes are not rising.

In total, the abolition of UTII will begin in 2020 and will last until the end of 2020; in general, this tax system will not exist for long. What should businesses and accountants do? Look for a suitable solution, of course! For now, the final picture is still being formed, and it is worth following the news and analytics, and at the same time thinking through options. In purely technical terms, there will be fewer problems, especially for those who use online accounting. Conventional accounting programs will require a call from a programmer, as well as consultations, time expenditure and who knows what else, but online accounting changes the tax system at the user’s request, free and quickly! The most popular and powerful at the moment, and even with an eye to the coming years, is the SKB Kontur company, which has been developing for almost 9 years.

Is the product labeled? This is not retail!

Having complicated the use of UTII for retail trade, legislators have simultaneously expanded the list of goods the sale of which is not considered retail.

Thus, from 01/01/2020, retail sales of goods subject to mandatory labeling are not considered. This is an innovation in Art. 346.27 of the Tax Code of the Russian Federation was also introduced by the Law “On Amendments to the Tax Code of the Russian Federation” No. 325-FZ.

Therefore, when analyzing the possibility of remaining on UTII for retail trade in 2020, check whether your goods are subject to mandatory labeling.

You can find out which products are subject to labeling from our publication.

And you can read about innovations in the labeling of shoes and tobacco products from 07/01/2020 in the Review from ConsultantPlus. Trial access to the legal system is free.

Cancellation of UTII in the Perm region

The Perm Territory is the only region that did not wait for the general abolition of the single tax on imputed income in 2021, but did it a year earlier. The decision was justified as follows: the special regime is used to evade taxes.

Despite the mixed reaction at the municipal level, by mid-November virtually all territorial units of the region abolished UTII. So far, the issue remains unclear for organizations and individual entrepreneurs doing business in the Gainsky District and Bolshesosnovsky District.

For the remaining territories of the Perm Territory (44 out of 46), the ban on UTII has been approved.

Results

Changes to the Tax Code of the Russian Federation, which entered into force on January 1, 2020, show that UTII will still be abolished from 2021. Amendments to tax laws are already working in conjunction with innovations in other areas of legislation, in particular, on mandatory labeling of goods.

The result of the changes can already be observed, for example, in pharmacies - it seems that UTII is still in effect in 2020, but its practical abolition for pharmacies has taken place in 2020.

With the introduction of retail restrictions and new categories of goods subject to labeling, UTII for most areas of retail trade will become a thing of the past before 2021.

Read about other tax law changes for 2020.
You can find more complete information on the topic in ConsultantPlus. Full and free access to the system for 2 days.

Latest news about the cancellation of UTII and Patent

What is UTII

Calculate UTII in Kontur.Accounting - a convenient online service for calculating salaries and sending reports to the Federal Tax Service, Pension Fund and Social Insurance Fund.
Get free access for 5 days UTII or imputation is a special tax regime along with the simplified tax system and a patent. Imputation is regulated by Chapter 26.3 of the Tax Code of the Russian Federation. The peculiarity of UTII is that when calculating the tax amount, tax authorities are not interested in your income and expenses. You are charged with the potential amount of income that your business can generate, and UTII is already withheld from it. The calculation formula looks like this:

UTII = DB * FP * K1 * K2 * 15% , where

BD—basic profitability of the physical indicator;
FP is a physical indicator, it can be the number of workers, the number of vehicles, seats, area, etc.;
K1 - deflator coefficient is set by the Ministry of Economic Development of the Russian Federation, in 2020 it is equal to 1.915;
K2 - adjustment coefficient established by municipalities for specific types of activities;
15% is the tax rate for UTII.

UTII can be used by legal entities and individual entrepreneurs engaged in certain types of activities - mainly the provision of services and retail trade. For a complete list, see Article 346.26 of the Tax Code of the Russian Federation. The decision to apply UTII will be left to the subject of the Russian Federation, so there may not be imputation in your territory.

To work with UTII, comply with the following conditions:

maximum number of employees - 100 people;
no more than 25% of the authorized capital is formed by a legal entity;
area up to 150 sq.m. inclusive for catering and retail trade;
up to 500 sq.m. restriction for hotels on one site;
when providing transport services - no more than 20 units of transport.

If you do not comply with these restrictions, you will be thrown off the charge.

Why is UTII being cancelled?

Cancellation (non-renewal) of imputation is one of the steps to combat the concealment of income and tax evasion. Since tax is calculated on imputed income, tax authorities lose control over the actual income of companies and individual entrepreneurs. Officials believe that the budget is losing money.

For example, an entrepreneur decided to open a retail store. The tax office, based on its data, set the store’s annual revenue at 1,000,000 rubles, taking into account the area, basic profitability and coefficients. That is, the tax payable will be 150,000 rubles. During the year, the store earned 5,000,000 rubles. But the entrepreneur will still pay tax in the amount of 150,000 rubles. And under the simplified tax system, the 6% individual entrepreneur would have paid the entire 300,000 rubles.

What will replace UTII

No new tax regime is expected. The special regimes that remain are patent and simplified tax system. These modes are not a 100% replacement for imputation; if you have not worked with them before, prepare for the following points.

On the simplified 6% basis, there are strict requirements for accounting for all income. You will pay tax on them at a rate of 6%. For the simplified tax system of 15%, expenses are additionally kept track of. The difference between income and expenses is taxed at a rate of 15%. At the same time, all expenses cannot be attributed to expenses - they must be economically justified and aimed at conducting business. That is, the cost of purchasing a car cannot be attributed to the director as expenses. After UTII you will need an accountant or a special accounting program.

A patent or PSN is more similar to UTII than to the simplified tax system. However, only individual entrepreneurs can buy a patent. For legal entities, only a simplification remains. A patent is also acquired for a specific type of activity, but this circle is much narrower than that of UTII. The requirements for PSN are much stricter:

no more than 15 employees;
for retail stores no more than 50 sq.m. squares;
annual income no more than 60 million rubles.

Before canceling UTII, calculate the tax burden for different special regimes in advance. So that new payments to the budget do not come as a surprise, and in 2021 you can choose a profitable regime.

What is the latest news about UTII and Patent

The abolition of UTII is not a new idea. Cancellation was first discussed in 2012, with cancellation planned for 2014, but this did not happen. The cancellation was then postponed to 2020. Whether imputation will continue to exist in 2021, by and large, also remains in question.

On July 10, 2020, the State Duma adopted bill No. 720839-7 in the first reading, according to which UTII and patents will be abolished for sellers of certain goods with mandatory labeling. These include shoes and most clothing. UTII is also taken from pharmacies. The bill has not yet passed all stages of approval; you can monitor the progress of its consideration on the State Duma website. Why cancel UTII in general and at the same time in part is still unknown. But there have been no official statements about the cancellation of the Patent from the legislator, individual entrepreneurs can sleep peacefully.

To automate tax and accounting, we recommend the Kontur.Accounting web service. Our program works with special regimes and their combination; canceling UTII is not a problem for it. We give all newbies a free 5-day trial period.

Try free for 5 days

simplified tax system (income)

Now let's take a look at the simplified tax system (income). In this taxation system, tax is paid on the income actually received without taking into account expenses. The standard rate is 6%, but regions can set it lower (the current rate for your region can be found in your tax office or by calling the Federal Tax Service hotline). The declaration under the simplified tax system is submitted once a year, and the tax is paid every quarter. Insurance premiums can be deducted from the simplified tax system in the same way as UTII, i.e. Individual entrepreneurs without employees can reduce their simplified tax system even to zero. Let's calculate how much an entrepreneur without employees needs to earn in order for his tax to be greater than zero.

In 2020, fixed insurance premiums for individual entrepreneurs will be in the amount of 40,874 rubles. Those. an entrepreneur without employees can reduce the simplified tax system of 6% by 40,874 rubles. Let's remember the school curriculum and solve a simple equation:

INCOME * 0.06 - 40874 = 0
INCOME * 0.06 = 40874
INCOME = 40874 / 0.06
INCOME = 681,233

It turns out that if your annual income is 680 thousand rubles, then you do not pay the simplified tax system at all. This is approximately 56.5 thousand per month. Below is a table with a more detailed comparison.

Situation at the end of 2020

As of December 2020, organizations and individual entrepreneurs can apply imputation, provided that this special regime has been introduced in their region by local authorities in relation to the types of business activities in which they are engaged (Article 346.26, paragraph 1 of Article 346.28 of the Tax Code of the Russian Federation). And also subject to their registration as a UTII payer. The abolition of imputed tax is fully provided for by the current legislation of the Russian Federation only from January 1, 2021 (Clause 8 of Article 5 of Law No. 97-FZ dated June 29, 2012).