About Christmas markets
Trade in Christmas trees in 2020 will begin three to four weeks before the New Year (note by Moneymaker Factory: as in 2014, the same will happen in 2020). The demand for spruce and pine trees lasts only a few days, but even in this short period of time you can make good money by reselling live trees. Naturally, this seasonal type of business does not go unnoticed by city administrations, so you will need to work hard to occupy a profitable place. Entrepreneurs prepare documents for trade in Christmas trees in advance, look for forestries and prepare to purchase trees. Here, as with flowers on March 8, it is important not to miss the moment. Further material will be presented using the example of the city of Sochi, but similar requirements are presented in all regions (although it is worth noting that there may be regional differences).
Documentation
How to open a Christmas tree market is a question that needs to be approached in the summer. In order for an entrepreneur to apply for the registration of a Christmas tree bazaar, he must have an open type of activity from the all-Russian OKVED classifier under number 52.63 - Other retail trade outside stores.
Important: Previously there was a special code for trading spruce trees, but it has not been used for several years.
The city administration approves in advance the list of places for organizing the Christmas tree bazaar. These are often small areas with busy pedestrian or vehicular traffic. They rarely cover residential areas, although for some it would be convenient to buy pine right next to the house. Information about already approved places can be found on the city administration website in the “Resolutions and Documents” section.
An entrepreneur can independently offer a place to host a Christmas tree market. But it is worth understanding that, firstly, the review of the application will take a month. Secondly, it is not a fact that the application will be approved. To propose your own option for a location for a Christmas tree bazaar, you should contact the city retail department and the Department of Architecture and Urban Planning. The former will help you complete the application, and the latter will make a direct decision. If the territory claimed by the entrepreneur is owned by someone else, then the permit will not be issued.
If two or more entrepreneurs apply for one place, then the place is rented out through an auction. Usually the cost is estimated based on the area. For a small Christmas tree market, 20 square meters is enough. m, for a busy place you will need an area of about 60 sq. m.
OKVED 2020 – selecting activity codes
In 2020, only one edition of the classifier is in force - OKVED-2 (another name is OKVED-2014 or OK 029-2014 (NACE rev. 2)). Classifiers of the OKVED-1 editions (another name is OKVED-2001 or OK 029-2001 (NACE Rev. 1)) and OKVED-2007 or OK 029-2007 (NACE Rev. 1.1) have become invalid since January 1, 2020.
The entire “reinforced concrete” logic of tax officials is based on their constant desire to not recognize the taxpayer’s right to a tax benefit or to reduce the tax base. Everything comes into play here, including the refusal to accept expenses for transactions with counterparties if they do not indicate the type of activity for which the business transaction took place.
OKVED: 47. Retail trade, except trade in motor vehicles and motorcycles
m.
For example, in September of this year, the Moscow Department of Competition Policy announced 51 auctions for the placement of Christmas tree markets in various administrative districts of Moscow. The initial cost of renting one plot of 12 square meters. m. is 48 thousand rubles. For a plot of 60 sq. m. the starting price is 300 thousand rubles. Organizations receive the right to use the site for 5 years, but only for 11 days a year: from December 20 to 31.
After receiving permission, you must switch to UTII, if permitted by the local administration. In this case, the tax will be determined based on the area of the Christmas tree market and the number of days it is open. In January of next year, you will need to remember to submit an application for removal from this regime, and report to the tax office by the 20th.
If you can’t use UTII, you will have to use a simplified taxation system and equip your Christmas tree market with a cash register.
Some municipal administrations offer an alternative way to solve the problem. When requesting a trade permit, an entrepreneur pays a certain fee; in return, the administration issues a permit to use a certain plot of land for trade. This includes tent trading in squares on New Year's Eve, Christmas tree markets, etc. The municipality no longer imposes any requirements on the entrepreneur. Before submitting an application, it is worth checking what options your administration can offer.
After obtaining permission, it is necessary to begin organizing the Christmas tree market.
Rules for trade in non-food products in 2020
3. Correct design of the price tag. The regulation on this issue is Government Decree No. 55 of January 19, 1998 “On approval of the rules of sale...”. To Resolution No. 55, Government Resolution No. 1406 of December 23, 2015 was subsequently issued, which introduced certain changes to it (in particular, we will talk about clause 19).
Part 4 discusses the nuances associated with the sale of commission objects. In 2020, they must go on sale no later than the day following the day of receipt (clause 24). In case of delay, the commission agent pays the principal a penalty for each day in the amount of 3% of the remuneration amount. The relationship between the commission agent and the consumer is regulated by the PPP law.
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What must be at the Christmas tree market
An entrepreneur selling Christmas trees must have: a sign, a book of complaints and suggestions, a measuring ruler, a fire extinguisher and invoices for the presented spruce and pine trees. Some city administrations offer options for decorating all Christmas tree markets in the same style. This increases customer confidence in official retail outlets.
Main document: invoices for goods!
Let us give an example of a resolution on the requirements for Christmas tree markets in the city of Sochi.
There is another way to organize a Christmas tree market. In this case, trading will be carried out from a car. Usually this is a truck with several spruce and pine trees displayed next to it. In this case, there are no requirements for fencing and the presence of a sign, but there remains the need to register the parking place and trade with the city administration. If a truck drives along the city streets offering to buy spruce without leaving the house, this is almost always an illegal business.
Fines for illegal trade in Christmas trees
The situation here is twofold. On the one hand, entrepreneurs are required to submit an official application with a request to allocate a site for organizing a Christmas tree market, register with the tax office and give away a percentage of their profits. On the other hand, the administrative fine for illegal business ranges from 500 to 2000 rubles. All this contributes to the emergence of illegal Christmas tree markets, where enterprising citizens prefer to negotiate on the spot with inspectors and continue to work quietly.
Large fines are provided for illegal cutting of spruce and pine trees. This is already the Criminal Code, and the amount is up to 500 thousand rubles. The violator may also face correctional labor for up to two years. But, as often happens, violators simply do not fall into the hands of justice.
To combat illegal logging, forest departments use a special mixture of environmentally friendly paint. They coat the paws of pine trees with it, giving them an unsaleable appearance. The paint fades a few weeks after the New Year, but the trees are safe during the period of mass cutting.
Interesting fact: the New Year tree was not always available to residents of Russia. After the October Revolution, a whole propaganda effort was carried out against the New Year's forest beauty. Along with the abolition of Christmas, the Christmas tree also began to be called a “priestly custom,” and on New Year’s Eve special detachments walked the streets, looking into the windows. We were looking for those who have a Christmas tree in their house. Therefore, for several years it was secretly customary to cover the windows with blankets so that a stranger could not see what was happening in the house. Stalin put an end to the banishment of the Christmas tree when, in December 1935, it was announced that the Christmas tree was in vain denounced as a bourgeois undertaking. Immediately after this, over the course of several days, fir trees were brought in en masse and celebrations were held. For several more years, special collections of articles devoted to the proper decoration of the New Year tree were published.
Purchasing Christmas trees
The main question that faces an entrepreneur is: where to buy Christmas trees for sale. You need to look for the nearest forestry department and conclude an agreement with it. An officially registered entrepreneur will need a TIN, OGRNIP, passport and stamp. For an LLC, the list of documents also includes a power of attorney for the recipient and a copy of the charter. Along with the purchased trees, the forestry department will provide a delivery note, invoices, sales receipt and quarantine certificate. Without these documents, trade in Christmas trees will be illegal. Some forestries provide packaging services for spruce and pine trees, as well as delivery to a transport company. A tree packed in a protective net takes up less space in the car and allows you to load more trees into one car.
The minimum order usually starts from 100 pieces, and delivery times are negotiated individually.
The cost of Christmas trees varies depending on which country the trees are purchased from.
In Russia, prices for pine trees are at the level of 100-150 rubles per piece. Spruces are a little more expensive.
Trees grown abroad are much more expensive. Taking into account the euro exchange rate in 2020, their purchase may turn out to be unprofitable for further resale, but they could become a good gift. For example, for an ordinary spruce a little more than a meter high, grown in Denmark, you will have to pay from 35 euros. Canadian spruce, only 20-40 cm high, costs from 5 to 30 euros per piece, and mountain pine from Germany, 15 cm high, costs 8 euros. All trees are supplied in a special decorative container and can grow in it for quite a long time. The minimum order value is usually several hundred euros.
Additionally
Some entrepreneurs, in parallel with the sale of Christmas trees, organize the sale of stands for them, Christmas tree decorations, glowing garlands and other related products. All this increases the average sales receipt several times.
In addition, the price of Christmas trees fluctuates according to a certain rule. The closer the New Year gets, the price gradually increases. But on December 31, everything changes. The closer the evening gets, the prices drop. What is important for an entrepreneur is not the fact of earning money, but the sale of all products without loss to himself.
About the work of Christmas tree markets, the necessary documents and the possible consequences of illegal trade - watch the video
All-Russian Classifier of Types of Economic Activities (OKVED 2) OK 029-2014 (NACE Red
Development and submission for adoption of changes to OKVED 2 is ensured by the Ministry of Economic Development of Russia in the manner established by Standardization Rules PR 50.1.024-2005 “Basic provisions and procedure for carrying out work on the development, maintenance and application of all-Russian classifiers.”
— according to Article 71 of the Constitution of the Russian Federation, it is determined that the Russian Federation has the right to issue money. Article 75 specifies that money issuance is carried out exclusively by the Central Bank of the Russian Federation, and its main function is specified
08 Feb 2020 juristsib 349
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What to do with unsold Christmas trees?
There is no clear system here yet. Some entrepreneurs give free Christmas trees to churches and temples. There they are used to celebrate Christmas. In big cities, sometimes zoos take away unsold Christmas trees, where they are used as animal feed. In Europe, after New Year's celebrations, trees are used to make fertilizer. The method of creating cosmetics based on spruce needles is considered innovative.
Despite this, thousands of unsold trees remain on the streets on December 31, and a few days after the holiday, hundreds of thousands of forest beauties are sent to the nearest solid waste landfill.
Obtaining permission to trade live Christmas trees
To start such a business, it is necessary to prepare documents - obtaining permission to sell Christmas trees (organizing a Christmas tree market). The departments of the consumer market and services of the city administration are responsible for issuing permits. OKEVD code 52.48.32: retail trade in flowers and other plants, seeds and fertilizers. After receiving the permit, you will be given a permit to trade Christmas trees.
You submit an application to the consumer market and services department of the city administration with a request to issue a permit and allocate space for a Christmas tree market. Usually the number of such bazaars and their location are set in advance, but you can also offer your own place.
Choosing a good location is one of the main points that guarantees a high level of sales and stable profits. Most likely, convenient places have already been occupied by those who have been working in the market for such services for several years, so you are unlikely to get them. On the other hand, “convenient” usually means points through which a large mass of potential buyers pass: the city center, places near large shopping centers and large markets.
In this case, residential areas are often not used, although they are quite promising in terms of purchases: Christmas trees are very inconvenient to carry and therefore many would purchase them close to home. It is best if, by the time you submit your application, you have already chosen the place where you want to conduct the sale; in this case, indicate the address where the outlet will be organized.
Current OKVED codes for 2020
When studying and entering OKVED digital codes into the registration application, many novice entrepreneurs unknowingly make a number of mistakes. In order to help avoid them, we’ll talk in detail about what to rely on and in what order to act when choosing codes from the all-Russian classifier.
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What is OKVED
- When choosing OKVED codes, future businessmen, in particular the founders of an LLC, should remember that there must be a 100% coincidence of the types of activities specified in the application and those indicated in the charter, otherwise tax officials can easily refuse registration. But even if the initial stage of registration with the tax service is completed successfully, problems may well arise when opening a bank account, since bank employees check documents no less carefully;
- The law does not in any way limit the number of OKVED codes included in the application for registration of an enterprise. Therefore, businessmen often enter not only those specific types of activities that they actually plan to engage in, but also those that they envision only in theory. The accumulation of codes from the classifier included in title documents entails a number of dangers. Let's give just one fairly common example: some types of activities may be subject to a special UTII tax regime, and in such cases, tax authorities may require an entrepreneur or organization to submit separate reports on them. Thus, experts advise holding back and not adding more than two dozen OKVED codes to the constituent documents and, when choosing them, carefully study the features of each type of activity, including from the point of view of tax legislation;
- It is extremely important to correctly understand and interpret the names of the types of activities listed in OKVED. Otherwise, an incident may arise in which the most necessary and relevant type of activity will not be included in the state register for a given organization or individual entrepreneur. The consequences of such an incident are unpleasant. Firstly, if necessary, it will be impossible to obtain a license, and secondly, it will be impossible to switch to UTII, which operates for strictly defined types of activities at the local and municipal level.
universal assortment of goods - Wholesale trade of grains, seeds and feed for farm animals - Wholesale trade of flowers and other plants - Wholesale trade of live animals - Wholesale trade of hides and skins - Wholesale trade of unprocessed tobacco - Wholesale trade of fruits, vegetables and potatoes - Wholesale trade of meat, poultry meat, products and canned food from meat and poultry meat - Wholesale trade of dairy products, eggs, edible oils and fats - Wholesale trade of alcoholic and other beverages - Wholesale trade of tobacco products - Wholesale trade of sugar and sugary confectionery products, including chocolate - Wholesale trade of coffee , tea, cocoa and spices - Wholesale of other food products - Non-specialized
For trade in building materials, OKVED has united operations for the sale of hardware, varnishes and paints, bricks, glass, various equipment, and lumber. Code 47.53 – carpet products. Code 47.54 – household electrical goods.
Preparing a Christmas tree trading site
Tree cutting won't begin until December, leaving plenty of time to prepare your trading location.
Quite high requirements are imposed on the street trade of Christmas trees, which are discussed by special orders of the trade department of the city administration. Typically, this should be a fenced area with a mandatory sign, a guest book and a fire extinguisher. It should be taken into account that such retail outlets are constantly inspected by the State Forestry Agency, the State Fire Inspectorate and other organizations, so the seller must have all the necessary documents on hand.
It is necessary to first resolve issues related to the storage of goods. When choosing a trading location, you should pay attention to the available ready-made sites with permanent fencing or near a similar area, for example, a guarded parking lot, in a market area closed during non-working hours, etc. If this is not possible, then you need to agree in advance on the overnight rental of storage space.
It is quite possible to trade without organizing a Christmas tree market - directly from your car. This allows you to avoid the cost of renting space and its decoration. In this case, it will now be necessary to resolve the issue of storage and calculate the costs of renting vehicles. If you have a truck at your disposal, then this option will be the best solution to the problem, and besides, the Christmas trees will be in the back at all times.
Another trading option that can bring more profit is outbound trading from cars. The machine sells first in one place, then, after demand decreases, it moves to another yard. But it should be taken into account that you will receive a permit for street trading in a specific place, so such sale of Christmas trees will be considered a violation, for which a fine may be imposed, the amount of which is established by the local authorities.
Purchasing Christmas trees
Documents you must obtain from the seller:
- tax invoice;
- waybill.
- The invoices will be checked by employees of the State Forestry Committee, so these documents, as well as the trade permit, must be carried with you both during transportation and at the trading place.
Forestry departments sell hundreds of Christmas trees wholesale. The cost of a linear meter can start from 1 dollar to 100-130 rubles per meter. The price depends on several factors: the type of plant, its height, fluffiness and place of purchase. Depending on the geographical location, prices can vary quite significantly, but this does not affect the expected profit, since the selling price is based on the purchase price, regardless of the city in which it is carried out.
The price includes not only the product itself, but also services for cutting it and delivering it to the forestry enterprise. You can do this work yourself, but it’s hardly worth saving on it.
You can also get spruce branches from the forestry department; individual branches sell even faster than whole trees, and you can get it at a nominal price or even for free.
Organization of trade in Christmas trees and fir trees
The Christmas tree markets begin in mid-December. By this time, you will need to decide who will engage in direct trading. If you have several points, it is better to hire sellers on terms of payment as a percentage of the goods sold, usually this payment is 10% of the cost of the trees sold.
Regardless of how trading will be carried out (from a car or on a trading platform), it is advisable to decorate this place to attract buyers, connect music and garlands.
What is OKVED and why is it needed?
We are sure that every novice entrepreneur knows what OKVED is. But just in case, we remind you that the All-Russian Classifier of Types of Economic Activities (OKVED) is a document designed to classify and code types of economic activities and information about them.
Why are OKVED codes needed? Today, the use of a classifier allows solving many problems, including:
- Classification and coding of types of economic activity;
- Development of laws relating to state regulation of certain types of economic activities;
- Statistical observation of subjects of the national economy;
- Preparation of statistical information for comparisons at the international level, etc.
Note! In accordance with international practice, the All-Russian Classifier of Economic Activities does not take into account such classification criteria as ownership and legal form. That is, OKVED codes are suitable for both individual entrepreneurs and LLCs.
OKVED 2 code 47. Retail trade, except trade in motor vehicles and motorcycles
It would be nice if the seller is dressed in a Santa Claus costume. It would be good if, in addition to the trees themselves, you could offer crosses, and the trees would be packed in strong bags or at least tied with ribbons.
The price will have to be determined based on the purchase price and the prices of competitors. In the first week of trading, 50-70 percent of the prices paid to the leshoz can be added. If trade goes briskly, then it is quite possible to purchase a new batch and keep the price at the same level. Although a 100% markup is quite possible. The total price will be determined not so much by your desire as by the general prices in the city.
In the last days before the holiday, the price may rise by approximately 10 percent. But by the evening of December 31, the cost of unsold goods should decrease. So, after 19-00 you need to start lowering the price by about 10% per hour, at this time the seller should not be concerned about profit, but the desire not to be left with Christmas trees in his hands after the end of the year.
Peter Stolypin, 2012-11-04
Selling Christmas trees for the New Year is a business that people prepare for in the summer
This class includes: - resale (sale without conversion) of new and used goods for personal or household use, or use by shops, department stores, tents, postal service enterprises, persons delivering goods on a door-to-door basis, merchants, consumer cooperatives, etc. Retail trade is classified primarily by type of trading enterprise (retail trade in general assortment stores - groupings from 47.1 to 47.7, retail trade outside stores - groupings from 47.8 to 47.9). Retail trade in general merchandise stores includes: retail sales of used goods (group 47.79). For retail sales in department stores, a further distinction is made between retail sales in specialized stores (groups 47.2 to 47.7) and retail sales in non-specialized stores (group 47.1). The above-mentioned groups are further subdivided according to the range of products sold. Sales of goods not through general stores are classified according to forms of trade, such as retail sales in stalls and markets (group 47.8) and other retail sales not through general stores, such as mail order, door-to-door, vending machines, etc. d. (grouping 47.9). The range of goods in this group is limited to goods usually referred to as consumer goods or retail goods. Therefore, goods that are not usually sold in retail trade, such as cereal grains, ores, industrial equipment, etc. not included in this class This class also includes: - retail sale of goods such as personal computers, office supplies, paint or wood, although these products may not be suitable for personal or household purposes. Processing of goods traditionally used in trade does not affect the basic characteristics of goods and may include, for example, only their sorting, separating, mixing and packaging. This group also includes: - retail trade through commission sales agents and the activities of retail auction houses
Retail Trade Based on Okved Orders 2020
After all, constantly changing, deleting and adding codes to your registration documents is a very tedious task. By the way, this section also applies to the choice of sales locations. As in the case of narrowly targeted goods, any products can be sold both in specialized retail outlets and in non-specialized ones. After all, it is this factor that directly influences the choice of codes that control authorities will operate.
Selecting an OKVED code for retail trade in 2020
The fact is that p. This group includes: - wholesale trade in office machines and equipment, except for computers and computer peripheral equipment. This group does not include: - wholesale trade in computers and peripheral equipment for them, see. This group includes: - wholesale trade in industrial chemicals such as aniline, printing ink, essential oils, industrial gases, chemical adhesives, dyes, synthetic rosin, methanol, paraffin, fragrances and flavorings, soda, industrial salt, acid and sulfur, starch products, etc.
— retail trade, by ordering goods by mail or via the Internet information and communication network, i.e. such trading activity when the buyer makes a choice of goods based on advertisements, catalogues, information on Internet pages, samples or any other types of advertising and places his order by mail, telephone or via the Internet information and communication network (usually using special means, provided on the website)
Choose OKVED from the OK029-2020 classifier (NACE Rev. 2). It was approved by the Order of Rosstandart dated January 31, 2020. No. 14-st. Trading operations are listed in section G. But an online store may need codes from other sections.
How to indicate OKVED in the Unified State Register of Legal Entities
A company can indicate the OEVED in different ways. The first way is to specify a four-character code, that is, a grouping. In this case, the organization will be able to carry out all types of activities included in the group. For example, in the Unified State Register of Legal Entities the company has OKVED 47.91. This means that it can carry out activities provided for by the codes of four subgroups:
The additional OKVED code directly depends on the specifics of your activity. For example, if your store will sell children's toys, then you should choose code 47.19 - Other retail trade in non-specialized stores.
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