Business plan for a car wash with calculations on how to open it in 2020

What is OKVED

The main statistical code is assigned to a car wash immediately after registration as a business entity.
It encodes the main specifics and nuances of the activity, which the owner determines independently. The question of which OKVED car wash is meant to determine the digital values corresponding to the “All-Russian Classifier of Types of Economic Activities” (this document is legally correctly called OKVED). In the new edition of the classifier, the encoding used in Russia and in Europe is the same in the main information. The first (directly defining the type of activity) four digits are identical.

Thus, car washes belong to OKVED 45.20. "Maintenance and repair of motor vehicles." As you can see, all car services, diagnostic centers, tire stations and a number of other facilities providing various auto repair and maintenance services will receive the same figures.

In order to “isolate” a certain type of activity from the general direction, subclasses and groups, subgroups and types within each of them were invented. So OKVED 45.20.3. already refers to “Vehicle washing, polishing and similar services.” It is based on these five figures that tax specialists and statisticians will understand that they are dealing with a car wash.

Marketing business plan for opening a car wash

A business plan for opening a car wash also includes a marketing plan for the business. And the best advertising for this type of business is a good choice of company location. Consider the following aspects:

busy place;
bright, memorable name;
colorful signs located along the road and visible from afar;
billboards in the area where the car wash opens;
printed advertising in the location area, car business cards in parking lots, service stations, gas stations, auto parts stores;
carrying out promotions (for example, providing a discount on interior cleaning services when ordering a full wash).

Due to the high level of competition, advertising costs will be quite high, especially at the initial stage. And the main direction is print and outdoor advertising. Advertising on the Internet is, of course, possible, but in the case of a car wash it will demonstrate a minimal level of effectiveness. At the initial stage, you may not even open a website or page on social networks for a car wash - this will not bring you much growth, especially if you are opening a business for the middle segment.

Procedure for selecting KVED

Even if a contactless car wash (or any other variety) represents several additional activities, only one can be selected as the main one. After finding the code in the classifier directory (in one of 17 sections, designated by letters of the Latin alphabet, in our case - G), a subsection is found (we have -45) and further clarifications (45.20. and 45.320.3).

Checking the correctness of the code and its registration is carried out at the stage of registering a car wash by fiscal and statistical services.

At the same time, in the future (when expanding the types of activities or changing them), the code can be changed - by updating the Charter or other constituent documents and notifying the relevant authorities.

In everyday activities, OKVED codes may be required for licensing, filing applications for participation in tenders, customs clearance, various types of inspections and, most importantly, when generating tax deductions.

The universality of OKVED to international standards is inherent not only in Russia, but also in a number of other countries. So, it’s very easy to find out what the KVED of a car wash (that’s what the national classifier sounds like) is in Ukraine: these will be the same “numbers”: 45.20.3.

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Purpose of OKVED

As the official bodies note, the main purpose of OKVED is the formation of national (and on its basis - world) statistics:

determining the capacity of the business line and its attractiveness;
collecting information for various types of analytics;
unification of data in registers;
formation of effective tax instruments.

The last function is most important for businessmen. A correctly selected OKVED allows you to simplify or complicate the taxation process (due to certain features, benefits or additional licensing fees).

UTII tax for a car wash: how to calculate, amount

The car wash business in our country has been developing at a significant pace in recent years. Such trends are associated with an increase in the number of cars on Russian roads, as well as the ability to generate income all year round. With a rational and correct approach, such a business can very quickly pay for itself and begin to generate income. Issues of rational organization of professional activities in the field of car wash services are closely related to the topic of taxation of such activities. The level of income and profitability of the company depends on the correctly chosen system.

As a rule, the main system that is used in this area is the unified tax on imputed income (UTII). For such a business, there are a number of features in calculating amounts, which will be discussed in this article.

Let us recall that this type of tax involves payment of a tax that does not depend on the amount of income received by the car wash, but is calculated on the basis of the amount of imputed income. Imputed income is established by law in the Tax Code of the Russian Federation for each type of activity separately.

Example No. 3. We use individual entrepreneur deductions for ourselves

Until 2020, there was no possibility of reducing the tax on the amount of payments made by individual entrepreneurs “for themselves”. That is, the entire amount of tax that was assessed had to be paid.

From January 1, 2020, individual entrepreneurs’ contributions for themselves can also reduce the amount of UTII. This right is enshrined in the law in paragraph 1 of Art. 2 346.32 Tax Code of the Russian Federation.

According to tax authorities, an individual entrepreneur has every right to reduce the amount of tax on UTII by the amount of insurance payments for himself.

Clause 1.art.2 346.32 Tax Code of the Russian Federation

Let's look at a specific example.

Initial data for the example:

organization – individual entrepreneur A.A. Morozov (without employees). Although it is difficult to imagine a car wash business being run without employees, we are dealing with a hypothetical example for the purposes of this article;
type of activity – car wash business;
basic income – 12,000 rubles;
K1 =1.868%;
K2 = 1;
physical indicator – 1 person;
tax rate – 15%.

The initial tax calculation per month leaves:

12000 * 1 * 1.868 * 1 * 0.15 = 3362 rub.

The tax calculation for the quarter will be:

3362 * 3 = 10086 rubles.

We will determine the amount of payments to individual entrepreneurs for themselves in 2020.

Situation 1. If individual entrepreneur A.A. Morozov received an income of up to 300,000 rubles per year:

Pension Fund – 26,545 rubles;
Compulsory medical insurance – 5840 rubles;
FSS – 3302.17 rubles;
total for mandatory contributions: 32,385 rubles;
total for mandatory and voluntary contributions: 35,687.17 rubles.

Situation 2. If individual entrepreneur A.A. Morozov received an income above 300,000 rubles per year. In our situation, his annual income will be 550,000 rubles:

Pension Fund = 26545 + (550000-300000) * 0.01 = 29045 rubles;
Compulsory medical insurance – 5840 rubles;
FSS – 3302.17 rubles
total amount for compulsory insurance: 34885 rubles
total amount for compulsory and voluntary insurance: 38187.17 rubles

The amount of calculated tax can be reduced by these received values.

Calculation of UTII for individual entrepreneur A.A. Morozov.

Situation 1. Income is less than 300,000 rubles.

The amount of payments an individual entrepreneur makes for himself per quarter will be:

with compulsory insurance: 32385/4 = 8096 rubles;
with compulsory and voluntary insurance: 35687.17/4 = 8922 rubles.

The tax amount for the quarter will be:

with compulsory insurance: 10086 – 8096 = 1990 rubles;
with compulsory and voluntary insurance: 10086 – 8922 = 1164 rubles.

Situation 2. The amount of income received for the year is 550,000 rubles.

The amount of payments an individual entrepreneur makes for himself per quarter will be:

with compulsory insurance: 34885/4 = 8721 rubles;
with compulsory and voluntary insurance: 38187, 17/4 = 9547 rubles.

The tax amount for the quarter will be:

with compulsory insurance: 10086 – 8721= 1365 rubles;
with compulsory and voluntary insurance: 10086 – 9547 = 539 rubles.

Final table of payments for individual entrepreneur Morozov A.A. for different options is presented in the table below.

Income less than 300,000 rubles per year		Income amount 550,000 rubles per year
compulsory insurance	compulsory + voluntary insurance	compulsory insurance	compulsory + voluntary insurance
1990	1164	1365	539

Thus, we examined various options for paying UTII for a car wash business.

Answers to frequently asked questions

Question No. 1: What to do in the situation of a self-service car wash?

Let's consider such an interesting option for organizing a car wash business as a self-service car wash.

To apply UTII in this area, the following points must be met:

the type of activity code in the Unified State Register of Individual Entrepreneurs or the Unified State Register of Legal Entities must be indicated: 45.20.3 (or 45.20). This should be the main code;
in the area or area where the entrepreneur opens a car wash, UTII must be allowed for use;
when opening and starting its activities, the organization must submit an application to the tax office using the UTII-1 form, which indicates a request to register as a UTII payer in this area;
the company meets all the criteria for the possibility of applying UTII.

The services of self-service car washes, in accordance with the letter of the Ministry of Finance dated March 27, 2017 No. 03-11-11/17687, are classified as household services to the population. In this case, to calculate UTII, the number of employees of the company and the individual entrepreneur itself is used as a physical indicator. The number is taken as average. In this case, employees include those who work part-time and under civil contracts.

But there are frequent situations when such a business has no employees at all. Only the individual entrepreneur himself (aka director). The physical indicator is then equal to 1.

In this situation, the tax office may have questions about what will be the reason for refusing to register as a UTII payer. The same applies to the situation when the number of employees turned out to be very small. This is due to the fact that tax authorities can classify such activities as an option: the provision of services for leasing equipment and space. And in relation to this type of activity, UTII does not apply. If such a refusal nevertheless occurs, then the solution for the organization is to appeal to higher authorities or to the court.

Where to start opening a self-service car wash

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To implement such a business idea, you will need start-up capital of several million rubles.

At the initial stage, you should register an individual entrepreneur and obtain the appropriate permits.

Part of the start-up capital will be used to rent or purchase the space where the car wash will be located.

If you have the financial means, a businessman can purchase several sets, in which case you can get a good discount.

After the car wash is built, the entrepreneur will need to ensure a constant flow of customers.

To do this, you need to use any available means to promote your business.

You can distribute advertising brochures in local auto shops, service stations, and parking lots.

The opportunity to save significantly on car washing will attract many people whose family budget is limited.

What activity code to register?

To be able to apply a special regime in the form of UTII or PSN, you need to register the correct activity code.

The taxation system in the form of UTII can be used by individual entrepreneurs and organizations, in particular, in relation to business activities in the provision of household services (clause 1, clause 2, article 346.26 of the Tax Code of the Russian Federation).

The list of types of business activities for which an individual entrepreneur can apply PSN is given in paragraph 2 of Art. 346.43 Tax Code of the Russian Federation. In particular, there is the type of activity “Maintenance and repair of motor vehicles and motor vehicles, machinery and equipment” (subclause 9, clause 2, article 346.43 of the Tax Code of the Russian Federation);

In addition, the PSN is put into effect on the territory of a specific constituent entity of the Russian Federation by the relevant law of that constituent entity of the Russian Federation (clause 1 of Article 346.43 of the Tax Code of the Russian Federation). Moreover, constituent entities of the Russian Federation have the right in their laws to establish an additional list of types of business activities related to household services, in respect of which the PSN is applied in a given constituent entity of the Russian Federation (subclause 2, clause 8, article 346.43 of the Tax Code of the Russian Federation).

For the purposes of applying UTII and PSN, the following services are considered household:

which are provided to individuals for a fee;
which are classified as household services by current legislation (Order of the Government of the Russian Federation dated November 24, 2016 No. 2496-r, OKVED2, OKDP2).

In particular, the order includes the following as household services:

group of activities “Maintenance and repair of motor vehicles” with code 45.20 from OKVED2. This OKVED2 grouping includes, inter alia, “washing and polishing”;
the subgroup of activities included in it is “Vehicle washing, polishing and provision of similar services” with code 45.20.3 from OKVED2;
type of product (work, with code 45.20.30 from OKPD2.

Thus, if you want to apply UTII or PSN for your car wash, first you need to make sure that the OKVED2 code 45.20 or 45.20.3 is available in the Unified State Register of Legal Entities or Unified State Register of Individual Entrepreneurs. The Ministry of Finance of Russia, in its letter dated March 27, 2017 No. 03-11-11/17687, also associated car wash services using self-service equipment with this code and indicated the right to apply UTII or PSN in relation to these services.

Car wash staff

The business plan of any car wash necessarily includes calculation of wage costs. Therefore, you need to decide on the number of personnel in advance. The final value will be affected by:

type of car wash;
number of service posts;
work schedule (1 or 2 shifts will be provided).

In any case (except for fully automatic washing), washers will be required. There should be about 2 – 8 people. Experience is not necessary - you can teach workers how to quickly and carefully wash cars yourself. It is better to determine the salary level for them in one of the following ways:

hourly;
piecework;
piecework-bonus.

In addition to washers, you need to hire a cashier who can also serve as an accountant. The entrepreneur himself can maintain reports on the simplified tax system, especially since opening an account in many banks requires the presence of built-in accounting in your personal Internet banking account.

Car wash workers must undergo periodic medical examinations. These are the requirements of the SES. They are associated with unfavorable working conditions, as a result of which the health of employees may deteriorate.

Application of UTII for car wash activities

To apply UTII to a self-service car wash, the following conditions must be simultaneously met:

In the information about your organization in the Unified State Register of Legal Entities or in the information about individual entrepreneurs in the Unified State Register of Individual Entrepreneurs, code 45.20.3 (or 45.20) is indicated as the code of the main or additional type of activity.
In the area where you have or are planning a car wash, UTII for household services was introduced by a regulatory legal act of the local representative government body.
Your organization (IP), within five days from the date of application of the UTII taxation system, submitted an application to register the organization (individual entrepreneur) as a single tax payer in the UTII-1 (UTII-2) form approved by the Order of the Federal Tax Service of Russia dated December 11. 2012 No. ММВ-7-6/ [email protected] , and received from the tax office a notification in form No. 1-3-Accounting (2-3-Accounting for individual entrepreneurs) about registration. The date of registration as a UTII payer is the date of commencement of application of the UTII taxation system specified in the application (Article 346.28 of the Tax Code of the Russian Federation).
Your organization (IP) meets the criteria for a UTII payer established by clauses 2.1, 2.2 of Art. 346.26 Tax Code of the Russian Federation.

For household services (to which the Ministry of Finance in letter dated March 27, 2017 No. 03-11-11/17687 included the services of self-service car washes), the physical indicator is “the number of employees, including individual entrepreneurs” (clause 3 of Article 346.29 of the Tax Code of the Russian Federation). This quantity is determined as the average number of employees in activities subject to UTII for each calendar month of the tax period. Moreover, it is necessary to take into account all employees, including part-time workers, contract workers and other civil contracts (Article 346.27 of the Tax Code of the Russian Federation).

If there are no hired workers at all in the operation of a self-service car wash, then the physical indicator for paying tax is equal to one (this is the individual entrepreneur himself or the director of the organization).

There is a risk that the tax inspectorate will not register the organization (IP) as a UTII taxpayer and will not issue a notification in response to the application for registration. And this risk increases in the case of too few employees related to the self-service car wash operation. After all, just recently, tax authorities interpreted the activities of self-service car washes not as the provision of vehicle washing services, for which UTII may be applied, but as the provision of services for the rental of special equipment and working space for washing cars, for which UTII cannot be applied ( Letter of the Federal Tax Service of Russia dated October 31, 2014 No. GD-4-3 / [email protected] ).

In case of refusal to register as a UTII payer, we recommend that you write a letter to your tax office, referring to the conclusions about the legality of using UTII by self-service car washes in the letter of the Ministry of Finance of Russia dated March 27, 2017 No. 03-11-11/17687. Upon receipt of a written reasoned refusal, it can be appealed to a higher tax authority or in court.

Application of PSN

In order for an individual entrepreneur to apply the patent tax system (PTS) in relation to a self-service car wash, the following conditions must be simultaneously met:

Information about individual entrepreneurs in the Unified State Register of Individual Entrepreneurs indicates the OKVED2 code 45.20 or 45.20.3 as the code for the main or additional type of activity.
On the territory of the subject of the Russian Federation where you have or are planning a car wash, PSN was introduced by the law of the subject of the Russian Federation (clause 1 of Article 346.43 of the Tax Code of the Russian Federation).
The individual entrepreneur received the corresponding patent for the use of PSN after filing his application for a patent (Article 346.28 of the Tax Code of the Russian Federation).
The individual entrepreneur meets the criteria established for PSN payers (clauses 5, 6 of Article 346.43, subclauses 1, 2 of clause 6 of Article 346.45 of the Tax Code of the Russian Federation).

According to our data, as of May 2020, the PSN has not been introduced in the territory of only one subject of the Russian Federation - the Republic of Sakha (Yakutia).

To find out whether PSN has been introduced in your region in relation to car wash services, you need to download the document used by tax authorities - KVPDP - from the website of the Federal Tax Service of Russia. Or “Classifier of types of entrepreneurial activities in respect of which the law of the constituent entity of the Russian Federation provides for the use of a patent taxation system,” approved. By Order of the Federal Tax Service of Russia dated January 15, 2013 N ММВ-7-3/ [email protected] It is regularly updated on the website

The KVPDP for all regions where PSN has been introduced indicates, in particular, the names of types of activities, their tax code, the norm of the regional law and its validity period. Car wash services correspond to the type of activity “Maintenance and repair of motor vehicles and motor vehicles, machinery and equipment” with tax code 09.

Oleg Logachev