Also, the council’s specialists systematically carry out explanatory work with the population on the prevention of violations and on administrative responsibility when trading and providing services in unspecified places.
Dear residents of Moscow and guests of the capital!
Hand trading is not only a direct violation of the law, but also becomes a prerequisite for other offenses.
In places where illegal traders gather, unsanitary conditions flourish, and there is a high probability of purchasing low-quality products, causing health problems, and deception.
The Moscow Department of Trade and Services warns about the dangers of unauthorized trade and urges you to be careful when making purchases.
Be careful, take care of your health and the health of your loved ones!
The issue of preventing and suppressing unauthorized trade in the Ochakovo-Matveevskoye district is under constant control.
Specialists of the Ochakovo-Matveevskoye district administration, on a daily basis, together with the district Department of Internal Affairs and representatives of the OPOP, monitor the territory, including using city video surveillance systems, to identify violations and suppress unauthorized actions related to illegal trade.
Pensioners, migrants, people engaged in illegal business activities sell food products homemade, herbs, seasonal vegetables and fruits, consumer goods, flowers, Muscovites can see every day near metro stations when going to or from work. Many turn a blind eye to this - it is obvious that pensioners standing in the cold and heat with their modest goods are not from a good life. At the same time, unauthorized trade is a negative social phenomenon, causing considerable harm to the residents of the city.
The first thing that catches your eye is appearance, which imposes unauthorized trade on the city, since it is carried out using improvised means - boxes, wooden boxes, which, as a rule, are obtained from garbage containers, folding tables displayed on routes with high passenger traffic, often trade is carried out directly from the ground.
Secondly, such trade is dangerous to the health and even the lives of buyers, as it is carried out without observing even basic sanitary standards. The traders do not have documents confirming the safety of food and industrial goods, nor do they have sanitary certificates confirming their health.
There were precedents for people with tuberculosis engaging in food trading. Dairy products (cottage cheese, sour cream, milk), pickles, as a rule, are not packaged and are free for insects and their metabolic products to penetrate. Everyone can be convinced of this. Of course, such products are dangerous in relation to the spread of acute intestinal infections.
By consuming them, you can get diseases such as dysentery, salmonellosis, and food poisoning.
Third, despite the seeming spontaneity of trade from hand, it is often orderly and well organized from the inside. So, behind a modest grandmother selling knitted hats or flowers in the passage, there may be wholesale suppliers who have put such trade on stream. Similar facts were also identified by specialists from the district government.
Fight with unauthorized trade is carried out by specialists of the district government on a daily basis. Specialists from the district government carry out raids across the district at least twice a day in order to identify areas where unauthorized trade is concentrated.
Persons trading by hand are warned of the illegality of their actions; if they refuse to stop trading, police are called in, and administrative violation reports are drawn up against violators.
All information about places of unauthorized trade in the district is promptly transmitted to the employees of the Department of Internal Affairs of the Ochakovo-Matveevskoye district.
In order to improve the effectiveness of combating unauthorized trade in the region, there is a mobile group to combat unauthorized trade consisting of responsible employees of the Ochakovo-Matveevskoye District Department of Internal Affairs, specialists from the district government, as well as representatives of the OBOP.
According to Government Decree No. 806-PP of December 10, 2013 “On measures to suppress unauthorized trade in crowded places in the city of Moscow”, measures to control and monitor public places, along with the already listed structural units, are carried out :
· State unitary enterprise of the city of Moscow "Mosgortrans" - within a 50-meter zone from stopping points of public urban passenger transport.
· State unitary enterprise of the city of Moscow “Moscow Order of Lenin and Order of the Red Banner of Labor Metro named after V.I. Lenin" - in the lobbies of metro stations and within the 50-meter zone from metro stations.
· State budgetary institution of the city of Moscow for operation and repair engineering structures“Gormost” - in under-bridge spaces, in underground pedestrian crossings, as well as within the 50-meter zone from under-bridge spaces, underground pedestrian crossings.
· State government agency of the city of Moscow “Transportation Organizer” - within the boundaries of transport hubs, as well as within the boundaries of the 50-meter zone from transport hubs.
· Department of Culture of the City of Moscow - on land plots, including those located within the boundaries of specially protected natural areas of the city of Moscow, provided for use by state cultural institutions of the city of Moscow - culture and recreation parks, estate museums and museum reserves, the Moscow Zoo, the Moscow Association for museum and exhibition work "Museon", subordinate to the Moscow Department of Culture, as well as within the boundaries pedestrian zones of citywide significance for the city of Moscow.
Source: http://ochakovo.mos.ru/pr/unauthorized-trading/
Unauthorized trade. Retail rules:
Unauthorized trade is one of the most widespread violations in the Russian Federation, especially in big cities. They engage in such activities not only themselves Russian citizens who want to earn extra money, but also residents of neighboring countries.
Illegal trade is thriving. Many people simply do not understand that there is any harm from this. And some traders don’t understand why they should waste time registering and then also pay taxes to the state.
But is the fate of a street vendor without official status in Russia so easy?
Illegal sale of goods
According to Russian legislation, trade without registration as individual entrepreneur strictly prohibited.
This applies to selling and things self made, and vegetables from your own garden, and spare parts from your own car.
Unauthorized trade precisely means a situation where entities operate without registration as individual entrepreneurs or in another form.
In order to receive it, you need to register with the tax service. The latter assigns the corresponding status of an entrepreneur or economic entity. Before this, he must choose a taxation system. Once official status is obtained, unauthorized trade can no longer be attributed to it.
However, it must be taken into account that some types of unlicensed activities do not require mandatory registration. For example, selling flowers at retail or small wholesale. To trade them, you only need an agreement with the administration of the retail outlet or market. However, this way you can only sell small volumes of goods.
The concept of illegal trade includes the sale of any goods and provision of services that are considered illegal, promote hatred or discrimination against people, violate copyrights, or offend accepted moral standards. You cannot legalize the sale of such products by registering with the tax service.
The main difference is that unauthorized trade involves the sale of completely normal products and services. They are not considered illegal, do not violate anyone's copyright, and do not promote hatred or discrimination against people based on gender, ethnicity, race or social status.
Legislative norms
The most important document for all enterprises that carry out retail trade, is Government Decree No. 55 of the Russian Federation. It was approved in accordance with the Law “On the Protection of Consumer Rights”, and amendments are periodically made to it.
If the rules of relations between the seller and consumers are not followed, then this is already unauthorized trade. Requirements depend on the type of product. Separately, we should highlight goods and services that are generally not subject to sale in accordance with the law of the Russian Federation.
For example, firearms. Behind the activities of the stores retail monitored by Rosportrebnadzor, State Fire Service, Tax Department. Every entrepreneur must familiarize himself with the list of permitted services, the requirements for their quality and safety.
- Sanitary standards.
- Fire safety rules.
All basic documentation must be contained in the “Buyer’s Corner” or on a special information stand.
There should be rules for the sale of this group of goods, a book of reviews and suggestions, a license, and telephone numbers of regulatory authorities. The store must have price tags, and employees must have badges.
The buyer has the right to return non-food and some other goods within fourteen days.
Consequences of street business
Retail trade rules require mandatory registration as an economic entity.
Unauthorized sale of goods and services falls under the Administrative, Tax and even Criminal Code.
For trading without registration as an individual entrepreneur, a fine of 500 to 2000 rubles is imposed. This is in accordance with Article 14 of the Administrative Code Russian Federation.
For direct trading without registration, the entity will have to pay a fine of 10% of the income received by him, but not less than 40 thousand rubles. This is stated in Article 116 of the Tax Code of the Russian Federation.
For illegal trading activities there may also be a fine of up to 300 thousand rubles. This provision is contained in Article 171 of the Criminal Code of the Russian Federation.
It also provides for illegal trade with arrest for a period of up to 6 months or compulsory community service of up to 480 hours.
If a particularly large income was received as a result of such activity, then a fine of up to 500 thousand rubles may be imposed on the failed entrepreneur. In this case, an arrest for 5 years is even possible.
The sale of alcoholic beverages should be considered separately. According to the Administrative Code of the Russian Federation, a fine of 10-15 thousand rubles is imposed for it. It is mandatory to confiscate all illegally sold products.
Problems in the fight
There are three main reasons why street trading is thriving in large Russian cities:
- Poor response from the police. Often the actions it takes, if they exist at all, turn out to be ineffective.
- The majority of the population not only does not consider unauthorized trade harmful, but also believes in its usefulness. For example, many people are in a hurry from work, so it’s easier for them to buy vegetables near the metro station, from their grandmothers. In addition, the latter usually sell their products cheaper. However, do grandmothers comply with sanitary standards? They do not issue a receipt, so they will not suffer any punishment if their customers get sick.
- Most people find retail regulations very difficult to enforce.
Police work
Suppose a citizen contacted the police about unauthorized trading near the metro. He reports the observed violation. So what happens next? Police officers usually do not arrive immediately and issue a fine for unauthorized trading. They call back the citizen who contacted them. If he has already left the place where these merchants are standing, then they will not come.
Most of them have very close relationships with law enforcement officials. If the citizen remains in place, then the police come and confiscate all the products. However, all counters and accessories remain with the merchants. And after a few hours everything returns to normal.
It is also possible that sellers are informed about the removal, and they “wind up” before the police arrive.
Illegal trade is a common phenomenon in the Russian Federation. We can say that it is considered widespread and is found almost “at every step.” As a rule, this is most often typical for cities with a large number of inhabitants. And this activity is carried out not only by Russians, but also by those who come from neighboring states. In any case, it is worth noting one indisputable fact: such trade is really in a state of “prosperity”. A huge number of sellers do not even realize that such activities are prohibited by Russian legislation. Some people are still aware that it is impossible to trade this way, but they continue to earn money in this way and “run” from law enforcement agencies. But we must not forget that tax evasion is a serious loss for the Russian Federation. So nothing good awaits sellers who are not individual entrepreneurs. They are being fought, albeit not too actively yet. Next, we’ll talk about what kind of fine for unauthorized trade (without registration of an individual entrepreneur) awaits such “businessmen”.
Unauthorized trading is prohibited
Illegal sale of goods
The legislative provisions of the Russian Federation state the following: the sale of any goods is strictly prohibited if the seller has not passed special registration and is not an individual entrepreneur. We are talking about almost any commercial legal relationship that may arise between the parties.
There are a lot of things to consider here important point: Even the sale of vegetables and fruits from a personal garden is prohibited, as well as the sale of things made with one’s own hands, and so on. Naturally, one-time sale of a kilogram of cucumbers to your neighbor is not prohibited. But selling goods on on a regular basis, without having the status of an individual entrepreneur, is strictly prohibited by the laws of the Russian Federation. Otherwise, the violator will be subject to penalties for carrying out illegal business activities. It will not be possible to evade responsibility - the tax authorities have information on every citizen of the Russian Federation.
To engage in activities of this kind, the seller must be recognized as an individual entrepreneur or business entity. Putting this into practice is as easy as shelling pears. But our article is not about how a seller can register as an individual entrepreneur. Having received official status, the seller will save himself from unnecessary hassle and serious troubles. This is the most optimal solution to the problem that has arisen.
Some types of trade without a license still exist. Not every one of them requires a mandatory registration process. Let’s say you can easily sell bouquets at retail or at wholesale prices. To start selling them, you need to enter into an agreement with the market administration or management of a trading institution. But here it is important to understand the following: this method is suitable for selling only a small batch of goods. If you sell large quantities of flowers, this is already illegal trade. In such a situation, the tax authorities may be interested in you.
Sale of prohibited products
Illegal trade– this is the sale of any product (as well as the provision of services of this kind) that promotes a feeling of hatred. This also includes products that lead to violation of copyright or moral standards. Of course, to legalize the sale of such goods in tax authority does not seem possible.
Legitimate trade– this is the sale of products permitted in the Russian Federation. These are also services of the following nature:
- Not beyond the legal framework.
- Not violating anyone's rights.
- Not promoting hatred or discrimination against citizens based on various criteria.
What legislative norms of the Russian Federation govern the solution of the issue under consideration?
Any enterprise engaged in trade must first study in detail the Decree of the Government of the Russian Federation No. 55. It was approved on the basis of the Law “On the Protection of Consumer Rights”. From time to time, certain innovations and changes are made to this law. But they are no different from the resolution adopted by government bodies.
Based on the provisions of the law, unauthorized trading is called failure to comply with the rules of relations of both parties to the transaction. A list of products prohibited for sale in the Russian Federation is also listed. It cannot be legalized under any circumstances. We are talking about narcotic and psychotropic substances, weapons and much more.
What role does Rospotrebnadzor play in resolving this issue?
Rospotrebnadzor is government agency, supervising the work trading enterprises and institutions. These organizations are also subject to mandatory control by the fire service and tax inspectorates. Any businessman, when applying for the status of an individual entrepreneur, always carefully studies the list of products permitted for sale. He must know everything about the requirements for their quality and safety. Enterprises engaged in retail sales, must necessarily guarantee the execution of:
- Sanitation standards.
- Fire safety rules.
Another important point: any enterprise engaged in trade must have a “Buyer’s Corner”. This is a special stand with information on which the conditions for the sale of specific products are described.
There must also be a book in which you can enter your complaints and suggestions for improving service. It is necessary to indicate the contact numbers of regulatory authorities and the license. If this is a store, the products must have price tags attached. Employee uniforms must have special badges. Customers have the right to return non-food products within two weeks.
What are the consequences of unauthorized trade?
As we all already know, trade rules refer to the mandatory registration process of the seller as an individual entrepreneur or business entity. If you sell goods without a special license, you may be charged with an administrative or even criminal violation. The fine for trading without registration as an individual entrepreneur will be equal to 500 - 2,000 rubles, based on the provisions of Article 14 of the Code of Administrative Offenses of the Russian Federation.
Important point: Illegal sale of goods can lead to more significant penalties - up to 300,000 rubles. This norm is spelled out in Article 171 of the Criminal Code of the Russian Federation. In addition, the seller may be arrested for a temporary period of up to six months or subject to community service for up to 480 hours. They can be punished in this way in cases where, as a result of illegal business activities, the offender received a fairly substantial profit (in other words, a good income).
If illegal trade brings good income to the seller, he can be arrested for up to five years. It is also possible to impose penalties - up to five hundred thousand rubles. Thus, it is worth noting the following important fact: organs state power non-stop fight against illegal trading activities. In other words, sellers should still think about the consequences several times before launching illegal sales.
Sale of alcoholic beverages
A separate issue is the sale of alcoholic and alcohol-containing products in the Russian Federation. It is important to remember the following: such goods cannot be sold even if the seller has registered as an individual entrepreneur or business entity.
To sell alcoholic products (drinks containing alcohol), you must obtain a special license. We must not forget that a business of this kind often leads to extremely negative consequences. Based on the provisions of the Code of Administrative Offenses of the Russian Federation, a seller who does not have a license and registration will have to pay a serious fine - from 10,000 to 15,000 rubles. Of course, in such a situation, all found goods are confiscated. If the seller had special equipment on which he produced alcoholic beverages, it must also be confiscated.
What difficulties exist?
And although selling goods without a license is strictly prohibited, large and even small Russian cities are famous for the fact that unauthorized trade flourishes there. Why does this happen? This can be explained quite well:
- Regional law enforcement agencies show a weak response to the issue of sales of products without implementing the appropriate registration process. Sometimes they still try to take some action to combat the current situation, but, as a rule, the effect is short-term. But something else is much more common - local authorities they are simply inactive.
- This “business” is supported by Russian citizens themselves. Those who are in a hurry home from work often buy vegetables from pensioners near the metro, rather than opting for hypermarkets or fairs. In addition, it is important to take into account the following point: trading with a “live” seller is possible, whereas in a supermarket there is no such opportunity. As a rule, it is possible to purchase the desired product at a better price. At this moment, a person does not worry that these entrepreneurs may not care about compliance with sanitary standards. IN in this case The issuance of receipts is excluded, so it is impossible to punish them for selling goods of poor quality. The reason is the lack of evidence of product sales.
- A huge number of Russians agree that it is extremely difficult to force retailers to comply with their requirements.
How do law enforcement agencies act when unauthorized trade is detected?
Let's say a person submits an application to law enforcement agencies with a complaint about illegal trade near a metro station. Although it is extremely rare to encounter this - as a rule, people just walk by and do not pay any attention to such sellers (if they do not need anything). What will happen next? What steps are law enforcement officials taking? Police officers are not dispatched to such calls at the same moment. Issuing fines for legal violations of this kind is also very rare.
Sometimes they wait a certain period of time, and then make a return call and ask the citizen whether such a seller is still there or not. If he suddenly disappeared, the police officers are more likely to not go anywhere.
Important point: a certain part of sellers agree in advance with local authorized persons to sell goods without the corresponding registration process. So law enforcement officials in small towns do not always notice such legal violations.
Law enforcement
Some sellers, upon seeing the police, immediately “curtail” their activities. As soon as the police leave, the trade continues. It’s a shame, but there are countless places like this in our country.
But it is worth noting the following positive fact: over the past year and a half, the fight against unauthorized trade has become clearer and tougher. Thus, in Moscow and the Moscow region it was closed and liquidated huge amount retail outlets and enterprises. All of them did not have the appropriate rights to carry out their activities within the framework of the law. In small towns, not everything is so rosy, but even there the number of retail outlets and tents near metro stations has significantly decreased. So certain changes in in this direction still exist.
Summing up
Thus, our article told you whether it is possible to trade without an individual entrepreneur (no) and what responsibility is provided for those who violate Russian legislation. Unfortunately, today there are a huge number of such violators, and not all of them are aware of the sad consequences (including financial) such illegal activities can lead to.
Therefore, if you are opening your own business selling some products, we strongly recommend that you do not be lazy and first register as an individual entrepreneur. Otherwise, there is a high risk of running into serious trouble and large fines (and if you make a profit on a particularly large scale, you may even receive a real criminal penalty). We hope that the information was useful to you!
The sale of any goods is strictly prohibited if the seller has not passed special registration and is not an individual entrepreneur.
Hello, you as a seller are obliged to convey to the buyer all information about the product
Article 10. Information about goods (works, services)
1. The manufacturer (performer, seller) is obliged to promptly provide the consumer with the necessary and reliable information about goods (works, services), ensuring the possibility of their the right choice. By certain species list of goods (works, services) and methods of communicating information to the consumer are established by the Government of the Russian Federation.
Responsibility for failure to provide information:
Article 12. Responsibility of the manufacturer (performer, seller) for inappropriate information about the product (work, service)
1. If the consumer is not given the opportunity to immediately receive information about a product (work, service) upon concluding a contract, he has the right to demand from the seller (performer) compensation for losses caused by unjustified avoidance of concluding a contract, and if the contract is concluded, to refuse it within a reasonable time execution and demand the return of the amount paid for the goods and compensation for other losses.
In case of refusal to fulfill the contract, the consumer is obliged to return the goods (result of work, services, if possible due to their nature) to the seller (performer).
2. The seller (performer), who has not provided the buyer with complete and reliable information about the product (work, service), bears responsibility under paragraphs 1 - 4 of Article 18 or paragraph 1 of Article 29 of this Law for defects in the product (work, service) arising after its transfer to the consumer due to his lack of such information.
3. If harm is caused to the life, health and property of a consumer due to failure to provide him with complete and reliable information about a product (work, service), the consumer has the right to demand compensation for such harm in the manner provided for in Article 14 of this Law, including full compensation for losses caused natural objects owned (possessed) by the consumer.
4. When considering consumer claims for compensation for losses caused by unreliable or insufficient complete information about a product (work, service), it is necessary to proceed from the assumption that the consumer does not have special knowledge about the properties and characteristics of the product (work, service).
The same complaint will be sent to the prosecutor's office, Rospotrebnadzor, and there will be little good.
Article 14. Property liability for damage caused as a result of defects in goods (work, services)
1. Damage caused to the life, health or property of a consumer due to design, production, prescription or other defects of a product (work, service) is subject to compensation in full.
2. The right to demand compensation for damage caused as a result of defects in a product (work, service) is recognized for any victim, regardless of whether he was in a contractual relationship with the seller (performer) or not.
3. Damage caused to the life, health or property of the consumer is subject to compensation if the harm was caused within deadline service or shelf life of the product (work).
If a product (result of work) should be established in accordance with paragraphs 2, 4 of Article 5 of this Law, a service life or expiration date, but it is not established, or the consumer was not provided with complete and reliable information about the service life or expiration date, or the consumer was not informed about the necessary actions upon expiration of the service life or expiration date and the possible consequences of failure to perform these actions, or the product (result of work) after the expiration of these periods poses a danger to life and health, the damage is subject to compensation regardless of the time it was caused.
If, in accordance with paragraph 1 of Article 5 of this Law, the manufacturer (performer) has not established a service life for the product (work), damage is subject to compensation if it is caused within ten years from the date of transfer of the product (work) to the consumer, and if the day of transfer cannot be determined , from the date of manufacture of the goods (completion of work).
Damage caused as a result of defects in the goods is subject to compensation by the seller or manufacturer of the goods at the choice of the victim.
Damage caused as a result of deficiencies in the work or service is subject to compensation by the contractor.
4. The manufacturer (performer) is responsible for damage caused to the life, health or property of the consumer in connection with the use of materials, equipment, tools and other means necessary for the production of goods (performance of work, provision of services), regardless of whether the level of scientific knowledge allowed and technical knowledge to reveal their special properties or not.
Illegal street trading evokes different associations among people. For some, this is the only way to survive, while others believe that this is unacceptable for society. In what cases trade is considered illegal and what sanctions will follow, you will learn from this article.
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In what cases is registration of business activity not required?
Every resident who sells any group of goods is automatically a businessman. For the legal implementation of subsequent activities, it is necessary to register an individual entrepreneur with all necessary documents for goods and services sold. A person selling various types of goods must also organize a consumer corner.
To begin with, you should understand that there are certain cases that give the right not to register your activities as a legal entrepreneur. These are:
- trade in small goods;
- products of own production.
What is considered illegal trade?
To hold a regular fair, you need a trading area. Here you can find products from local craftsmen, vegetables and fruits grown at home. Even such events require permission from higher-ranking organizations. This type of event must be strictly regulated.
Illegal trade is considered:
- Copyright infringement.
- Products strictly prohibited for distribution.
- No license.
- Groups of products that offend morality.
Gross violation of the law is subject to further liability: criminal, administrative or tax. In most cases, trading citizens are prosecuted under articles of the Tax and Administrative Codes.
The main problems in combating illegal trade
A number of reasons are being built to which higher authorities practically do not react. There are many illegal buildings, portable trading stalls and tents with a wide variety of goods. All police actions regarding the facts of such trading on the streets do not bring success.
The authorities do not welcome chaotic trading on city streets due to the threat of violating sanitary, epidemiological, fire safety and road safety generally.
In turn, traders form their own unequivocal opinion that it is impossible to adhere to all legal principles of trade. And a large percentage of the country’s population has a positive attitude towards unauthorized trade pavilions from the point of view pricing policy. The danger lies in only one thing - failure to comply with sanitary standards.
What size fines can be imposed?
Read:For violators engaged in such trade, there are several types of punishments that will be faced in the following cases:
- The main violation is an unregistered individual entrepreneur. In accordance with the articles of the Code of Administrative Offenses of the Russian Federation, it is imposed, the amount of which ranges from 500 to 2 thousand rubles.
- Lack of a number of documents for trading. In this case, the total size depends on who owns the trading business. Depending on this, it ranges from 2 to 50 thousand Russian rubles. The question of whether the product will be available or not is also decided.
- Identification of large profits. According to Article 171, it is also a reason for criminal punishment. In this case, a monetary penalty may be imposed, or.
- Failure to comply with sanitary standards and fire safety rules.
According to current legislation, in the capital the penalties for offenses will be significantly higher than in the regions.
Features of street trading near roads
Street resale of vegetables and fruits is very common. On roadsides and pedestrian sidewalks there is not even the possibility of complying with sanitary standards. In this case, the main legal decision will be registration with the Federal Tax Service as legal entity. The hiring of salespeople must be officially taken into account in reporting Pension Fund and Social Insurance.
It should be remembered that the sale of goods along roads, near bus stops, near shops and similar public places is strictly prohibited. Committing this kind of action is an administrative legal violation.
The amount of liability for ordinary citizens starts from 1500 to 4500 rubles, for registered legal entrepreneurs– from 7,000 to 22,000 rubles. For the next violation it increases several times.
Organization of the fair
Read:
On the eve of the New Year, almost all cities and towns organize Christmas tree markets and fairs. To trade forest beauties, you should perform a number of actions:
- Contact the local administration with a request to provide a place for a comfortable location of coniferous trees. Acceptable area – 30-70 square meters. If there are two or more applicants for entrepreneurial activity, an auction is held.
- When obtaining permission to use the site as property, you should read the clauses of the agreement. Basically, the document is issued for a period of up to 5 years, with the use of the territory a certain number of days annually.
- The administration representative will also provide a list of what is needed to equip the Christmas tree market. It includes: a book of complaints and suggestions, a measuring ruler, a fire extinguisher, invoices for goods (to confirm that the trees were cut down legally).
The Criminal Code punishes unregistered entrepreneurs for the lack of trade invoices. Illegal business can be punished
The second article of the Civil Code of the Russian Federation provides a definition of entrepreneurial activity. It says that it is considered to be the activity of a citizen that is carried out independently and is aimed at systematic profit by providing, selling goods, products, services and performing any work. And Article 23 of the Civil Code of the Russian Federation states that an individual is obliged to register before starting his activities.
But what if a citizen carries out entrepreneurial activity Without registering an individual entrepreneur, what fines does he face for such trading? We will find answers to the questions posed in this article.
Main aspects of entrepreneurial activity
So, what entrepreneurial activity includes has already been said above. But it is possible to prove that a specific person is engaged in entrepreneurial activity only if this happens systematically and with regular profit. An activity can be considered systematic if it is carried out more than twice a calendar year.
In the event that an individual once sold something (any property) or provided any service, he cannot be considered a citizen conducting business activities. This also applies to profits. Even if a person regularly sells goods, but at the same price as when they were purchased or even lower, he is not considered an entrepreneur. This is because there is no profit.
Concept of illegal trade
As practice shows, there are quite a lot of citizens on the territory of the Russian Federation who are engaged in trade and do not have individual entrepreneur registration. Such lawbreakers can easily be called illegal traders. But what exactly can be considered illegal trade? This includes:
- services, goods declared illegal;
- service or product that violates copyright;
- goods and services that are in any way related to the promotion of hatred and discrimination against a person (this may be social, racial, ethnic or gender based);
- harmful goods and services that offend moral values;
- sale of licensed goods without permission and proper registration (individual entrepreneur, LLC).
If we take into account unlicensed activities, then, in some cases, you can do without registering an individual entrepreneur or LLC. For example, selling bouquets of flowers at the market. Here it will be enough to simply conclude an agreement with the manager of this market.
Now we suggest you find out what fines are imposed for trading without registering an individual entrepreneur. Here it is necessary to clarify the responsibility that will be incurred by an entrepreneur who has violated the law and has not registered as an individual entrepreneur. It's not that simple; sometimes you can't get away with fines. The legislation of the Russian Federation provides for administrative, tax and even criminal liability for this offense. First things first.
Administrative responsibility
As for the administrative liability that an unregistered entrepreneur conducting trade may incur, here it is necessary to refer to the Code of the Russian Federation on Administrative Offenses. It is he who regulates this question, namely part one of article 14.1. It says that trading without registering an individual entrepreneur is prohibited, and anyone who violates this ban will receive a fine of 500–2000 rubles.
Article 23.1 of the Code of the Russian Federation on Administrative Offenses states that bringing a citizen to administrative responsibility is entrusted to the magistrate. It is he who makes this decision. The case is being examined in the locality or area where the offense was committed. But if an individual filed a petition requesting that the case be considered at his place of residence, then this option is also possible.
Who can draw up a protocol on an offense? This action is allowed to be done by the police, tax office, territorial bodies of the Ministry of Antimonopoly Policy, State Inspectorate for Trade and Quality of Goods, Protection of Consumer Rights. This is stated in Article 28.4 of the Code of the Russian Federation on Administrative Offenses.
It is also possible for a prosecutor to initiate a case for this offense. How is a violation report drawn up? Most often, employees of any of the organizations listed above conduct an inspection.
This may concern an inspection of the premises where trade is carried out, or perhaps a test purchase. This is where it is discovered that this citizen is breaking the law, since he is simply not registered as an individual entrepreneur. Having convinced themselves of this, on-site inspectors draw up a protocol on the violation.
It should be noted that the case of this administrative offense has been considered for quite a long time. All because attraction individual liability is possible only when two months have passed from the day the protocol was drawn up.
There are cases when the protocol is drawn up incorrectly, allowing for some errors and omissions. Then the judge returns it back to the department that was involved in drawing up this protocol. If it is not returned to the court in a corrected form within 2 months, the case will be dismissed.
Tax liability
The Tax Code of the Russian Federation devotes two articles to the issue of liability for carrying out business activities without registration: 116, 117. If a citizen does not come to the inspectorate in order to register and carries out trade, then he will have to pay ten percent of those incomes. which he managed to receive (this amount cannot be less than twenty thousand rubles).
If an individual has been conducting illegal business activities without registration for three months or more, then he will have to pay a fine of 20 percent of the profit (not less than forty thousand rubles). In the event that the deadline for registering with the inspectorate is violated, the fine will range from five to ten thousand rubles.
Criminal liability
The Criminal Code of the Russian Federation provides for liability for illegal trade. This information is contained in Article 171 of the Criminal Code of the Russian Federation. A citizen may incur criminal liability if he has received income from illegal trade of more than 250,000 rubles. Also, this liability threatens those citizens who, as a result of their activities, caused major damage to people, enterprises or the country.
Of course, the guilt of an individual must be proven. Criminal punishment for a citizen who has committed illegal trade and caused damage of 250,000 rubles or more is implied in the form of a fine of 300,000 rubles or compulsory labor for a period of 240 hours. Arrest for a period of six months is also possible here.
If a citizen, while committing illegal activities, received an income of 100,000 rubles or more, then he will be punished with five years of imprisonment and a fine of about 80,000 rubles. When a citizen has positive characterization and has not previously been brought to any responsibility, he will most likely “get off” with a fine.
Of course, what kind of punishment a trader who violates the law will suffer depends on the specific situation and the available facts.
Video - “Consequences of working without registering an individual entrepreneur”