The beginning of 2019 in the Russian Federation was marked by changes at the legislative level. One of the urgent changes was a complete ban on street trading without legislative permission.
The Russians will no longer be able to sell cultivated products from their gardens, as was the case until 2019. The ban has been in effect since 2017, but responsibility and control were low. Since the beginning of this year, a law has come into force that strictly regulates the punishment for violation and provides for both administrative and criminal liability.
The law on the ban on street trading
Street trade in “homemade” products has existed since Soviet times. Until 2017 in Russia, it was practically not infringed, regulated, but did not take a tough form of control. Every citizen who grew agricultural products could easily realize the surplus in the street, where a large flow of people passes every day.
From the beginning of 2019, it is necessary to sell products grown for one’s own needs according to federal regulations on the prohibition of street trading. In order to receive income from the sale of grown products, the subjects (citizens of the Russian Federation) must register their activities at the legislative level. The reason for the changes was practical impunity for selling in unauthorized places. The harsh preventive measure has become enforced at the legislative and executive levels.
According to the law, citizens engaged in the sale of vegetables, fruits, canned goods, meat, are entrepreneurs. So, must pay tax.
- The imposition of a fine. Due to the incomplete awareness of citizens about the adoption of new laws, the first time the executive authorities charge a violator with a fine in the amount of 500-2000 rubles (the amount of the fine is determined depending on the volume of products sold). Law enforcement agencies enter the citizen’s personal data into the database in order to apply a more stringent preventive measure in case of repeated violation.
- Deprivation of liberty. In cases of repeated violations, a citizen is (not) held accountable, which carries a restriction of freedom of up to 5 years. The sentence about term of imprisonment is taken out in a judicial order.
If the sale of “homemade” products is the main way to make money, then it is better to submit to the “letter of the law” and register as an entrepreneur, making contributions to the budget.
Payment of taxes from the sale of agricultural products grown on their own land will bypass citizens who have a household that does not exceed the size in accordance with Federal Law No. 112 “On personal subsidiary farming”. Landowners are allowed to sell grown garden crops, processed foods, poultry, and cattle.
If your household is not subject to the innovations, then you should not forget about the sanitary and hygienic quality certificate of the products sold.
In order to receive a benefit, a citizen must contact the tax inspectorate to issue a certificate, which exempts from paying tax. In order to qualify for a benefit, a Russian must file documents with the tax authorities:
- certifying the ownership of the declared plot with the location and area;
- certificate of authorization issued by local authorities that the products were grown on the site, and not purchased;
- certificate from the Pension Fund, on entrepreneurship and others, at the request of the tax inspector.
Only by collecting all the documents, the tax inspector can issue a permit that you can sell garden crops or meat from the site without paying tax, without breaking the law.
How to get permission to trade
Permit to sell, grown on the farm, can get every gardener. Initially, it is necessary to contact local authorities for permission to sell the grown product. In the application for a certificate, you must specify the place where it will be sold, the name of each type of product, who will trade.
Implement grown or processed garden crops, meat is possible only in specially designated areas. Sale in an unauthorized place in the presence of all certificates will be considered an offense. Consider the fact that the certificate should indicate all the products that you will sell. In case of violation of at least one provision during the execution of documents, the penalty for non-compliance with reality may be up to 2500 rubles.
Remember that ignorance of the law is no excuse. Even if you have not heard of the new law on the prohibition of trade on the street, this is not not depriving you of responsibility. If the sale of home-grown products is the main income, then it is necessary to collect all the documents and pay the specified tax, than to ignore the prescriptions of the law and lose their freedom.