Obviously, everyone has witnessed unauthorized trade in food or non-food products near the metro, on the highway from a car, or simply on the sidewalks of populated areas. Such actions cause mixed reactions among the country's population. Some citizens do not see anything wrong with this, but others are categorically against such sales. what the consequences of illegal street trading for sellers and buyers, as well as what fines under the articles of the Code of Administrative Offenses in Russia are provided for violators.
Legislative aspects of entrepreneurship.
Before discussing possible penalties for unauthorized trading, it is worth knowing what the violation actually consists of. Why is trading in tents or from trays outside the law?
So, illegal trade on the street has all the signs of entrepreneurship. After all, this is an independent activity carried out with the aim of regularly receiving income from the sale of goods, services, as well as the use of property. Although the Constitution of the Russian Federation openly allows all Russian citizens to conduct business activities (Article 34), the Civil Code introduces some clarifying points.
Thus, Article 23 of the Civil Code stipulates that individuals are allowed to conduct business activities only after registering with the tax authority as a legal entity or individual entrepreneur. These actions are not required if there is an agreement on the formation of a farm and the activity is of an economic nature.
At the same time, it is allowed to conduct trade as a self-employed citizen if self-produced goods are sold. However, this also requires official registration and tax registration.
Read: Professional income tax – what is it?
Thus, the first good reason for a fine for illegal trade is the lack of registration with the Federal Tax Service, as well as the right to engage in business.
What trading activities can be considered unauthorized?
Trade is the sale of goods aimed at making a profit.
In any legal state, including Russia, trading activities are regulated at the legislative level. Trading is permissible only after obtaining permits. We will analyze in 4 stages how to organize legal trade on the territory of the Russian Federation.
| No. | Stage |
| 1 | The trader himself must register his legal status. To conduct trading activities, he will need to register as an individual entrepreneur or register as a legal entity. In this case, trade during registration must be included in the list of permitted activities. Those. An LLC that is registered to conduct activities in the development of rocket modules cannot simply open a store selling bread. |
| 2 | Permission must be obtained to sell specific products. Not every trade activity is separately licensed. For example, to sell alcohol-containing products you need to obtain permission. This issue should be clarified with local authorities or contact the licensing center. |
| 3 | The product itself must be licensed. As a rule, the permitting documentation for it is issued by the manufacturer or large supplier. But the seller needs to monitor its availability. |
| 4 | Permits for the use of retail space are required from various regulatory authorities (fire inspection, SES, etc.). |
Trading activities in the absence of such permitting documentation will be regarded as unauthorized .
Of course, these restrictions apply only to persons for whom trading activities are a source of constant, high income. If the grandmother decides to sell carrots from her plot, she does not need to obtain a license. But it must carry out trading activities only on specially equipped sites. For example, for people who want to sell fruits and vegetables from their plots, small covered counters are set up at the market in populated areas. To trade, citizens simply need to obtain permission from the market director. It is issued free of charge.
Such trading will not be considered unauthorized. But if this same grandmother starts selling her carrots at a bus stop, this is already a violation.
What amounts to illegal trade?
Perhaps the most common cases of selling goods on the street are illegal if a citizen does not operate as an individual entrepreneur, organization or self-employed person. Because he does not have the right to sell anything and make a profit from it on a systematic basis. However, these are far from the only circumstances for which they can be held accountable. Illegal trade includes:
- Sales of goods in violation of copyright;
- Sale of prohibited products;
- Trading in the wrong place;
- Lack of licenses for goods;
- Sales of products that contradict or offend moral aspects.
In turn, the degree of punishment will depend on the severity of the violation and may lead to tax, administrative and even criminal liability.
Read: Responsibility for violating trade rules.
It is worth noting that a number of organized events, such as fairs, may have similar characteristics to illegal trade. However, when they are carried out they:
- Placed on trading floors or squares;
- Conducted with the permission of the administration of the region, city or district;
- Present for sale the products of local farmers or craftsmen;
- Complies with established regulations;
- They have a small frequency (as a rule, they are confined to holidays).
In what cases is registration of business activity not required?
Any sale of goods, according to the law, is a business. Therefore, the seller must register an individual entrepreneur and also organize a consumer corner. But there are exceptions to this rule. Activities may not be registered if:
- Sale of small goods.
- Own production.
But, for example, organizing a fair with crafts or agricultural products from personal plots requires official permission.
Illegal street trading: fines.
Violators of trade laws may be punished in accordance with several legal acts:
Illegal trade on the street fines according to the Code of Administrative Offenses of the Russian Federation (Article 14.1):
1. Lack of state registration as an individual entrepreneur or legal entity: 500 – 2,000 rubles;
2. Trade without a license or special permit is punishable by confiscation and a fine:
- 2,000 – 2,500 rubles for citizens;
- 4,000 – 5,000 rubles for officials;
- 40,000 – 50,000 rubles for companies.
3. Sales in violation of the terms of the license may be punished:
- Warning;
- Fine (individual 1,500 - 2,000, officials 3,000 - 4,000, legal entities 30,000 - 40,000 rubles);
If violations of the permit requirements are gross, a fine will be imposed in the amount of:
- 4,000 – 8,000 rubles for individuals, including individual entrepreneurs;
- 5,000 – 10,000 rubles for officials;
- 100,000 – 200,000 rubles for organizations.
It is worth noting that in this case the fine can be replaced by suspension of activities for 3 months.
Unauthorized trade in accordance with the Criminal Code of the Russian Federation (Article 171):
Punishment is provided for trading without state registration or a license if such activity has resulted in major harm or large-scale profits. In this case, illegal trading on the street will entail a fine of up to 300,000 rubles. It can also be punished by arrest or forced labor. If the law is violated by a group of people, then the fine can be increased to 500,000 rubles, and the maximum penalty will be 5 years in prison with an accompanying fine (80,000).
Tax Code of the Russian Federation on violations of tax registration (Article 116):
- If the deadline for submitting an application for registration and registration is violated, the person risks being fined 10,000 rubles;
- If a company or entrepreneur has not registered for tax purposes and carries out trading activities, then the penalty in rubles will be 10% of the income received during the trading period. The smallest fine in such cases is 40,000 rubles.
Read: Responsibility for begging.
Trade without EGAIS
The system of state control over the production and trade of alcoholic beverages (USAIS) was created in order to track the purchase of batches of alcohol from legal producers.
All sellers of similar products are required to use this system. To do this, you need to register on the Rosalkogolregulirovanie website and obtain an electronic signature. After registration, the applicant receives a personal number, which will be used to issue invoices when purchasing alcohol.
To trade beer, it is enough to confirm with the help of EGAIS the legality of purchases of wholesale quantities of goods, and for stronger drinks you will have to account for each bottle sold.
Violation of these requirements, as well as trading without a cash register, will be punishable by a fine under article of the Code of Administrative Offenses of the Russian Federation No. 14.5:
- From 1/4 to half of the sales amount for individual entrepreneurs and heads of organizations (but not less than 10,000 rubles).
- From 3/4 to the entire sales amount for organizations (but not less than 30,000 rubles).
Thus, trading without the Unified State Automated Information System is considered a fairly serious violation of the law.
If you notice illegal trading on the street, where should you go and complain?
If illegal street trading causes harm to citizens or organizations, then it may be necessary to abolish the retail outlet. It is not allowed to exercise arbitrariness according to the laws of the Russian Federation. However, any citizen has the right to report noticed violations to the authorized bodies. In turn, you can file a complaint:
- Contact the local inspector if a violation is noticed near your place of residence;
- To police officers;
- To the city or district administration;
- To the City Property Management Committee;
- To the prosecutor;
- To the tax service.
Read: Complaint to the tax office.
Illegal street trading - opinions of the parties.
Unaccounted sales account for an entire economic sector. In some cities, the scale of illegal trade on the streets is truly extensive. Views on this matter vary, since at least three parties are involved in the process.
Sellers.
The lion's share of outdoor traders are visiting citizens, as well as elderly people. The first may be natives of other Russian regions or a completely different state. Opening a retail outlet for them in violation of the law is sometimes an extreme step. “The family is large, but there are not enough funds to support it.” Finding a well-paying job is not always possible, nor is obtaining the appropriate permits, citizenship, licenses and registration. Therefore, trading “around the corner” is the only way out. Of course, not every situation is so acute. And a common reason for violations is simple – unwillingness to pay taxes.
As for older people, for them illegal trading on the street is an increase in their pension. But, as you know, it does not shine with its large size. It turns out that the conditions created by the state itself are pushing pensioners to take illegal actions.
Of course, both cases are not excuses and cannot be encouraged. The law is written for everyone. But, if the first group, being capable, can find an alternative, then what should we do with grandparents? “Understand and forgive” or keep within the law?
Read: Individual entrepreneur taxes.
Buyers and passers-by.
As they say, without demand there would be no supply. While buyers “support with rubles” the unauthorized circulation of goods, tents, kiosks and stalls will open again and again. What motivates people to shop there? As a rule, the reasons are the same:
- Convenient location of the point “along the way”;
- Prices are lower than in stores;
- Availability of the necessary assortment;
- The product is fresh and of higher quality, according to buyers.
As you can see, sellers near the metro and on the streets offer people what supermarkets cannot offer: a quality product at low prices. As a result, illegal trade is in demand. But if you bought it, it means you supported and encouraged the violation.
The reverse side consists of citizens who are against this phenomenon because:
- Poisoning from unlicensed products that have not passed the appropriate tests cannot be ruled out;
- Pedestrian paths are blocked, as well as free space on the streets, creating difficulties in movement;
- Trading is often accompanied by calls and voice over a loudspeaker;
- There is concern about the state of the city budget, which does not pay taxes on illegal sales;
- The influx of non-indigenous people is increasing, creating congestion in transport networks, as well as public places;
- A lot of garbage remains after collapsing the points;
- The activities of sellers are illegal.
Government bodies.
The reaction of government agencies, as well as law enforcement agencies, is also not clear. As a rule, it largely depends on the region and local leadership. For example, in some settlements a position is defended in accordance with regulations and all observed facts of illegal trade on the streets are suppressed as quickly as possible. But in others, according to eyewitnesses, the administration and police turn a blind eye to this, not taking appropriate measures, and sometimes even providing assistance.
