Souvenir products are items on which a certain sign, logo is applied, which indicates affiliation with a company, country or place. Initially, it is considered a type of advertising, but at the same time, the essence of the word “souvenir” gives such goods a slightly different meaning. It literally translates from French as “memory.” This versatility of the concept increases business opportunities associated with the production and sale of souvenirs.
A large number of entrepreneurs want to indicate just such an activity as their main one. But to do this, you need to be well versed in the state classifier in order to assign souvenir products to the correct class and subclass according to OKVED. Working with tax authorities depends on this, who may fine you for choosing a statistics code that does not correspond to the actual business being conducted. In addition, the wrong type of activity can confuse counterparties.
Entrepreneurs who plan to get business from working with souvenir products need to very carefully understand what exactly they will be doing. The OKVED code, which will need to be selected when registering with the tax office, depends on this.
Souvenir products include a fairly large number of different goods. Some make printed souvenirs, others make them from ceramic dishes, and others use photographs. Such goods, as determined by the entrepreneur himself, can be listed as souvenirs. But at the same time, there are no requirements anywhere that individual entrepreneurs cannot choose a statistics code for their business in a narrower area. For example, based on the listed types of activities, you can select both income from souvenirs and more general codes:
- for printing, which is not mentioned in other types according to OKVED, use the digital designation 22.22;
- for the manufacture of ceramic and household products, the digital designation 26.21 is used;
- for the use of photographic equipment and the use of photo printing, indicate code 74.81.
Also, to select a statistics code, it is necessary to take into account what the entrepreneur plans to do with souvenirs:
- produce;
- implement.
Of course, an individual entrepreneur can indicate several types of activities during registration, but still one is established as the main one. Therefore, even if a businessman manufactures and later sells his products, it is necessary to decide what to devote more time to. 
It is worth noting that there are no specifics regarding the production of souvenirs in OKVED. That is, it is impossible to find a code with the name “Manufacture of souvenir products” in the classifier. Therefore, those who plan to register such a business do not even have to waste time looking through all sections and groups of OKVED.
In the current version of the classifier, such activities, which are aimed at producing souvenirs, are classified by most tax service specialists in class 32. It is assigned to various types of production of products that are not included in other specific lists. All types of production, consumables, and use of goods from this group have a fairly wide list of consumables, methods of use and other characteristics.
Today this code belongs to section D of OKVED, but the modern version of the classifier will soon lose its validity. From January 1, 2017, this class, according to OKVED-2, will be in section C, but with the same name “Manufacturing industries”.
But OKVED 36.1 is a fairly large group that contains various types of activities. For those who are specifically involved in the production of souvenirs, it is best to focus on the subclass that best characterizes the product:
- 50 – includes games and toys that can also act as souvenirs;
- 6 – includes items that often act as souvenirs, namely:
- pens;
- pencils;
- umbrellas;
- lighters;
- handicrafts and others.
Starting from 2017, class 36 will move to class 32, which entrepreneurs can focus on as early as 2019.
Trade in souvenirs
As for the direct sale of souvenir products, it will be much easier for entrepreneurs who decide to make this activity their main activity. OKVED has a section and subclass that clearly defines the trade in souvenirs.
We are talking about code 52.48.34. The full name of this digital designation of one of the types of activity includes not only the trade in souvenirs, but also folk crafts, goods that can be classified as cult or religious items, and funeral supplies.
Choosing this code when registering for individual entrepreneurs who sell souvenirs will be absolutely correct. Although this is far from the only option. After all, this code is used specifically for retail trade.
In addition to this, by the way, you can also use:
- code 52.48.24, which involves retail trade in games, as well as toys, which are often souvenirs;
- code 52.48.3, which means retail trade in non-food products not included in other groups;
- code 52.47.3 allows retail sales of publishing houses and stationery.
- 44.2 - subclass, which is used in cases where wholesale trade occurs between the supplier and the buyer of ceramics and glass products;
- 47 – subclass that is used when souvenirs can be classified as food products:
- 47.2 – designation for the wholesale sale of publishing houses and stationery;
- 47.3 – indicates wholesale trade in other food products;
- 70 – subclass to define activities related to wholesale trade of all other types.
An experienced lawyer or tax official will help you choose the OKVED code as correctly as possible, especially when making wholesale deliveries that require a lot of money. Such consultation can significantly reduce costs during business due to the taxation system, as well as fines for incorrect OKVED code. Therefore, you need to take this seriously and review all possible codes for your business in advance.
Related posts:
No similar entries found.
An individual entrepreneur (currently without employees, in the future 1-2 people) is engaged in the production and sale, as well as resale of finished souvenir products. What code in OKVED is provided for this type of activity? What taxation system can be used in this case? Is it possible to purchase a patent?
1) for retail trade in souvenirs and folk arts and crafts, OKVED 52.48.34 is established. As for their manufacture, it all depends on what products are made and from what material (stone, wood, etc.); 2) the patent taxation system is applied to such type of activity as the production of folk arts and crafts. Therefore, if an entrepreneur is engaged in this type of activity, he can switch to the patent taxation system, provided that he meets the other requirements necessary for applying this regime. In addition to the patent system, for the type of activity “manufacture and sale of home-made souvenir products”, it is possible to use a simplified tax system (subject to compliance with the requirements necessary for the application of this regime) or a general taxation system. For activities related to the resale of souvenir products, you can apply the UTII taxation system (subject to compliance with the requirements necessary for the application of this regime), which has been voluntary since 2013 (manufacture and sale of products of one’s own production are not subject to UTII). In addition, an entrepreneur can combine different taxation regimes with different types of activities (for example, simplified taxation and UTII, or patent and simplified taxation, or patent and UTII, or the general system and UTII), but for this it will be necessary to keep separate records of business transactions.
The rationale for this position is given below in the recommendations of the Glavbukh System and in the regulatory documents, which you can find in the “Legal Base” tab.
The patent taxation system is an independent special tax regime, which is applied on a voluntary basis (Chapter 26.5, paragraph 2 of Article 346.44 of the Tax Code of the Russian Federation).
It is possible to switch to a patent taxation system only in those constituent entities of the Russian Federation where this tax regime is established by regional legislation (clause 1 of Article 346.43 of the Tax Code of the Russian Federation).
The list of regions in whose territory the patent taxation system has been introduced is presented in the table.*
Conditions for applying the special regime
Only entrepreneurs can apply the patent taxation system and only if the following conditions are simultaneously met:
– the type of activity that the entrepreneur is engaged in (plans to engage in after acquiring a patent) is indicated in paragraph 2 of Article 346.43 of the Tax Code of the Russian Federation. In this case, the entrepreneur has the right to apply this special regime when providing services (performing work) both for the population and for organizations. In addition, constituent entities of the Russian Federation have the right to expand this list by adding other household services specified in OKUN (subclause 2, clause 8, article 346.43 of the Tax Code of the Russian Federation). However, it is possible to apply the patent taxation system when providing such services only in relation to those that are provided only to the population (letter of the Ministry of Finance of Russia dated December 28, 2012 No. 03-11-11/398);
– an entrepreneur operates independently or with the involvement of hired personnel (including under civil contracts), the average number of which does not exceed 15 people. The average number is determined for the period for which the patent was issued;
– the activity is not carried out within the framework of a simple partnership agreement (joint activity agreement) or a property trust management agreement.
The listed conditions must be met during the entire period of validity of the patent.*
This conclusion follows from the provisions of paragraphs and Article 346.43 of the Tax Code of the Russian Federation.
The form of settlements with buyers (customers) does not affect the possibility of applying the patent taxation system, that is, an entrepreneur can receive payment from organizations and the population both in cash and in non-cash forms (letter of the Ministry of Finance of Russia dated January 21, 2013 No. 03-11- 12/07).
Tax exemption
An entrepreneur applying the patent taxation system is exempt from paying:
– VAT (with the exception of VAT on the import of goods and when carrying out operations under agreements of joint activities, trust management of property or concession agreements);
– tax on property of individuals (only in relation to property that is used in taxation). entrepreneurial activity in respect of which the patent system is applied;
– Personal income tax (only in relation to income received from carrying out business activities in respect of which the patent tax system is applied). Moreover, if during the period of application of the patent taxation system an entrepreneur receives income from obligations of previous periods in which he applied a different taxation system, these incomes on this basis are not exempt from personal income tax, even if the entrepreneur continues to conduct the same type of activity as before ( letter of the Ministry of Finance of Russia dated January 21, 2013 No. 03-11-12/06).
Moreover, in the latter case, reduced insurance premium rates are established for entrepreneurs. They can be used by all entrepreneurs, except those engaged in:
– leasing of own premises (dachas, land plots);
– retail trade;
- public catering.
When carrying out the listed types of activities, the entrepreneur must pay insurance premiums at general rates.
This procedure is provided for in paragraph 14 of part 1 of Article 58 of the Law of July 24, 2009 No. 212-FZ.
It is impossible to reduce the cost of a patent by the amount of insurance premiums, since Chapter 26.5 of the Tax Code of the Russian Federation does not provide for such a possibility.
Exemption from filing a tax return
An entrepreneur who uses a patent taxation system is exempt from submitting a tax return under this special regime ().
For what types of activities is a patent issued?
The list of types of activities for which a patent can be obtained is established by paragraph 2 of Article 346.43 of the Tax Code of the Russian Federation. At the same time, constituent entities of the Russian Federation have the right to expand this list in relation to other household services specified in OKUN (subclause 2, clause 8, article 346.43 of the Tax Code of the Russian Federation). If an entrepreneur plans to simultaneously engage in several of the listed activities, he must obtain patents for each of them.
Each patent is issued only for one type of activity and is valid in the territory of the constituent entity of the Russian Federation that is indicated in it. At the same time, with regard to retail trade, the Ministry of Finance of Russia in a letter dated December 14, 2012 No. 03-11-11/378 explained the following. If an entrepreneur has several retail outlets in one subject of the Russian Federation, the sales area of each of them is no more than 50 square meters. m, then there is no need to obtain a patent for each outlet. In this case, one patent will be valid for all retail outlets located on the territory of one constituent entity of the Russian Federation.*
Sergey Razgulin
Deputy Director of the Tax and Tax Department
customs and tariff policy of the Ministry of Finance of Russia
The use of UTII is allowed in relation to retail trade in goods:
- using means of distribution (distribution) trade.
Retail trade for UTII purposes does not include the sale of:
- excisable goods specified in subparagraphs 6–10 of paragraph 1 of Article 181 of the Tax Code of the Russian Federation (for example, motor gasoline, diesel fuel, motor oil, etc.);
- food and beverages, including alcoholic beverages, both packaged and packaged, and without in catering facilities;
- products of own production (manufacturing)*, including products produced (manufactured) from the seller’s materials under a contract (letter of the Ministry of Finance of Russia dated August 5, 2009 No. 03-11-06/3/205);
- unclaimed items in pawn shops;
- gas;
- trucks and special vehicles and trailers (semi-trailers, trailers) for them;
- buses of all types;
- goods according to samples and catalogs outside the stationary distribution network (for example, in the form of mail, through television and online stores, electronic terminals, telephone communications);
- medications on preferential (free) prescriptions.
This follows from Article 346.27 of the Tax Code of the Russian Federation.
Elena Popova
State Advisor to the Tax Service of the Russian Federation, 1st rank
3. Tax Code of the Russian Federation (part two)
Chapter 26.5. PATENT TAX SYSTEM
“Article 346.43. General provisions
1. The patent taxation system is established by this Code, put into effect in accordance with this Code by the laws of the constituent entities of the Russian Federation and is applied in the territories of the specified constituent entities of the Russian Federation.
The patent taxation system is used by individual entrepreneurs along with other taxation regimes provided for by the legislation of the Russian Federation on taxes and fees.
2. The patent tax system is applied to the following types of business activities:
1) repair and sewing of clothing, fur and leather products, hats and textile haberdashery products, repair, sewing and knitting of knitwear;
2) repair, cleaning, painting and sewing shoes;
3) hairdressing and cosmetic services;
4) dry cleaning, dyeing and laundry services;
5) production and repair of metal haberdashery, keys, license plates, street signs;
6) repair and maintenance of household radio-electronic equipment, household machines and household appliances, watches, repair and manufacture of metal products;
7) furniture repair;
8) services of photo studios, photo and film laboratories;
9) maintenance and repair of motor vehicles and motor vehicles, machinery and equipment;
10) provision of motor transport services for the transportation of goods by road;
11) provision of motor transport services for the transportation of passengers by road;
12) repair of housing and other buildings;
13) services for installation, electrical, sanitary and welding works;
14) services for glazing balconies and loggias, cutting glass and mirrors, artistic glass processing;
15) services for training the population in courses and tutoring;
16) services for supervision and care of children and the sick;
17) services for receiving glassware and secondary raw materials, with the exception of scrap metal;
18) veterinary services;
19) leasing (renting) residential and non-residential premises, dachas, land plots owned by an individual entrepreneur by right of ownership;
20) production of folk arts and crafts;*
21) other production services (services for processing agricultural products and forest products, including grain grinding, grain peeling, oilseed processing, production and smoking of sausages, potato processing, processing of customer-supplied washed wool into knitted yarn, dressing of animal skins, combing wool, grooming of domestic animals, repair and production of cooper's utensils and pottery, protection of gardens, vegetable gardens and green spaces from pests and diseases; production of felted shoes; production of agricultural implements from the customer's material; engraving work on metal, glass, porcelain, wood, ceramics ; production and repair of wooden boats; repair of toys; repair of tourist equipment and inventory; services for plowing gardens and sawing firewood; repair and
manufacturing of spectacle optics; production and printing of business cards and invitation cards for family celebrations; bookbinding, stitching, edging, cardboard works; charging gas cartridges for siphons, replacing batteries in electronic watches and other devices);
22) production and restoration of carpets and rugs;
23) repair of jewelry, costume jewelry;
24) chasing and engraving of jewelry;
25) monophonic and stereophonic recording of speech, singing, instrumental performance of the customer on magnetic tape, CD, re-recording of musical and literary works on magnetic tape, CD;
26) residential cleaning and housekeeping services;
27) services for interior design of residential premises and decoration services;
28) conducting classes in physical culture and sports;
29) porter services at railway stations, bus stations, air terminals, airports, sea and river ports;
30) paid toilet services;
31) services of cooks for preparing dishes at home;
32) provision of services for the transportation of passengers by water transport;
33) provision of services for the transportation of goods by water transport;
34) services related to the sale of agricultural products (storage, sorting, drying, washing, packaging, packing and transportation);
35) services related to the maintenance of agricultural production (mechanized, agrochemical, reclamation, transport work);
36) services for green farming and decorative floriculture;
37) management of hunting and hunting;
38) engaging in medical activities or pharmaceutical activities by a person licensed for these types of activities;
39) carrying out private detective activities by a licensed person;
40) rental services;
41) excursion services;
42) ritual services;
43) funeral services;
44) services of street patrols, security guards, watchmen and watchmen;
45) retail trade carried out through facilities of a stationary retail chain with a sales floor area of no more than 50 square meters for each trade facility;
46) retail trade carried out through objects of a stationary trading network that do not have sales floors, as well as through objects of a non-stationary trading network;
47) public catering services provided through public catering facilities with an area of the customer service area of no more than 50 square meters for each public catering facility.”
4.OK 029-2007 (NACE Rev. 1.1). All-Russian Classifier of Types of Economic Activities
14 Mining of other minerals
14.11 Extraction of stone for monuments and construction
This grouping includes:
Open pit mining, primary processing,
sawing, crushing and grinding of marble, granite,
sandstone and other stones for construction,
internal and external cladding of buildings and structures,
production of artistic, decorative and
household products*
This group does not include:
Extraction of mineral raw materials for chemical production
and fertilizer production, see 14.30
Cutting, processing and finishing of building stone and
stone for monuments outside quarries, see 26.70
Subsection DD WOOD PROCESSING AND PRODUCTION OF WOOD PRODUCTS
20.51 Production of other wood products*
20.51.1 Manufacture of wooden instruments, cases and
tool handles, brush and broom handles, shoe
shoe lasts and stretchers
20.51.2 Production of wooden dining rooms and kitchens
accessories
20.51.3 Manufacture of wooden figurines and wooden ornaments,
mosaics and inlaid wood, boxes, cases
for jewelry or knives*
20.51.4 Production of wooden frames for paintings, photographs,
mirrors or similar items and other articles made of
20.52 Production of products from cork, straw and materials for
weaving
52.1 Retail trade in non-specialized stores
52.48.34 Retail trade in souvenirs, folk products
artistic crafts, objects of cult and
religious purposes, funeral supplies*
Souvenir products are a relatively new product for the Russian market. Even today, 30 years after the beginning of the development of private entrepreneurship in the Russian Federation , There are not so many Russian-made souvenirs on sale - no more than 25%. Everything else is goods from Europe and China. But it seems that buyers are not satisfied with this situation, since European products are very expensive, and Chinese ones do not stand up to any criticism in terms of quality. Until recently, active entrepreneurs tried to fill the niche of good souvenirs with handmade products (see,). But it is already clear that the Russian market cannot be filled with such products and we need to take our own production of souvenirs to a new level. And this is a good chance for small and medium-sized businesses.
How to organize a souvenir production business
If an entrepreneur intends to produce small batches of gift items at the start of the project and independently sell them through retail outlets on the market or in small souvenir shops, then registering an individual entrepreneur or LLC at this stage is not necessary.
But the release of large quantities of goods, contracts with legal entities (suppliers and distributors) and the opening of their own retail outlets is impossible without official registration of business.
The most convenient format for a gift workshop is individual entrepreneurship (IP). Within the framework of an individual entrepreneur, you can simultaneously engage in several types of activities. Useful to read.
OKVED codes suitable for the production of souvenirs in 2017 and 2018 depend on the materials with which the manufacturer will work and on the chosen direction. Examples include the following codes:
- 16.29.12 – “Production of wooden tableware and kitchen utensils”;
- 16.29.13 – “Production of wooden figurines and wooden decorations,<…>»;
- 32.13 – “Production of costume jewelry and similar goods”;
- 32.99.8 – “Production of folk arts and crafts”, etc.
An individual entrepreneur can organize a small one either in his apartment or in a private yard. But the best option for conducting business activities is renting production and office premises.
The World of Business website team recommends that all readers take the Lazy Investor Course, where you will learn how to put things in order in your personal finances and learn how to earn passive income. No enticements, only high-quality information from a practicing investor (from real estate to cryptocurrency). The first week of training is free! Registration for a free week of training
Equipment and materials
The cheapest equipment for the production of souvenirs is Chinese machines. But their quality does not suit many manufacturers, so today on the Russian market there are more and more offers from domestic companies that manufacture and sell equipment and materials for enterprises involved in the production of gift assortments.
The most popular equipment:
- engraver;
- pad printing and embossing machine;
- sublimation printer;
- heat press;
- carpentry machine.
The average cost of a set of equipment for the production of 5-6 types of gift products is from 50 to 100 thousand rubles. If you don’t have that kind of money at the start, you can consider purchasing used equipment.
The second important organizational point, without which a business will not work, is the search for suppliers of raw materials. Of course, purchasing blanks and raw materials from local stores or markets is very unprofitable.
A good solution for a novice entrepreneur is to establish business connections with material manufacturers and buy semi-finished products from them at low prices. Thus, having purchased a batch of white cups, an entrepreneur can, through additional processing, produce a series of original souvenirs.
What glass and ceramic souvenirs are in demand on the market?
For almost a decade now, consumer demand for themed tableware and interior decor items made of glass and ceramics has not fallen. Therefore, if an entrepreneur finds interesting ideas and is able to bring them to life at minimal cost, then he will definitely find his buyer.
The most interesting and popular ideas:
- glass sculptures with laser engraving;
- candle lamps;
- aromatic pots;
- gift personalized crystals;
- cups, plates, painted with acrylic paints.
Setting up the production of glass souvenirs is quite difficult. Equipment for such production can cost about 1 million rubles. After all, the technological process of manufacturing glass forms involves gluing, hardening, and processing the joints of the glass sheet. All this is done using modern, expensive equipment.
Companies that process glass mainly serve the decorative building materials market. And only a small segment of production is involved in the production of souvenirs.
It is much easier to create a ceramic workshop and produce ceramic souvenirs. The technology for processing clay is quite cheap, and purchasing equipment for a ceramic workshop will cost a businessman about 200 thousand rubles.
Gifts made of wood and plywood
A real Russian folk craft is the production of wooden souvenirs. The most popular goods are children's environmentally friendly toys, as well as imitation items of the cultural heritage of the Russian people and other nationalities.
But in order to produce such a product, you need to have truly golden hands, good material and patience. The minimum equipment required is:
- milling machine;
- a circular saw;
- drilling machine;
- carpenter's hand tool.
The purchase of such a kit will cost the entrepreneur approximately 300 thousand rubles. Used equipment can be found at half the price.
To set up the production of plywood souvenirs, you will need about 100 thousand rubles. Materials and equipment for this type of business are cheaper, but the range of products is limited. Since plywood quickly loses its shape, the main types of products made from this material are boxes, caskets, stands, themed medallions and magnets, as well as souvenir signs and identifiers.
Current costs and payback forecasts
If the start-up costs of an entrepreneur depend on the chosen type of activity, then the current costs for each small production are approximately the same:
- wages for three employees (about 100 thousand rubles);
- utilities (about 10 thousand rubles);
- taxes and fees (about 5 thousand rubles).
In total - about 120 thousand rubles.
The cost of the finished product can be approximately determined by the following formula: costs of materials, plus the same amount for labor, plus a markup percentage (about 20%).
The average profit of a small production is about 15% of the total turnover, and in order to earn 30 thousand rubles, an entrepreneur must sell goods worth at least 200 thousand rubles in a month.
Such revenue can be obtained from the sale of approximately 500 units of products in the average price category. From the above calculation it follows that an entrepreneur will have to sell 15 units of his goods per day, and in this case he will have a small, stable income.
Conclusion
Making souvenirs is an interesting and creative activity that can be developed into a promising business. But an entrepreneur must understand that he is entering a very dynamic market, where customer preferences can change almost every season. Therefore, all production processes must be thought out and organized in such a way as to respond in a timely manner to changes in consumer preferences and immediately put new ideas into action.