Is activity out of OKVED code a violation?

Russian Classifier of Economic Activities (OKVED) is a list of the types of economic activity under certain codes.

Companies-taxpayers choose their own types of activity and provide information about their codes (main and additional) to register authorities.

According to the new letter of The Federal Tax Service, assigning the code to the company’s activity does not mean ban for other types of activities. So, business activity without assigned code is not an unfounded tax enrichment.

The Federal Tax service explained that tax authorities should not check the validity of the indication of the taxpayer’s codes during its registration.

The Classifier is used by the Federal Tax Service for solving the tasks related with state statistical observation of the economic development.

Nevertheless, when a company carries out a new type of activity on an ongoing basis, it is necessary to include such data into the Classifier. Otherwise, the company may be fined.