Government Commission on Legislative Activities

Transportation of passengers by minibus

When the carrier establishes an unregulated tariff, in accordance with the Federal Law of July 13.

2015 N 220-FZ, does an enterprise, when carrying out activities for transporting passengers on urban and suburban routes, including providing preferential travel to certain categories of citizens, have the right to apply the VAT exemption under clause 7 of Art.

The Tax Code of the Russian Federation exempts from taxation the sale of services for the transportation of passengers by public urban passenger transport (with the exception of taxis, including minibuses), as well as by suburban transport, subject to a number of conditions. Article 19 of the Federal Law of November 8, 2007 N 259-FZ

“Charter of road transport and urban ground electric transport”

Regular transportation of passengers and baggage includes transportation with boarding and disembarking of passengers in any place not prohibited by traffic rules along the route of regular transportation.

Transportation with the pick-up and disembarkation of passengers in any place prohibited by traffic rules along the regular transport route is carried out in accordance with the schedules established for travel from the initial and final stopping points along the regular transport route.

Transporting passengers by minibus as a business

Here is a set of documents that you need to have on hand:

1. Confirmation of car registration in the traffic police.
2. Documents for the car (PTS, inspection certificates).
3. Certificate of registration of an individual entrepreneur or LLC and its charter, confirmation of tax registration.
4. Confirmation of the legal address of the enterprise and its bank details.
5. OSAGO for every car.
6. A complete set of driver documents (licence, work record, medical certificate).
7. Vehicle maintenance agreement.
8. Agreement for medical examinations of drivers before setting out on a route.
9. Extracts from unified state registers.
10. Agreement for renting a parking lot or garage.
11. Passport of the director of the enterprise.

We will describe below the procedure for obtaining a license to transport passengers in a minibus (standing and seated).

If the business is organized correctly, the route business for transporting passengers can quickly pay off and begin to generate income.

Efficiency of passenger transportation by minibus taxis (page 3 of 4)

9 11 20 18 9 22 Based on these data, graphs were constructed characterizing the work of minibus taxis.

This is explained by the fact that on long routes the shift ratio increases, that is, the number of passengers traveling in one place increases.

Figure 7 – Distribution curve of the number of planned stops Figure 8 – Distribution curve outside planned stops Figure 9 – Graph comparing message speed and technical speed on various routes Figure 10 – Graph comparing message speed and technical speed on various routes From Figure 9 it can be seen that message speed and technical speed are almost the same.

Rules for traveling in a minibus taxi

The frequency of technical inspection is once every 6 months. In addition, companies must check the condition of their vehicles before each work shift;

• a color scheme in the form of black squares arranged in a checkerboard pattern must be applied on one of the sides of the vehicle;
• An orange light must be installed on the roof of the car.

Some regional legislation imposes requirements on the color of a car used as a taxi.

In most regions, the car must be yellow. The interior of a passenger taxi must contain: Free legal advice:

1. detailed information about the tariffs used by the company to calculate the cost of the trip;
2. driver card indicating full name, driver's license number, contact phone number;
3. contact information of the company that provided the car

Source: https://advokatssr.ru/perevozka-passazhirov-marshrutnym-taksi-12148/

VAT rate 0%

The Tax Code in paragraph 1 of Article 164 defines the following types of transport services not subject to VAT:

1. transport and forwarding services for international transport by sea, river, air, road and railway transport, if the point of departure or delivery is not on the territory of the Russian Federation;
2. transportation of gas and unrefined oil to the Russian Federation or outside the Russian Federation;
3. implementation of the transit regime for the transportation of goods;
4. international passenger transportation with luggage;
5. until 2029, suburban passenger transportation by rail (trains) is not subject to VAT;
6. until 2029, long-distance rail transportation of passengers with luggage within the territory of the Russian Federation is exempt from VAT;
7. air service to the Republic of Crimea and Sevastopol.

Zero taxation outside the Russian Federation requires the taxpayer to provide relevant documents, including copies of contracts with the counterparty, shipping documents and customs declarations, within 180 days from the day the customs mark was placed in relation to the specified shipment.

In case of delay of 180 days, VAT is paid at the standard rate of 18%.

Taxes for individual entrepreneurs when opening their own taxi in 2019

To start a successful business, you first need to decide on the type of activity that will generate income. Passenger transportation is considered one of the most profitable ones. Almost all residents of our country use taxi and other transport services.

This is an indispensable way to solve the problem of getting to the right place on time, when your car breaks down, time is running out, or in other situations. But to start such a business, it is worth determining what tax for individual entrepreneurs in 2021 is due for taxi activities.

The first stage of the taxi business

To open a taxi business, you must obtain a license. This is the first step towards transporting passengers. A license must be issued for all cars that the individual entrepreneur plans to use for taxis. The issuance is carried out by the responsible government bodies, which may be called differently in each region.

You will also have to pay for a license in 2021 to operate a taxi in each region differently. The period for which this document-permit for motor transport services is issued is the same for everyone.

A license is issued for a minimum of 5 years. That is, those who just want to try what being a taxi driver is like will not be able to officially open an individual entrepreneur for transporting passengers for just a month or two.

To obtain a taxi license, you must provide:

Requirements for car and driver:

• car after technical inspection;
• The driver has held a license for at least 3 years before applying for a license.

After submitting a package of documents, the license is issued within 30 days.

What type of taxation can I choose?

An entrepreneur who transports passengers in a taxi service is the same individual entrepreneur for the tax authorities as all others, but only with a certain OKVED code (OK 029-2014. ed. 2), namely 49.32 with the decoding “Taxi activities”. That is why taxi drivers, in order to open a business, can choose their type of taxation.

According to tax legislation, individual entrepreneurs have the right to pay taxes according to the following systems:

• OSNO is the main one, which involves paying 13% of your personal income tax plus 18% of VAT to the country’s budget. This is the basic accrual and payment method, but it is considered the most labor-intensive in the accrual process, and you will also have to pay more.
• UTII is a single tax on imputed income. The amount to be paid when choosing such a taxation system depends on the number of seats in the transport used for transportation, which is registered to a given individual entrepreneur. At the same time, entrepreneurs can pay UTII by taxi not in all regions. Important: in 2018, UTII was extended until 2021.
• PSN is a tax payment system that operates on the basis of a purchased patent. It can become a profitable alternative to UTII in those regions where it is not available for transporting passengers. The amount of this tax, namely the cost of the patent, also depends on the number of taxi cars the individual entrepreneur has.
• The simplified tax system is a simplified tax payment system. The amount can be calculated according to two schemes at the entrepreneur’s choice and amount to either 6% of the amount of income or 15% of the difference between profits and expenses.

What type of taxation is most beneficial?

In order to choose the right tax system for an individual entrepreneur who in 2021 decided to open a business and will be engaged in transporting passengers by taxi, it is necessary not only to calculate how much he will pay to the state budget from his profits, but also to take into account the documentation for filling out and reporting to the tax authorities control.

OSNO is considered completely impractical for taxi driver entrepreneurs. In addition to income tax and VAT amounts, it is necessary to constantly record all financial transactions. That is, each income and expense will need to be confirmed accordingly. It is almost impossible to do this without accounting experience, which in turn will incur salary costs.

UTII is practiced by many individual entrepreneurs who transport passengers by taxi. But there are some restrictions on the possibility of switching to this type of tax payment:

1. not in all regions the economic activity code “Taxi activity” refers to those that have the right to switch to UTII;
2. Individual entrepreneurs who use no more than 20 vehicles to carry out their business activities can apply UTII.

The calculation of UTII is carried out in accordance with the norms of the Tax Code of the Russian Federation, Art. 346.27. The formula for finding out how much you need to pay is as follows:

Basic yield (Implied income)*number of seats*deflator coefficient*15%*adjustment coefficient, where

• the basic profitability for motor transport services is 6,000 rubles,
• a seat is a place for passengers to sit. Their number is established in the vehicle manufacturer’s technical passport or can be determined by the responsible state technical supervision authorities. For a taxi, 4 seats are considered.

The deflator coefficient for 2021 is 1.798. The adjustment coefficient is set in the region of registration of the individual entrepreneur and can be from 0.005 to 1.

That is, entrepreneurs who provide services for transporting passengers by taxi must pay from several rubles per month if the adjustment factor is at the lowest level. But at the same time, UTII also has its downsides:

• reporting is submitted quarterly;
• it is necessary to draw up all financial documents very carefully and competently, which is very difficult if you yourself are an entrepreneur and a driver at the same time;
• UTII is valid only until 2021.

Although for those who use hired workers, it is the single tax that is optimal in the taxation system.

PSN also has a number of advantages. But at the same time, how much to pay in this case also depends on the amount of transport that is used to conduct business.

The cost of a patent is calculated not just for one individual entrepreneur, but taking into account the possible profit for each machine.

In addition, if an entrepreneur uses hired employees, then under PSN there cannot be more than 15 people.

The most optimal for taxi driver entrepreneurs is the simplified tax system. This is due to its following advantages:

• You need to pay only 6% of income or 15% of the difference between profits and expenses; in this case, the entrepreneur himself chooses how much to pay;
• maintaining accounting records requires minimal effort and time;
• allowed for all individual entrepreneurs.

When comparing all tax payment systems, it is necessary to carefully consider all the pros and cons. If you have questions, it is better to seek advice from tax authorities so as not to lose later.

Do taxi drivers need CCT?

The legislation of the Russian Federation stipulates that individual entrepreneurs must use cash register systems in their work. But for entrepreneurs who transport passengers, work without it is allowed. Although this does not mean at all that there is no need to prepare documents when receiving money from a client. This must be taken into account for those who plan to open an individual entrepreneur.

An entrepreneur who provides passenger transportation services must provide passengers with strict reporting forms. There is no set form for taxi drivers yet. But there are mandatory details that must be present on the document:

• name, series and number of this form for payment for taxi services;
• client name;
• date of registration;
• service price;
• details of the authorized person from the individual entrepreneur.

The stamp can be placed using a taximeter, a device that carries out all the taxi driver’s calculations and can issue a receipt.

Responsibility for failure to comply with the requirements for issuing BSO is provided:

• deprivation of the right to apply preferential tax systems;
• a fine of 1,000 rubles is imposed on the driver;
• a fine of 10,000 rubles is imposed on individual entrepreneurs.

Therefore, it is better to follow all the rules so as not to reduce your income and not pay extra. In general, entrepreneurship in the field of passenger transportation is a fairly profitable business that can be pursued in 2021.

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Source: https://ipexperts.ru/biznes/idei/nalogi-dlya-ip-taksi.html

VAT rate 18%

The application of the standard value added tax rate is regulated by paragraph 3 of Article 164 of the Tax Code of the Russian Federation. It applies:

1. when a Russian carrier provides services in accordance with an agreement with a foreign company (in the event that the organization is not represented on the territory of the Russian Federation, and the destination of the transportation is located on the territory of the Russian Federation);
2. the standard rate must also be paid by a foreign carrier if it is not represented on the territory of the Russian Federation and provides services in accordance with an agreement with a Russian company. It is worth noting that in accordance with the procedure described by the letter of the Ministry of Finance of the Russian Federation dated December 29, 2012 No. 03-07-15/161, when providing intermediary services, VAT of 18% must be paid only on the remuneration amount.

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VAT. Benefits for transport companies

For a manufacturing company, it is important not only to produce high-quality products, but also to deliver the goods to the customer on time.

Delivery of cargo can be carried out using the manufacturer’s own transport or using an intermediary as a carrier.

For various reasons, not all manufacturers want to organize their own personal fleet of vehicles, however, the goods must be delivered to the customer, sometimes even outside the Russian Federation.

Therefore, the manufacturer of the goods enters into an agreement with a freight forwarding company, whose forces and transport will deliver the goods to the buyer.

Considering the demand for delivery services and the growing demand for transport services every year, the number of companies willing to provide them is also increasing.

How do freight forwarding companies work? With and without VAT

Tax inspectors monitor VAT accounting very strictly.

The law clearly defines what VAT rate for carriers should be recorded in tax records. The VAT rate on transport services depends on who the contractor is and where the services are provided geographically. The location of the manufacturer of the goods and the buyer of the cargo delivered by the transport company determines what VAT rate will be applied.

The competitiveness of a transport company largely depends on the announced price for the services it provides. The cost of such services also consists of, for example, the price of gasoline and technical inspection; expenses associated with vehicle repairs after possible accidents or the purchase of new vehicles.

So, on the one hand, transport companies have the cost of the service that they bill to the customer, and on the other hand, they have their own costs for organizing the delivery of goods to the address specified by the customer.

How to optimize VAT in a transport company? All these costs can be minimized by companies that transport goods when managers properly organize tax accounting.

How to pay less VAT on the provision of transport services? A competent accountant, of course, will advise where to get VAT from a transport company and tell you which transactions can be taken into account for VAT deductions in transport services.

And as a result, the price of services provided by a transport company can be reduced, which will allow it to increase its competitiveness.

From 0% to 18%

The Tax Code provides for different VAT rates for each category of transport services. Some carriers do not charge VAT at all.

The maximum rate of 18% is levied on the services of transport companies that operate only in Russia, and the services they provide do not fall into preferential categories.

VAT 10% is levied on services for the transportation of passengers and baggage by domestic airlines. The exception is routes to the Republic of Crimea, the city of Sevastopol and back.

By special order of the Government of the Russian Federation, a discount applies to these flights, and transportation services are subject to VAT at a rate of 0%.

From January 1, 2021, the Law also allows the application of a zero VAT rate for domestic air transportation of passengers and baggage in the Kaliningrad region.

A taxpayer who has applied a reduced VAT rate of 10% in a transaction must provide the tax office with all documents confirming his right to do so.

International transportation services are also subject to VAT at a zero rate. For the purpose of calculating VAT, these include the transportation of passengers outside the Russian Federation, as well as baggage and other cargo by all modes of transport, if the point of departure or delivery is located outside the Russian Federation.

For example, road transport is carried out by an Estonian carrier, VAT is not charged, since the transport is provided by a foreign company that is not registered for tax purposes in the Russian Federation, and the destination is located outside of Russia. In this case, the 0% VAT rate also applies to services accompanying the transportation of goods.

That is, there is no need to pay VAT for transportation services outside the Russian Federation. For the purpose of calculating VAT, transportation of passengers outside the Russian Federation is taxed at a rate of 0%.

Some passenger transportation services are also subject to a zero VAT rate. These include all travel to distant regions of the Russian Federation by public transport, as well as services for the delivery of cargo and people within the suburbs provided by rail.

Services for the transportation of passengers by urban public road transport are also not subject to VAT; accordingly, the question cannot arise of how to show revenue from urban transportation in the VAT return.

If a taxpayer exercises his right to a 0% VAT rate, he must provide inspectors with justification for his actions, otherwise he will have to pay the standard 18% to the treasury.

The question arises: if the income received from the transportation of passengers is not subject to VAT, how to reimburse VAT for this activity, where to get the input VAT of the transport company?

It is important to remember that transport services will not help you bypass VAT within the framework of the Law!

Compensation for lost income

The state allocates compensation from the budget, which covers the carrier part of the costs associated with the provision of services for the transportation of preferential categories of passengers by urban public road transport.

Is compensation for lost income subject to taxes and what is the percentage of VAT? Transportation of passengers by road is not subject to VAT, with the exception of taxis, including minibuses.

Transportation of passengers by minibus is subject to VAT at a rate of 18%.

Purchase of transport

Unfortunately, transactions for the purchase of transport from a private individual cannot be considered as minimizing costs. But such cases occur in the activities of transport companies. The fact is that in the case of such a transaction, transport workers do not have “input VAT”, since an individual without the formation of an individual entrepreneur is not a VAT payer.

Minimizing costs when purchasing a vehicle from an individual will only work if the seller suddenly offers a reduced price, but VAT in this case does not play any role in cost optimization.

In this case, the seller does not provide either an invoice or a cash receipt, and the transport company cannot accept VAT as a deduction.

Technical inspection

For safe cargo transportation activities, the transport company is obliged to ensure that the transport passes state technical inspection.

Services for checking the technical condition of vehicles are provided by state-accredited organizations.

Inspection services are not subject to VAT, so the transport company in this case does not acquire the right to deduct VAT.

Insurance compensation for road accidents

A traffic accident is an unpleasant event for drivers of all vehicles involved.

Often in an accident it is possible to determine the culprit whose actions caused the damage to the vehicle.

After the procedures for registration and investigation of an accident at the State Traffic Safety Inspectorate, the vehicle is sent to a workshop, which estimates how much it will cost to restore the vehicle, but the insurance company recognizes the damage as a smaller amount, then the missing amount is recovered from the culprit in court.

The amount of compensation received from an insurance company under a voluntary insurance contract is not subject to VAT, since it is not considered payment for a product or service. Thus, there will be no need to pay VAT on the amount of insurance compensation received from the insurance company.

In the event of complete destruction of the vehicle due to an accident, the transport company writes off the damaged vehicle in favor of the insurance company, and such transfer is recognized as a sale.

According to the law, when a vehicle is written off, the VAT amount must be restored.

But judicial practice shows that a transport company has every reason not to restore VAT in the event of a vehicle being completely destroyed and written off from the VAT balance sheet.

Buying gasoline

Not the least expensive item in a transport company is the cost of fuel. When purchasing gasoline or diesel fuel at gas stations, the driver of the transport company receives a cash receipt confirming payment for the fuel.

In order for an organization to deduct VAT, it must be presented with a document regarding the transaction that separately identifies and indicates the amount of VAT on the amount paid.

The usual confirmation of a transaction in accounting is an invoice, but if one is not provided, then such confirmation is recognized as a strict reporting form, for example, a cash receipt. The main condition is the amount of VAT allocated in the check.

Until January 1, 2018, retail organizations were not required to indicate the allocated VAT amount on checks. Since the beginning of this year, a corresponding amendment to the Law has come into force. Now every check that a consumer receives contains information about the amount of VAT.

In cash receipts from gas stations, VAT is indicated on a separate line, which means that such a receipt gives the taxpayer the right to a refund of input VAT from the budget.

Organization of parking and access roads

Some transport companies maintain a fleet of numerous vehicles. For transport parking, transport company managers organize specialized parking. For unobstructed access to the parking lot, builders lay asphalted or concreted access roads.

Tax authorities accept from transport companies justification for the need for such expensive construction projects, since the arrangement of parking is directly related to their activities and will increase the company’s profit (safety of transport, elimination of costs for paying for paid parking to third parties).

The exception is objects for which budget funds were raised.

If the work on organizing parking and access roads was carried out by specialized organizations using OSNO, the transport company has the right to claim a VAT deduction from the cost of the services they provide. Of course, if the reporting documentation is provided and executed by the builders in accordance with the necessary requirements.

Conclusion

The law clearly establishes all the criteria by which VAT is calculated for transport services. The carrier does not bear any tax risks associated with the application of an incorrect VAT rate if it strictly complies with the requirements of the Law for processing transactions.

In today's market conditions, dealing with transaction partners who turned out to be unscrupulous taxpayers has become the reason not only for receiving demands from the tax office, but also for additional inspections by inspectors that distract from business affairs. It is costly to distract the company’s own employees to prepare letters of justification because of a negligent partner who has not paid VAT.

Therefore, when choosing a transport company, the product manufacturer seeks to cooperate with those market representatives who, knowing the rights to a preferential VAT rate, comply with the legal requirements for tax accounting of transactions related to the delivery of goods.

Source: https://NalogObzor.info/publ/stati_iz_tematicheskikh_zhurnalov/slozhnosti_ischislenija_nds_u_transportnykh_kompanij/71-1-0-2081

When does the 20% VAT rate apply on transport services?

In other cases, a VAT rate of 20% must be applied to transportation services (clause 3 of Article 164 of the Tax Code of the Russian Federation).

If a Russian company provides transport services to a foreign company that does not have a permanent representative office in the Russian Federation, and the point of departure and destination are located on the territory of Russia, VAT on transport services will be charged at a rate of 20% (clause 4.1, clause 1, article 148 of the Tax Code RF).

A Russian organization (IP) can also act as a VAT tax agent for a foreign company, which becomes the basis for paying tax at a rate of 20%. This situation occurs when transportation across the territory of Russia for a Russian customer is carried out by a foreign company that does not have a permanent representative office in the Russian Federation (Articles 24, 161 of the Tax Code of the Russian Federation).

Transporting passengers by minibus: rules, starting your own business, license

City drive is a permanent phenomenon. People will always go somewhere. And among all types of road transport, minibuses are of greatest interest for their movements.

More democratic than taxis and more maneuverable than large city buses. And the start-up investment required is small compared to other types of transport business. And today we will tell you what you need to start your own business in the form of route transportation.

How to start transportation in 2019

Transporting passengers is an official business activity and to start you must first register in one of the following capacities:

• Individual entrepreneur.
• Limited Liability Company.

After this, you can begin to apply for and obtain a permit - a license for route bus transportation, which we will describe below on how to obtain it.

This video will tell you what a minibus is and how to organize transportation using such transport:

Required documents

To obtain a license to transport passengers of more than eight people, you must contact the branch of the Federal Transport Service. Here is a set of documents that you need to have on hand:

• Certificate of registration of an individual entrepreneur or LLC and its charter, confirmation of tax registration.
• Extracts from unified state registers.
• Confirmation of the legal address of the enterprise and its bank details.
• Agreement for renting a parking lot or garage.
• Vehicle maintenance agreement.
• Agreement for medical examinations of drivers before setting out on a route.
• Passport of the director of the enterprise.
• A complete set of driver documents (licence, work record, medical certificate).
• Confirmation of car registration in the traffic police.
• OSAGO for every car.
• Documents for the car (PTS, inspection certificates).

We will describe below the procedure for obtaining a license to transport passengers in a minibus (standing and seated).

Procedure

If the business is organized correctly, the route business for transporting passengers can quickly pay off and begin to generate income. In addition to the set of documents to start route transportation, you will need:

• Minibuses.
• Drivers.
• Premises for garage and office.

But first things first:

1. The first thing you need to worry about is choosing a route. Here you can wedge yourself into the existing passenger flow and fight with competitors, or try to master a new one in the fight against bureaucracy. In general, it is impossible to do without careful calculation and some risk.
2. Then calculate the size of the required investments and find their sources.
3. Selection of cars. You can choose between cheap and easy to repair and maintain, but quickly deteriorate “Gazelles” and more expensive and reliable imported models.
4. Registration of compulsory insurance and organization of maintenance and repair of minibuses.
5. Office and garage rental.
6. Recruitment. You will need: two drivers per minibus, a dispatcher, an accountant and a mechanic. This is the required minimum.
7. After this, you can register the company.
8. And the last stage is obtaining a license using a ready-made set of documents.

Next, we will tell you about the rules for passenger transportation of children and adults by shuttle buses (taxi).

This video will tell you how negligent minibus drivers are punished in St. Petersburg:

Rules for transporting passengers in a minibus in 2019

To ensure the safety of passengers, it is necessary to strictly follow the transportation rules approved by government decree. We can recall the most important of them:

• Minibuses stop for boarding or disembarking passengers at places designated as stops or at the request of citizens, if this does not contradict road rules.
• The driver of the minibus is obliged to comply with traffic rules, follow strictly the established route, and board and disembark passengers.
• It is prohibited to carry more than the established number of passengers.
• It is prohibited to drive the minibus with the doors not tightly closed.
• It is prohibited to drive a car to a driver who is not indicated on the route sheet.
• The fare is set on the basis of approved tariffs.
• The minibus driver accepts payment and issues tickets.
• The driver is obliged to monitor the technical condition of his car and keep it clean.

Below you will find an itinerary form for transporting children, which you can also download.

Route sheet for transporting children (form)

route sheet for transportation of children - 1 route sheet for transportation of children - 2

Cost part in 2019

Starting a route business is an expensive business. To start, you will need large investments, the amount of which, of course, will depend on the scale of the undertaking. That is, from the initial number of cars planned to enter the route. But still, the cost structure will be approximately the same.

So, in descending order:

• Buying minibuses. This will be the biggest expense, even if you choose the economy option with the Gazelles. It can be significantly reduced only by renting a car.
• Salary for employees. And if drivers receive interest from trips, then service personnel (dispatch service, accounting, mechanics) must be paid even on bad days.
• Payment for insurance.
• Maintenance and repair costs.
• Payment for garage (parking) and office rent.

Well, and the cost of fuel, which can be reduced by switching to gas.