I plan to sell motor oil from my company. Retail trade of automobile oils. Bottled oil trade: assessing the attractiveness of the business
Dear Igor! I have already answered your question. If we are talking about motor oils, then this is UTII, and if we are talking about MOTOR oils, then this is an excise tax, but only when produced and sold by the manufacturer itself. In my opinion, you should be guided by Chapter 26 of the Tax Code of the Russian Federation and apply UTII.
Tax Code of the Russian Federation
Article 181. Excise goods
1. The following are recognized as excisable goods:
1) ethyl alcohol from all types of raw materials, with the exception of cognac alcohol;
For the purposes of this chapter, the following goods are not considered excisable goods:
medicinal, therapeutic and prophylactic, diagnostic products that have passed state registration with the authorized federal executive body and included in the State Register of Medicines and Medical Products, medicinal, therapeutic and prophylactic products (including homeopathic drugs), manufactured by pharmacies according to individual recipes and requirements medical organizations, poured into containers in accordance with the requirements of state standards of medicines (pharmacopoeial monographs), approved by the authorized federal executive body;
veterinary drugs that have passed state registration with the authorized federal executive body and are included in the State Register of Registered Veterinary Drugs developed for use in animal husbandry on the territory of the Russian Federation, bottled in containers of no more than 100 ml;
perfumery and cosmetic products that have passed state registration with the authorized federal executive authorities, bottled in containers of no more than 100 ml with a volume fraction of ethyl alcohol up to 80 percent inclusive and (or) perfumery and cosmetic products with a volume fraction of ethyl alcohol up to 90 percent inclusive, if available on a spray bottle, poured into containers of no more than 100 ml;
wastes subject to further processing and (or) use for technical purposes, generated during the production of ethyl alcohol from food raw materials, vodka, liqueurs, complying with regulatory documentation approved (agreed upon) by the federal executive body;
3) alcoholic products (drinking alcohol, vodka, liquor, cognac, wine and other food products with a volume fraction of ethyl alcohol of more than 1.5 percent, with the exception of wine materials);
5) tobacco products;
6) passenger cars and motorcycles with an engine power exceeding 112.5 kW (150 hp);
7) motor gasoline;
8) diesel fuel;
9) motor oils for diesel and (or) carburetor (injection) engines;
10) straight-run gasoline. For the purposes of this chapter, straight-run gasoline refers to gasoline fractions obtained from the refining of oil, gas condensate, associated petroleum gas, natural gas, oil shale, coal and other raw materials, as well as products of their processing, with the exception of motor gasoline and petrochemical products.
For the purposes of this article, the gasoline fraction is a mixture of hydrocarbons boiling in the temperature range from 30 to 215 ° C at an atmospheric pressure of 760 millimeters of mercury.
Article 182. Object of taxation
1. The following transactions are recognized as the object of taxation:
1) sale on the territory of the Russian Federation by persons of excisable goods produced by them, including the sale of pledged items and the transfer of excisable goods under an agreement on the provision of compensation or novation.
For the purposes of this chapter, the transfer of ownership rights to excisable goods by one person to another person on a compensated and (or) gratuitous basis, as well as their use for payment in kind, are recognized as the sale of excisable goods;
6) sale by persons of confiscated and (or) ownerless excisable goods, excisable goods, which were refused in favor of the state and which are subject to circulation to the state and (or ) municipal property;
7) transfer on the territory of the Russian Federation by persons of excisable goods produced by them from customer-supplied raw materials (materials) to the owner of the specified raw materials (materials) or other persons, including receipt of the specified excisable goods into ownership in payment for services for the production of excisable goods from customer-supplied raw materials (materials) );
8) transfer within the structure of the organization of produced excisable goods for further production of non-excisable goods, with the exception of the transfer of produced straight-run gasoline for further production of petrochemical products within the structure of an organization that has a certificate of registration of a person carrying out transactions with straight-run gasoline, and (or) transfer of produced denatured ethyl alcohol for the production of non-alcohol-containing products within the structure of an organization that has a certificate of registration of an organization performing operations with denatured ethyl alcohol;
9) transfer on the territory of the Russian Federation by persons of excisable goods produced by them for their own needs;
10) transfer on the territory of the Russian Federation by persons of excisable goods produced by them to the authorized (share) capital of organizations, mutual funds of cooperatives, as well as as a contribution under a simple partnership agreement (agreement on joint activities);
11) transfer on the territory of the Russian Federation by an organization (business company or partnership) of excisable goods produced by it to its participant (his legal successor or heir) upon his exit (departure) from the organization (business company or partnership), as well as the transfer of excisable goods produced within the framework of a simple partnership agreement (agreement on joint activities), to a participant (his legal successor or heir) of the specified agreement when allocating his share from the property that is in common ownership of the parties to the agreement, or the division of such property;
12) transfer of produced excisable goods for processing on a toll basis;
13) import of excisable goods into the customs territory of the Russian Federation;
20) receipt (receipt) of denatured ethyl alcohol by an organization that has a certificate for the production of non-alcohol-containing products.
For the purposes of this chapter, the receipt of denatured ethyl alcohol is the acquisition of denatured ethyl alcohol into ownership.
21) receipt of straight-run gasoline by an organization that has a certificate for processing straight-run gasoline.
For the purposes of this chapter, the receipt of straight-run gasoline is the acquisition of straight-run gasoline as a property.
3. For the purposes of this chapter, the bottling of alcoholic beverages and beer, carried out as part of the overall process of production of these goods in accordance with the requirements of state standards and (or) other regulatory and technical documentation, which regulate the process of production of these goods and are approved by authorized federal bodies, is equated to production executive power, as well as any types of mixing of goods in places of their storage and sale (with the exception of public catering organizations), as a result of which excisable goods are obtained.
4. When an organization is reorganized, the rights and obligations to pay excise tax pass to its legal successor.
Article 346.12. Taxpayers
1. Taxpayers are organizations and individual entrepreneurs that have switched to a simplified taxation system and apply it in the manner established by this chapter.
2. An organization has the right to switch to a simplified taxation system if, based on the results of nine months of the year in which the organization submits an application to switch to a simplified taxation system, income determined in accordance with Article 248 of this Code does not exceed 15 million rubles.
The value of the maximum amount of income of an organization specified in paragraph one of this paragraph, limiting the right of the organization to switch to a simplified taxation system, is subject to indexation by a deflator coefficient established annually for each subsequent calendar year and taking into account changes in consumer prices for goods (work, services) in the Russian Federation for the previous calendar year, as well as the deflator coefficients that were applied in accordance with this paragraph earlier. The deflator coefficient is determined and subject to official publication in the manner established by the Government of the Russian Federation.
3. The following are not entitled to apply the simplified taxation system:
1) organizations with branches and (or) representative offices;
3) insurers;
4) non-state pension funds;
5) investment funds;
6) professional participants in the securities market;
7) pawnshops;
8) organizations and individual entrepreneurs engaged in the production of excisable goods, as well as the extraction and sale of minerals, with the exception of common minerals;
9) organizations and individual entrepreneurs involved in the gambling business;
10) notaries engaged in private practice, lawyers who have established law offices, as well as other forms of legal entities;
11) organizations that are parties to production sharing agreements;
13) organizations and individual entrepreneurs transferred to the tax system for agricultural producers (unified agricultural tax) in accordance with Chapter 26.1 of this Code;
14) organizations in which the share of participation of other organizations is more than 25 percent. This restriction does not apply to organizations whose authorized capital consists entirely of contributions from public organizations of disabled people, if the average number of disabled people among their employees is at least 50 percent, and their share in the wage fund is at least 25 percent, to non-profit organizations, including including consumer cooperation organizations operating in accordance with the Law of the Russian Federation of June 19, 1992 N 3085-I "On consumer cooperation (consumer societies, their unions) in the Russian Federation", as well as business companies, the only founders of which are consumer societies and their unions operating in accordance with this Law;
15) organizations and individual entrepreneurs whose average number of employees for the tax (reporting) period, determined in the manner established by the federal executive body authorized in the field of statistics, exceeds 100 people;
16) organizations whose residual value of fixed assets and intangible assets, determined in accordance with the legislation of the Russian Federation on accounting, exceeds 100 million rubles. For the purposes of this subclause, fixed assets and intangible assets that are subject to depreciation and are recognized as depreciable property are taken into account in accordance with Chapter 25 of this Code;
17) budgetary institutions;
18) foreign organizations with branches, representative offices and other separate divisions on the territory of the Russian Federation.
4. Organizations and individual entrepreneurs transferred in accordance with Chapter 26.3 of this Code to pay a single tax on imputed income for certain types of activities for one or more types of business activities, have the right to apply a simplified taxation system in relation to other types of business activities carried out by them. At the same time, restrictions on the number of employees and the value of fixed assets and intangible assets established by this chapter in relation to such organizations and individual entrepreneurs are determined based on all types of activities they carry out.
- Business attractiveness
- Selecting a room
- Recruitment
- Step-by-step plan for opening a store selling motor oil in bulk
- How much can you earn selling motor oil?
- What equipment to choose for a store selling bottled motor oil
- Do I need a permit to open a store selling bottled motor oil?
There is unprecedented competition in retail trade today; it is already difficult to find a product that is not represented in your city in sufficient quantities. Motor oil is no exception in this sense. It is sold everywhere - in stores, service stations, service centers, even on the roads. However, today a new format for trading such goods has been opened - bottled motor oil. Car owners immediately found benefits from purchasing such a product. This gives you both a better price and proper quality. And most importantly, stores specializing in the sale of bottled motor oil offer free replacement, thereby taking the lion's share of customers from the retail motor oil market in their city...
Business attractiveness
Retail trade in bottled motor oil in our country is a very promising business. Judge for yourself. According to some data, in Europe, about 80% of motor oils are bought by car owners directly at service centers, where they have it changed. Whereas in Russia everything is exactly the opposite. Only 10% of car owners buy oil at service centers, the remaining 90% take motor oil in cans and change it themselves. These are the kind of drivers we have, there’s nothing to be done, they trust only themselves.
Another positive aspect is the increase in the number of cars. Every year in our country, if you don’t lie, the vehicle fleet grows by 5-10%! That is, there are more and more potential clients. Everyone who is not too lazy gets behind the wheel. More and more women are joining the ranks of drivers.
Yes, by the way, women are the gold mine in this matter. I'll explain why. Stores that sell bottled motor oil often offer a free service for changing motor oil and filter if these components are purchased at this store. This is a very good marketing ploy, since 99% of women are not able to change the oil on their own (they won’t even unscrew the filter). Therefore, they will gladly go to such a store and become its loyal customers, the main thing is to lure them in before their closest competitor does.
And let me tell you, there are more and more competitors. Almost every town with a more or less normal population has shops selling bottled motor oil from barrels. Now they are actively skimming the cream while the market is not yet overcrowded.
Another pleasant fact is that the markup on bulk motor oil reaches 100 percent or more, especially on inexpensive oils. Today there are few retail goods on which such percentages can be marked up. Well, do you want to open a similar store in your city? Let's start with the premises for starting a business.
Selecting a room
Barrels with bulk motor oil take up a lot of space, so you will have to find a room with an area of 20-30 m2. Plus, you need a small warehouse of 10-15m2. One good fact is that this is not a children’s toy store and it’s clearly not worth investing in design here. Some do without repairs at all. Car owners are not whimsical people and will forgive you any shortcomings in the arrangement of the store, as long as they are not offended by the price. Renting such an area will cost, depending on the region, from 15,000 rubles per month.
Geographic location is also not particularly important. This could be a roadway in the city, or even a residential area. Believe me, the client will find you everywhere if you invest even a little in advertising and promotion of your outlet.
Yes, you will also have to find a room for a free oil change and a couple of “labor hands” (if you plan to provide such a service). A regular garage may be suitable for this.
How much money do you need to invest to open a store selling bottled motor oil?
How much money do you need to start a business? Let's do the math. The first and main thing that should be in the store is barrels of bottled motor oil. We need a good assortment, at least 7-10 items, from expensive (elite oils) to cheap options. Motor oil from Lukoil in a 216-liter barrel at a wholesale price will cost 14,200 rubles. That is, one liter wholesale will cost about 65 rubles. Gazpromneft oil is even cheaper - 10,300 rubles per barrel of 216 liters. A more expensive option, ELF Evolution oil, will cost 40,000 rubles per barrel of 216 liters or 185 rubles per liter. The prices for Castrol, Shell helix and Mobil are approximately the same.
So we buy:
- 5 barrels of inexpensive oil ~ 70,000 rubles;
- 5 barrels of expensive oil ~ 200,000 rubles.
The total is 270,000 rubles, which we spend on buying bottled oil. To begin with, this will be “behind the scenes.” Next, to expand the range, we must buy regular oil in cans of 2, 3-5 liters. Because there will be clients who won’t want to take “draughts.” We are a specialized store and have to buy assortment! This will cost another 50,000 rubles.
Then we must purchase related products, those that can be purchased along with the oil: flushing oil, brake fluid, antifreeze, additives, auto chemicals, filters, spark plugs, etc. Trading such goods can significantly increase the store's turnover. The purchase of related products will cost at least 100 thousand rubles.
Thus, according to our calculations, it will be necessary to allocate at least 420 thousand rubles to create an assortment of goods. But that's not all the costs. We need display cases for displaying goods - another plus 20 thousand rubles, well, and perhaps minor cosmetic repairs to the store and other expenses - 30,000 rubles. That is, to open a store you will need to allocate about 500 thousand rubles.
In addition, starting costs can be reduced by purchasing motor oil for sale. There are companies that are ready to give away oil with a deferred payment for several months or even until the moment of sale. It’s up to you to decide, but starting this way can be two or three times cheaper!
Which OKVED code to indicate when registering a business selling motor oil in bottling
To trade in motor oil, it is enough to register a regular individual entrepreneur with the local tax service. This case costs 800 rubles in state duty and takes 5 working days from the date of submitting documents for registration to the tax office. There will be no problems with this. When filling out the application, indicate OKVED 50.50 “Retail trade in motor fuel.”
Which taxation system to choose for a store?
This activity is not subject to licensing, which is good news. The only subtle point is that motor oil is an excisable product, so the use of UTII (imputed tax) is not allowed. And this is the most favorable special taxation regime for retail facilities. Therefore, you will have to use a different taxation system - the simplified taxation system, or in common parlance “simplified taxation”. You will have the choice of calculating tax at either a rate of 6% of revenue or 15% of profit. You will have to install a cash register in the store and register it with the Federal Tax Service. However, like UTII, the simplified tax system exempts from payment of income tax, VAT and property tax of the organization.
Recruitment
You will have to “sweat a little” to find adequate sellers for the store. Not only do you need someone with sales experience, but you also need a salesperson who understands cars. It is very important that he can speak the same language with customers. Not to mention knowledge of the motor oil market, the popularity of certain motor oils among car owners, etc. This is not even discussed. A lot of customers come to such a store for practical advice, for consultation, and even for a heart-to-heart conversation, like: “I filled it up with brand N oil, and a month later my engine seized up... well, that’s okay, it happens. Recommend something reliable for my ten..."
Ultimately, it is the seller who will make money for your store. Try to motivate the employee as much as possible. Don’t skimp on your salary; give him a small salary, but a good percentage of his daily earnings.
I want to open a store (individual entrepreneur without employees) selling auto parts and motor oils. I decided to use UTII for the area of technical specifications (for auto parts) + simplified tax system for income (for motor oils). According to the new law, I will install an online cash register with a fiscal drive. The store will have only one sales department (cash desk). When selling motor oils, I will run a receipt through the cash register, and when selling spare parts, only through the program and issue a sales receipt. Therefore, the following questions arose: 1. Is it even possible to work like this? 2. Should KUDiR record only income from the sale of oils? 3. Do I need to keep any other reports? Thank you very much in advance!
Maxim Pravdin
When trading such similar goods, it is necessary to combine UTII and the simplified tax system only if some of your clients are legal entities. For them, selling on UTII is not allowed. If the clients are only individuals, then there is no point in combining modes. You need to choose one with minimal load. You can calculate UTII for yourself using our calculator. Compare this amount with the estimated tax on simplified tax system Income (6% of revenue).
An additional advantage of UTII is that until July 1, 2018, the cash register does not need to be installed. If you require an individual calculation of your tax burden, you can get it here. The service is free.
Maxim Pravdin
Yes, indeed, when answering the question, they did not take into account that motor oil is an excisable product and cannot be sold on UTII. You are right, in your case you will have to combine the two modes if you consider this beneficial for yourself.
It’s possible to work this way (i.e., combine trade in oils on the simplified tax system and spare parts on UTII in one area). In one of the letters of the Ministry of Finance (dated February 24, 2011 N 03-11-11/43) a similar question was considered and the following answer was given: “In this regard, when carrying out business activities in the field of retail trade on the same area of the trading floor auto parts, subject to a single tax on imputed income, and business activities for the sale of motor oils (excise goods), taxation of which is carried out within the framework of a simplified taxation system, when calculating the amount of a single tax on imputed income, the total area of the sales floor should be taken into account." That is, you will have to pay UTII tax on the area of the hall, although you will only sell spare parts in this mode.
As for reporting, according to UTII you simply submit a quarterly declaration based on the area of the store. No other documents are kept to confirm income in this mode. You enter only income from the sale of oils into KUDiR, and reflect them in your declaration.
In addition, due to separate accounting of UTII and simplified tax system, you need to develop and approve an accounting policy
The organization is engaged in vehicle repairs. Applies UTII. The organization also deals with the replacement of motor oil, including its sale. A new OKVED 50.5 “Retail trade in motor fuel” is being opened. Can an organization apply the simplified tax system for a newly opened type of activity, but leave the repair of vehicles to UTII? From what time can an organization begin to apply the simplified tax system for a new type of activity? Can an organization not use cash registers, but issue BSO (the service is provided only to individuals)
Tax legislation establishes that motor oils are excisable goods. Accordingly, the sale of motor oil must be taxed under the general taxation regime or the simplified tax system; therefore, an organization selling motor oil must necessarily use cash register equipment.
The rationale for this position is given below in the materials of the Glavbukh System vip version
1. letter of the Ministry of Finance of Russia dated April 23, 2010 No. 03-11-11/112
“Question: An individual entrepreneur asks to consider the issue of paying double tax. The individual entrepreneur is engaged in the trade of auto parts (pavilion) and pays a single tax on imputed income from the total area of the pavilion. Also, the individual entrepreneur has to pay another tax, simplified, on the sale of motor oils, which he cannot exclude from the assortment in his store, since the consumer will suffer. The tax authorities explained that motor oils do not qualify for the single tax and therefore a simplified tax must be paid. Couldn't it really be possible to make an exception for such small car shops that sell motor oils at retail in small quantities?
The Department of Tax and Customs Tariff Policy has reviewed your letter received from the Federal Tax Service of Russia and reports the following on the issues outlined in it.
In accordance with Article 346_26 of the Tax Code of the Russian Federation (hereinafter referred to as the Code), the taxation system in the form of a single tax on imputed income for certain types of activities can be applied by decisions of representative bodies of municipal districts, city districts, legislative (representative) government bodies of federal cities of Moscow and St. Petersburg in relation to the types of business activities established by paragraph 2 of Article 346_26 of the Code.
At the same time, please note that paragraph 2 of Article 346_26 of the Code contains an exhaustive list of types of business activities in respect of which the taxation system in the form of a single tax on imputed income can be applied.
Entrepreneurial activity in the field of retail trade, in accordance with paragraph 2 of Article 346_26 of the Code, is subject to transfer to the taxation system in the form of a single tax on imputed income.
At the same time, according to Article 346_27 of the Code, retail trade does not include, in particular, the sale of excisable goods specified in subparagraphs 6-10 of paragraph 1 of Article 181 of the Code.
Subparagraph 9 of paragraph 1 of Article 181 of the Code establishes that motor oils are excisable goods.
Thus, the Code does not provide any grounds for transferring entrepreneurial activity in the retail sale of motor oils to the taxation system in the form of a single tax on imputed income.
Accordingly, the specified business activity must be taxed under the general taxation regime or can be transferred to a simplified taxation system, subject to the provisions of Chapter 26_2 of the Code.”*
This statement fully applies to motor oil, which is sold everywhere: in stores and simply at street stands, at gas stations and service centers.
However, now trade in such products has received a new format, namely sales of motor oil (motor oil) for bottling. Clients immediately saw the benefits of such an acquisition. They consist not only in an attractive price and decent quality of products, but also in free oil change options, which is provided by retail outlets whose specialization is the sale of bottling oil.
Bottled oil trade: assessing the attractiveness of the business
In Russian realities, trade in bottling motor oils is considered a rather promising area. As a comparison, you can look at Western countries. There, about 80% of motor oils are purchased by car owners at branded service centers, where they are immediately replaced. In our country, the situation is the opposite: only 10% of car owners buy and change motor oil at service centers, while the remaining 90% buy it in cans and then change it themselves.
It is also worth noting that the markup on motor oil, when sold in bulk, can be 100% or higher, especially for oils of inexpensive brands. Agree that there are now quite a few products whose retail sale allows for such markups.
Of course, another positive point is the constant increase in the total number of cars (according to statistics, by 5-10% annually). This greatly increases the number of potential clients and many of them are women. It is women who are the gold mine in this business, since outlets that sell bottled motor oil quite often offer customers who buy their products a free oil and filter change in their car. This marketing ploy is very successful, because most women are simply not able to make such a replacement on their own. So it turns out that car enthusiasts will be happy to come to your store, and the main thing here is to attract their attention before a competing company does.
Regarding competitors: there are more of them in this business every year and in almost every city there are already stores that specialize in selling motor oil for bottling from barrels. However, it is too early to say that the market in this area is overcrowded.
Business premises
The minimum area of the room must be 25-30 m², since oil barrels take up quite a lot of space. You will also need a warehouse (area from 10-15 m²). Depending on the region, renting a suitable premises will cost from 15 thousand rubles per month.
However, you should not invest heavily in interior design. It is enough to carry out minor cosmetic work to make the store look neat, although some merchants do without any repairs at all.
The location of such a retail outlet is not of fundamental importance. You can stay either in close proximity to the road or in a residential area. The consumer will be able to find you on their own; all you need to do is spend a little money on advertising your future store.
Additionally, you should find a room where you will carry out free replacement of the oil purchased from you and a technician who will do this. For this purpose, you can try going to a regular garage.
Amount of required investment
For the normal functioning of the store, you will need to purchase motor oil in barrels (7-10 varieties), including both expensive and affordable brands. It is better to start by purchasing 5 barrels of inexpensive oil (total cost 70 thousand rubles) and 5 expensive ones (total cost 200 thousand rubles).
To expand the offered range, you should also purchase standard cans of motor oil, since customers will come who want to purchase just that. You will have to spend about 50 thousand rubles on this.
An additional cost item will be the purchase of related products (filters, flushing oils, brake fluid, spark plugs, antifreeze, additives and other auto chemicals). About 100 thousand rubles will be spent on this, but the presence of such goods can significantly increase the turnover of a retail outlet.
Consequently, it will take about 420 thousand rubles to create a decent assortment line for the store. To the main costs, you need to add the cost of retail equipment (about 20 thousand rubles) and expenses for carrying out (if necessary) cosmetic repairs in the premises (30 thousand rubles).
Thus, the total cost of opening a store will be about 500 thousand rubles. This amount can be significantly reduced if you can buy motor oils for sale or with deferred payment.
Required Documentation
To trade in motor oil, you must open an individual entrepreneur (800 rubles and 5 working days) indicating the OKVED code 50.50 (“retail trade in motor fuel”).
This type of activity does not require licensing, but it is worth considering that motor oil belongs to the group of excisable goods, which excludes the use of UTII. It will be possible to use a simplified taxation system in the form of 15% of profit or 6% of revenue (your choice).
You will also need to install a cash register, which must be registered with the Federal Tax Service.
Personnel search
To work in a store, you should not just look for a person who has experience in sales, he must have a good understanding of both motor oils and cars in general. At the same time, it is desirable that the future seller has good communication skills and can speak with any of the clients in the same language, while giving practical advice.
You can motivate a salesperson by assigning him a small salary and a bonus, which will be a good percentage of the store’s revenue.