Peach-colored wallpaper, leather sofas, paintings on the walls in gold frames. At the reception, a girl with a pleasant appearance and voice offers coffee. It seems that this is the quintessence of everything that you don’t expect to see in a pawn shop. Here we need to make a footnote that this is, so to speak, an elite pawnshop. He specializes in precious stones and Swiss watches. “We try to focus on VIPs, on expensive collateral, and on working with high-class values (high class - note from Compare.ru). But this doesn’t mean that if grandma comes and asks for a loan before retirement secured by an old ring, we won’t give it to her - of course we will,” says Pavel Barannik, owner of Lombard 32.
Pavel Evgenievich is the only pawnshop owner who agreed to talk with me. I sent requests to several organizations, since December I wrote to them on Facebook, sent requests by email, but no one responded. Visitors to pawn shops also don’t like to talk to strangers - in the 4 hours that I spent in this establishment, only one agreed to talk about his experience.
Pawnshop as a business
Keeping records and calculating taxes is impossible without understanding the legal basis of the company's activities. Therefore, let us turn to the Federal Law of July 19, 2007 No. 196-FZ “On Pawnshops”. But we warn you right away – this is not an easy business.
A pawnshop is prohibited from engaging in any other business activity other than providing short-term loans to citizens, storing things, and providing consulting and information services. But a pawnshop can make one-time transactions for the sale of fixed assets and surplus inventories.
Only a legal entity can be a pawnshop. An individual entrepreneur does not have the right to carry out this activity. Pawnshops operate under the general taxation regime. They cannot apply the “simplified tax” (paragraph 7, paragraph 3, article 346.12 of the Tax Code of the Russian Federation), and in connection with the provision of household services to the population, they are not threatened with UTII (paragraph 7, article 346.27 of the Tax Code of the Russian Federation).
The pawnshop issues loans to individuals exclusively on the security of property (Clause 1, Article 7 of Law No. 196-FZ). The loan agreement is made in writing and is considered concluded from the moment the loan amount is transferred to the borrower and the item being pledged is transferred to the pawnshop. The income from this activity is interest on the loan. The pawnshop, although it conducts cash payments with borrowers, does not use cash registers. He uses strict reporting forms.
A necessary expense item for a pawnshop is insurance of items accepted as collateral in the full amount of their valuation (clause 3 of Article 358 of the Civil Code of the Russian Federation).
Items pledged do not become the property of the pawnshop. If the borrower fails to fulfill his obligations under the loan agreement, the pawnshop has the right to foreclose on the pledged (unclaimed) item. In other words, sell it. After the sale of such an item, the pawnshop’s claims against the borrower are repaid, even if the amount received from the sale is not sufficient to fully satisfy them. But it may happen that the amount of proceeds turns out to be higher than the amount of the borrower’s obligations or the amount of the property’s valuation. In this case, the pawnshop is obliged to return part of the money to the citizen.
Pawnshops are classified as organizations whose operations fall within the scope of the Federal Law of August 7, 2001 No. 115-FZ “On Combating the Legalization (Laundering) of Proceeds from Crime and the Financing of Terrorism.” For this reason, they are subject to registration with Rosfinmonitoring and are required to interact with it in the prescribed manner. In particular, the pawnshop must develop appropriate internal control rules.
Where to donate coins? Banks, pawn shops, auctions or collectors?
The easiest way is to take your coins to a pawnshop. This method is very convenient. Every self-respecting pawnshop accepts coins. Transactions with a pawnshop are safer and faster.
But, before handing over your coins, carefully study all the information about them on the Internet. Otherwise, you risk making a mistake with the price. As a rule, banks and pawn shops offer the lowest price for coins. Therefore, before deciding where to donate your coins, carefully study all the existing ones.
Property pledged
The pawnshop's break-even is ensured by the properties of the pledged property. It must be highly liquid. Taking into account market realities, prompt sales are mainly found for jewelry made of precious metals - gold and silver. Unpurchased jewelry can be sold in bulk to procurement companies that send scrap precious metals for further processing.
However, the circulation of precious metals creates additional problems. Only a pawnshop that is specially registered with the State Assay Supervision Inspectorate has the right to carry it out.
In this area, you must additionally be guided by the norms of the Federal Law of March 26, 1998 No. 41-FZ “On Precious Metals and Precious Stones.” The procedure for handling, recording and storing products containing precious metals, pearls or precious stones is strictly regulated by the state. Failure to comply with it entails administrative liability under Art. 19.14 Code of Administrative Offenses of the Russian Federation and criminal liability under Art. 191 of the Criminal Code of the Russian Federation.
And the accountant of a “jewelry” pawnshop will have to work with the Instructions on the procedure for recording and storing precious metals, precious stones, products made from them and maintaining records during their production, use and circulation, approved by Order of the Ministry of Finance of Russia dated August 29, 2001 No. 68n. It prescribes, in particular:
- keep records of precious metals and precious stones as part of collateral by weight, quality and in value terms (clause 6) of the Instructions);
- twice a year (as of January 1 and July 1) conduct inventories of precious metals and precious stones (clause 16).
It is useful to know that weighing of jewelry and other household items is carried out with accuracy: from gold - up to 0.01 g, from silver - up to 0.1 g.
The content of precious metal in the product must be recalculated based on its fineness in terms of the highest fineness.
For gold it is 999.99. Example 1.
The weight of the gold chain is 50.02 g, and its fineness is 585. Moreover, the pure gold in it is 29.26 g (50.02 g x 585 / 999.99).
But the pawnshop accountant will not have to submit special statistical reports to Gokhran - in form 2-dm or others in accordance with clause 6.24 of the Instructions. The fact is that the pawnshop does not have the right to use and dispose of the pledged products (Clause 5, Article 2 of Law No. 196-FZ). Therefore, Rosstat Resolution No. 88 dated November 14, 2007 does not apply to it. This conclusion follows from the order in which these forms are filled out.
But when selling jewelry to legal entities, be careful! The buyer must have and present to you a certificate of special registration authorizing him to carry out such transactions. Otherwise, your transaction will be illegal - with all the ensuing sad consequences. From a civil legal point of view, it will be insignificant (Article 168 of the Civil Code of the Russian Federation).
Another popular type of specialized pawnshops is car pawnshops. But you will need a parking lot to store cars. Meanwhile, renting space will not be cheap, and selling a used car today is problematic.
Buying coins of the USSR
Coins of this category are also very popular. There is a special demand for coins from the times of the USSR and the RSFSR. This group includes 1921-1923 (RSFSR), as well as 1923-1991 (USSR). It is worth noting that special requirements are imposed on copies of the Soviet period. Such coins must be in almost perfect condition.
Basic requirements for coins of the Soviet period:
- no scratches;
- no abrasions;
- maintaining the integrity of the coin.
The price of such a coin directly depends on its condition and circulation (the smaller the circulation, the more expensive the coin).
Particularly popular is the purchase of commemorative coins from the USSR era. The price also includes rare USSR pennies. Please note that some rare coins, mainly from the period 1962-1991, can be purchased in bulk.
Where to get working capital?
Essentially, a pawnshop sells cash. But where does he get them from?
It is natural to assume that the pawnshop will resort to loans and credits. Then he will “survive” by placing funds at a higher interest rate than he attracts. Roughly speaking, money is bought “wholesale” and sold “retail”.
However, the implementation of such a simple scheme gives rise to banking operations. This follows from the relationship of subparagraphs 1 and 2 of Art. 5 of the Federal Law of December 2, 1990 No. 395-1 “On Banks and Banking Activities.” The decisive condition for such classification will be the percentage nature of borrowings (clause 1 of Article 834, paragraph 3 of clause 3 of Article 835 of the Civil Code of the Russian Federation).
Meanwhile, carrying out banking operations without a banking license threatens big troubles. First of all, the entire amount received as a result of these operations will be charged to the federal budget, and in addition - a fine in the amount of twice this amount (Article 13 of Law No. 395-1). In addition, activity without a license constitutes an administrative offense under paragraph 2 of Art. 14.1 Code of Administrative Offenses of the Russian Federation. Finally, illegal banking activities are Art. 172 of the Criminal Code of the Russian Federation.
Our concerns are indirectly confirmed by letters from the State Tax Inspectorate for the Moscow Region dated November 30, 1995 No. 06-01-1/1765 and dated June 1, 2010 No. 03-11-10/67. The author did not find any direct official explanations on this fundamental issue.
But, according to the author, there are no obstacles to pawnshops attracting interest-free loans. But who will give money for circulation without a business purpose? It makes more sense to place them in a bank deposit. True, interest-free financing can be provided by business owners (participants or shareholders of a business company) - counting on dividends. The other side of this “coin” is that interest-free loans are the subject of state monitoring (paragraph 8, paragraph 4, paragraph 1, article 6 of Law No. 115-FZ).
But a pawnshop can use interest-bearing loans and loans for business activities. For example, invest such funds in equipping public service points and spend them on administrative and managerial purposes. The loan agreement must specify the intended purpose of the funds and ensure that they are spent in accordance with this purpose (Article 814 of the Civil Code of the Russian Federation).
Well, there are no obstacles to lending to the population from the pawnshop’s own funds.
Coins of Russia
You can also donate coins to modern Russia. This may surprise you, but even those coins that are currently in circulation have a certain value. Among those in everyday use you can often find particularly valuable specimens. The price of such coins directly depends on the total circulation and cost. Of particular value are coins that are distinguished by a wide edge, a defect, or the presence or absence of a mint mark.
Commemorative coins are no less popular. Commemorative gold or silver coins will cost quite a large sum, but commemorative copies made of base metal are valued significantly lower.
Also, you can profitably hand over coins dedicated to some special events in the history of the country, sports, as well as those that were issued as part of the series “Outstanding Personalities of Russia”, Red Book”, “Architectural Monuments of Russia”, “Golden Ring of Russia” and etc.
How to calculate taxes?
Although pawnshops have the right to provide storage services, in practice they do not do this. Agree that a safe deposit box in a bank seems like a more suitable place to store family jewelry. In the same way, it is difficult to imagine a pawnshop actually engaged in consulting.
As a result, most pawnshops receive only interest income on cash loans, not subject to VAT (clause 15, clause 3, article 149 of the Tax Code of the Russian Federation). Although they do not pay VAT (letter of the Department of Taxation of Russia for Moscow dated March 13, 2003 No. 24-11/13734), they submit “zero” tax returns on a general basis. True, income exempt from taxation and VAT amounts not subject to deduction must be reflected in section 7 of the declaration (in the form approved by order of the Ministry of Finance of Russia dated October 15, 2009 No. 104n).
Attention! If a pawnshop charges a fee for storing collateral (for example, in case of late repayment of a loan), then these amounts are subject to VAT. Then the accountant will have to keep separate records of tax amounts for taxable and non-taxable transactions (clause 4 of Article 170 of the Tax Code of the Russian Federation).
For profit tax purposes, interest received under loan agreements is classified as non-operating income. Grounds – clause 6 of Art. 250 Tax Code of the Russian Federation. Surprisingly, the pawnshop has no income from sales. This position is supported by the letter of the Ministry of Finance of Russia dated 06/05/2008 No. 03-03-06/4/41.
Finally, the sale of unclaimed property owned by borrowers is not covered by UTII. The reason is that the pawnshop does not own the property. But the collateral items may become the property of the pawnshop. And if he sells them through retail trade, then the issue of taxation is decided based on the availability of a sales floor or retail space. These nuances are explained in letters of the Ministry of Finance of Russia dated 05/05/2006 No. 03-11-04/3/242 and dated 03/21/2006 No. 03-11-04/3/142.
It is worth noting that pawn shops do not provide information on Form 2-NDFL about the income of individuals from the sale of collateral (letter of the Ministry of Finance of Russia dated May 14, 2005 No. 03-05-01-04/133).
Silver, gold and foreign coins
Silver and gold coins can be turned in very profitably. This type of coin buying is very popular in Moscow. Pawnshops that buy coins of this type are willing to pay a good amount, but much more can be obtained by offering them to numismatists.
Foreign coins are also very interesting for numismatists. Basically, buying is carried out if the coins belong to a certain historical period. Of particular interest are coins issued for certain famous dates, as well as annual sets that were issued by mints of various foreign countries.
How to extend a loan agreement when paying interest?
In addition to the pledge ticket form (it is intended for both the “Pledge” and “Redemption” operations), you will need a printed form
“Additional extension agreement”, which will be applied when completing the “Payment of interest” transaction
Just like the printed form of the deposit ticket, additionally the extension agreement is implemented in the form of external processing
. You can customize your individual conditions yourself by making changes to external processing and not affecting the standard functionality.
What should you consider?
Before you start drawing up an agreement, you need to familiarize yourself with how to calculate the expected interest, because it is beneficial for a pawnshop if the rate is as high as possible. The client would prefer that the rate be an order of magnitude lower.
The calculation is very simple:
- For example, a person handed over a gold ring whose weight does not exceed 3 grams. According to the pawnshop's estimate, the amount was three thousand rubles;
- The interest rate, for example, is 0.55% per day;
- Registration is carried out for a period of 15 days;
- Then, it turns out, the person will pay 16.5 rubles per day, and after the specified period the ransom amount will reach 3247 rubles 50 kopecks.
Total: three thousand is the loan amount, and 247 rubles 50 kopecks is the accrued interest.
Now, based on this example, you can easily understand how to calculate the expected interest; for a pawnshop this is very profitable and convenient.
Knowing how interest is calculated in a pawnshop, you can easily calculate the entire amount that will be received at the end of the time period. Thanks to this knowledge, you can once again determine for yourself whether the game is worth the candle and whether it is necessary to obtain a loan.
It happens that a life situation requires an immediate investment of money, sometimes it even concerns matters of life and death. Then how interest is calculated in a pawnshop will be of little interest to anyone. Although in any case, the most correct decision would be to contact an organization that offers a minimum percentage.
