VAT software products

Services for the creation of software products subject to VAT
(question 10 Generalized advice No. 536)

By including 2 tbsp. 430 of the Civil code of Ukraine, the intellectual property rights to the object, created by the order, belong to the Creator of this object and the customer jointly, unless otherwise provided by the contract. Thus, even if “on the shore”, that is, at the time of conclusion of the contract, the parties have determined that the property rights to software products owned by the customer, the contractor can’t really apply the tax benefit on PP. 261, subsection 2 p. XX of the tax code. He does not provide software products – no rights to it from the developer no. All he does is provides services that are not laterbut. The position of the tax authorities is balanced.

However, if the customer will be non-resident, to charge VAT the contractor still must not – then the place of supply of services for the development, delivery and testing of software, data processing and providing advice on issues of Informatization, information and other services in the sphere of Informatization, including using computer systems” will be outside of Ukraine (PP. “in p. 186.3 GCC), and therefore, the object of taxation is missing.

The technical support services, which provides software products are exempt from VAT

(question 4 Generalized advice No. 536)

precondition: services technical support (installation, configuration, testing, detection and elimination of defects) should be an integral supply of software products. In our opinion, the cost of such services is impractical to allocate separately, and should be included in the cost of delivery of software products.

If the manufacturer will separate the support from the software products will have to charge VAT.

Also VAT exempt services support from third party Resellers of software products. However, to what will appeal the tax, if not, the manufacturer will increase the selling price of the program at the cost of technical support and the cost of the services separately would not light up) – hard to say. The easiest option: program (benefit) service and not the manufacturer (including VAT).

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