According to Article 1 of the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Value-added Tax Policy for Software Products (Cai Shui [201]100):
(1) After the general VAT taxpayer sells the software products developed and produced by himself, VAT will be levied at the rate of 13%, and the part with the actual VAT tax burden exceeding 3% will be refunded immediately;
(2) A general VAT taxpayer selling imported software products after localization can enjoy the VAT refund policy stipulated in the first paragraph of this article. Localization refers to redesign, improvement, transformation, etc. Imported software products, excluding simple Chinese character processing of imported software products;
(3) If a taxpayer is entrusted to develop a software product, the copyright belongs to the entrusted party, and if the copyright belongs to the entrusting party or both parties, the value-added tax shall not be levied. VAT is not levied on taxpayers who register with the National Copyright Administration and transfer their copyright and ownership at the time of sale.
Calculation method of value-added tax refund for on-demand software products
The calculation method of value-added tax on software products is as follows:
1. Tax refund on demand = VAT payable for current software products-sales of current software products ×3%
Current software product value-added tax payable = current software product output tax-current software product deductible input tax.
Current software product output tax = current software product sales × 13%
2. Calculation method of VAT refund for embedded software products.
Tax refund on demand = VAT payable for embedded software products in the current period-sales of embedded software products in the current period ×3%
Value-added tax payable for embedded software products in the current period = output tax for embedded software products in the current period-deductible input tax for embedded software products in the current period.
Current embedded software product output tax = current embedded software product sales × 13%.
It should be noted that there are strict requirements for the name of the invoice for enjoying the value-added tax on software products. When the general VAT taxpayer sells the software products developed and produced by himself, he should indicate the name and version number of the software product on the invoice, which must be consistent with the relevant contents of the software product registration certificate; When invoicing the sales revenue of software products, it is required that the name of the software product is exactly the same as the name on the Application Form for Value-added Tax on Embedded Software Products.
For the software products sold along with computer networks, computer hardware, machinery and equipment, the sales and input tax should be accounted separately from the non-software parts such as computer networks, computer hardware, machinery and equipment, and the software income invoice should be issued separately when selling; For the software products sold together with computer networks, computer hardware and machinery and equipment, if the software revenue invoice cannot be issued separately, the VAT refund shall be calculated as embedded software products, and shall be filled in according to the total sales amount of software products, computer hardware and machinery and equipment when invoicing, and the remarks column of the invoice shall indicate that the software products consistent with the registration certificate are included. When invoicing embedded software products, the sales amount of software and hardware can be indicated in the remarks column of the invoice respectively.
Taxpayers should distinguish between software and hardware when accounting the cost of embedded software products, set corresponding accounting subjects and columns according to the generation and collection of their production costs, and conduct accounting according to standardized accounting procedures to form corresponding general ledger to reflect the production costs of different software and hardware.
The interpretation of today's sales of software products VAT rate is here. After reading the above interpretation of the calculation formula of software product tax rate and tax refund, have you deepened your understanding of software products that can be refunded immediately? The calculation of software tax refund is more complicated. If you have any questions you can't hold back, please log on to our website to find the answers, or ask our Q&A teacher for help!