Economic and legal aspects of the use of computer programs

Abstract

Keywords: computer program, economic and legal regulation, taxation, licenseagreement, initial cost, value added tax, royalties The article deals with the economic and legal aspects of using computer programs inbusiness operations. In particular, certain problems of taxation relating to the creationand use of computer programs are considered. There have been consideredways and means of representations in the accounting of the following operations: purchaseof intellectual property rights to a computer program, supply of a computer programfrom a non-resident (resident) to a resident. The principles of the formation ofthe cost of a computer program, depending on the terms of purchase, have been outlined.The has been defined the concept of royalties from the use of a computer programin the economic activity of an enterprise. The article indicates that the supply ofservices (performance of work) related to software products and that introducechanges to the software are deemed to be any updates, changes, additions to expandtheir functionality. Such an operation is referred to as the supply of software productsusing IT benefits. The supply of services that do not introduce changes, namely: installation,configuration, testing, identification and rectification of deficiencies, information,and consulting support is referred to operations that are subject to VAT atthe general rate. The article states that VAT is charged on operations for the supplyof software products from a non-resident (resident) to a resident in the customs territory(customs territory) of Ukraine, which, in turn, is not subject to VAT. At the sametime, if as a result of the provision of technical support services for software products(including software products provided for use under the license agreement) there areno changes in software products (for example, training staff to work with the program,installing the program, configuration of office equipment, etc.), then operationsfor the provision of such services are subject to VAT in the generally established mannerin the amount of 20 percent.There has been determined the need to improve economic and legal regulation ofthe creation and use of computer programs in the economic activities of companies interms of taxation.