CUSTOMS VALUE OF IMPORTED SOFTWARE

1. Concept of application software, control/operation software & intermediate media:

Application software: in clause 1, article 1 of Circular 60/2019/TT-BTC : Application software is data, programs or instructions expressed in the form of commands, codes, diagrams or any other any other form of application software that, when installed on a data processing equipment, e.g. desktop computer, laptop, tablet, is capable of being used as a device. That device performs a job or achieves a specific result that the user of the application software wants to accomplish. Audio, film or image products are not considered application software under this regulation.

Control/operation software:in Clause 1, Article 1 of Circular 60/2019/TT-BTC: Also known as system software, is data, programs or instructions expressed in the form of commands, codes, diagrams or any any other form (operating system), when integrated into machinery and equipment, it acts as an intermediary in communication between the user and the machinery and equipment; Provides an environment that allows users to operate and control the functions of machinery and equipment.

Intermediary means: in Clause 6, Article 2 of Circular 39/2015/TT-BTC:

• A floppy disk, CD, DVD, magnetic tape, magnetic card, external hard drive or any object that stores information, used as a temporary storage medium or to transmit software. For use, the software is transferred, installed or integrated into data processing equipment.
• Intermediaries do not include integrated circuits, microchips, semiconductors and similar devices or components attached to such circuit boards or devices.

2. Customs value of imported goods is software

2.1. Application software

Pursuant to: Clause 6, Article 1 of Circular 60/2019/TT-BTC: In case the imported goods are carrier media containing application software for data processing devices ( software for data processing equipment), customs value is the actual price paid or to be paid of the intermediary, excluding the value of the application software if on the commercial invoice, the value of the The application software is separated from the value of the media.

Value of application software separate from value of intermediate containers:

• Declared value: is the value of intermediate media (floppy disks, CDs, DVDs, magnetic tapes, magnetic cards, external hard drives...).
• Tax rate: is the tax rate according to the intermediate container (subject to all related taxes).

The value of application software does not separate the value of intermediate containers:

• Declared value: is the value of intermediate media ( floppy disk, CD, DVD, magnetic tape, magnetic card, external hard drive...) and software value (due to not separating the value).
• Tax rate: is the tax rate according to the intermediate container ( subject to all related taxes)

2.2. Control and operation software

Control and operating software imported at the same time as the device: Pursuant to: Clause 5, Article 1 of Circular 60/2019/TT-BTC : In case the imported goods are machinery and equipment with control and operation software accompanying import documents: customs value is the transaction value of machinery, equipment and parts Imported control and operating software

2.2.1.   In case the control and operating software is recorded and stored in intermediate media to be installed on machinery and equipment when imported: at Point a, Clause 5, Article 1 of Circular 60/2019/TT-BTC:

• In case the value of the control and operating software is separate from the value of the intermediate means. Declare the value of separate control/operating software and declare intermediate containers for two separate lines of goods.

Control and operation software:

• Customs value: is the value of the software.
• Tax rate: is the tax rate of machinery/equipment using software (subject to all relevant taxes)

Intermediate container:

• Customs value: is the value of the intermediate container
• Tax rate: subject to all relevant taxes.

• In case the value of the control and operating software is not separate from the value of the intermediate means: The customs value is the transaction value of the imported control and operating software, including the value of the imported control and operating software. of the medium. Declare the value of separate control/operating software and declare the common intermediate container.
  • Customs value: is the value of the software + the value of the intermediate container.
  • Tax rate: is the tax rate of machinery/equipment using software (subject to all relevant taxes)

2.2.2.   In case the control and operating software is pre-recorded and installed on machinery and equipment upon import

• Value of machinery and equipment separately from software value: Declare two separate lines of machinery/equipment goods and declare a separate line of software goods. In there:
  • Customs value: is the value of the software
  • Tax rate: is the tax rate of machinery/equipment using software (subject to all related taxes.
• The value of machinery and equipment is not separate from the software value : Declare a separate line of machinery/equipment goods and declare a separate line of software goods. In particular, the software line is declared as follows:
  • Customs value: is the value of the software.
  • Tax rate: is the tax rate of machinery/equipment using software ( subject to all taxes related taxes).

Control and operating software imported before or after machinery and equipment: Pursuant to: Point d, Clause 5, Article 1 of Circular 60/2019/TT-BTC:

• At that time, software imported via intermediate containers will be declared similarly to the instructions above. Note:

When importing before importing machinery/equipment:

• Detailed value declaration: note will import machinery/equipment later.
• When importing machinery/equipment: note the declaration number and declaration date of the previously declared software import declaration.

When importing after importing machinery/equipment:

• Value declaration details: note the declaration number and declaration date of the previously declared machinery/equipment import declaration.

3. Cases where the value of imported control/operation software is not added to the customs value of machinery and equipment

Pursuant to: Point b, Clause 5, Article 1 of Circular 60/2019/TT-BTC :

• Imported control and operating software to upgrade and replace imported control and operating software for the first time has been added to the value of imported machinery and equipment;
• Control and operation software produced in Vietnam for installation on imported machinery and equipment.

Note: at point c, clause 5, article 1 of Circular 60/2019/TT-BTC : in case the buyer must pay the cost of the right to use the control and operating software for installation and operation operating machinery and equipment, the actual amount paid for the right to use the software Control and operation must be included in the value of imported machinery and equipment.

Above is an article clarifying the value of imported software . In addition, to update good articles about import-export or ship freight rates; train schedule. Customers can follow the fanpage to be updated with the latest articles.

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