Why are enterprises exempt from VAT when transferring patented technology?

Legal analysis: when applying for exemption from value-added tax, the pilot taxpayer must hold a written contract for technology transfer and development to the provincial science and technology department where the pilot taxpayer is located for confirmation, and report the relevant written contract and the audit opinion certificate of the science and technology department to the competent State Taxation Bureau for reference. Exemption from VAT requires the following requirements:

First, the technical content is closely related to technology transfer, which is the after-sales service of technology transfer, that is, the technology transfer contract should include relevant technical services and technical consultation clauses;

Second, formally, the price of this part of technical consultation or service and the price of technology transfer are on the same invoice. Only technical consulting and services that meet the above two conditions can enjoy the tax exemption policy.

Legal basis: Article 15 of the Provisional Regulations on Value-added Tax in People's Republic of China (PRC) is exempt from value-added tax for the following items:

(1) Self-produced agricultural products sold by agricultural producers;

(2) Contraceptive drugs and devices;

(3) old books;

(4) Imported instruments and equipment directly used for scientific research, scientific experiments and teaching;

(5) Imported materials and equipment provided free of charge by foreign governments and international organizations;

(six) articles for the disabled directly imported by organizations for the disabled;

(7) selling articles for personal use.

In addition to the provisions of the preceding paragraph, the items of tax exemption and reduction of value-added tax shall be stipulated by the State Council. No region or department may stipulate tax exemption or reduction items.