"Key tax aspects of IP rights transfers", by Edita Ivanauskienė, Antanas Butrimas and Jurgita Randakevičiūtė (LAWIN Vilnius), provides a handy introduction to the niceties of the taxation of intellectual property right transactions in Lithuania. Published on International Law Office (
here), this piece outlines the country's basic tax regime and then considers the position of tax-resident individuals, non-resident individuals, taxation of entities, Value-added tax (VAT) and the avoidance of double taxation.
Regarding VAT,
"The transfer of copyright and related rights, industrial property rights, franchise rights or know-how is considered a provision of services and is subject to value added tax at the standard rate of 21%".
It always seems strange to this blogger that an outright transfer of an intellectual property right should be regarded as the provision of a service.
"It always seems strange to this blogger that an outright transfer of an intellectual property right should be regarded as the provision of a service."
ReplyDelete'Tis odd, but VAT is binary – if it's a supply in the course of business, and it's not a supply of physical goods, then it's a supply of services. Services are defined (in effect) as "not goods" – which produces this sort of strangeness in various areas.