- Bundled transactions involve selling two or more products or services for a single price.
- Products must be distinct and separately identifiable.
- The True Object Test determines the primary purpose of a bundled transaction.
- If the primary purpose is the tangible good, the transaction is usually taxable.
- If the primary purpose is the service, the transaction is usually non-taxable.
Source: vatabout.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "United States"
- Update Sales and Use Tax: Tax Base and Taxability Updates Across Various States
- Introduction to U.S. Sales Tax Exemptions
- Nexus and Marketplace: Recent Tax Regulation Updates Across California, Georgia, Hawaii, and Louisiana
- California proposes rules for determining proper allocation of Technology Transfer Agreement values
- US Postpones Tariffs on Pharmaceuticals and Wooden Products