Keep that Bundle of Joy Properly Taxed/Exempt: How to Deal with Bundled Transactions

Council on State Taxation (COST) – 2022 Sales Tax Conference & Audit Session



Wednesday, March 09, 2022

The taxability of purchases is complicated when they involve various products that are bundled together. For example, expensive computer purchases are often bundled with software, which may not be loaded on a computer but accessed remotely. Increasingly, innovative products are combined together in a sale that cross definitional categories of the states’ sales tax code, using tax definitions often decades behind the current terminology used by industry. How do states differ on how they treat such bundled transactions? The speakers in this session will discuss these issues and will examine foundational questions of how to classify products and services, with a particular focus on the tension between “true object” tests and de minimis bundled transaction rules.

Other Speakers:

Sandra Jacobs, KPMG
Michael Wasser, Ernst & Young