Technology companies face many hurdles in the eCommerce economy, including how to classify what you are selling. Is your product tangible personal property (“TPP”) or is it a service? This simple question may seem easy to answer until you dive into the nuances that determine how your product is classified, known in the sales and use tax world as the True Object Test. How will the various states classify your particular product; as a service or as TPP?
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August 21, 2019