In this session, the speakers will discuss practical approaches for determining whether to classify a product as a sale of tangible personal property or the sale of a service. In particular, they will present situations involving products with substantial service and tangible personal property components, as well as how to determine whether tangible personal property is consumed when rendering a service. This discussion will go into depth on products offered “as a service”, as well as more traditional product offerings. The speakers will also offer proactive strategies you can employ to limit exposure in the event of an audit and potential defenses to raise during audit.

After attending this session, the participants will be able to:

• Analyze their business’s approach to classifying the products they purchase and sell
• Recognize products that may be classified as sales of tangible personal property in spite of the product’s name
• Utilize state-specific standards for determining when tangible personal property is consumed in providing a service
• Consider tax opportunities and potential pitfalls resulting from states’ varied approaches to product classification
• Employ proactive strategies to limit potential exposure and raise audit defenses if a jurisdiction disagrees with your approach