Data warehousing transactions & tax issues

The vendor uses servers or computer equipment to provide data warehousing services to customers, owns and maintains the equipment on which the data is stored, provides access to many customers to the same equipment and has the right to remove and replace the equipment at will.  The customer will typically have no possession or control over the equipment and will utilise the equipment concurrently with other customers.

Such transactions are characterised for income purposes as provision of services rather than rental or lease transactions.