It is important to distinguish between transactions involving the provision of services and transactions resulting in the acquisition of property.
The basic element in the distinction is whether the consideration for the payment is the acquisition of property from the provider. If the customer owns the relevant property after the transaction, but the property was not acquired from the provider, then the transaction should be treated as a services transaction. Even if one party acquires property from another party to the transaction but the predominant nature of the transaction is the provision of services and the acqusisition of property is merely ancillary, then the transaction should nevertheless be classified as service provision.
See below for a case study on online consulting and professional services.
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