Description of distinction between supplies of IPP and services
45. If the supply includes the provision of rights and the rights are the predominant element of the supply, the supply is likely a supply of intangible personal property. If the rights are merely incidental, the supply is likely a supply of a service.
46. The following are factors that generally indicate that a supply is one of intangible personal property:
- a right in a product, a right to use a product for personal or commercial purposes or a right of access is provided, such as:
- intellectual property or a right to use intellectual property (for example, a copyright)
- rights of a temporary nature (for example, a right to view, access or use a digitized product while online)
- a membership in a club or association
- an admission to a workshop, seminar or event
- a transportation pass that entitles an individual to one or more passenger transportation services
- a digitized product (for example, online music or online movies) is provided that has already been created or developed, or is already in existence
- a digitized product (for example, a logo) is created or developed for a specific customer, but the supplier retains ownership of the product
- a right to make a copy of a digitized product is provided
47. The following are factors that generally indicate that a supply is a service:
- the supply does not include the provision of rights (for example, technical know-how), or if there is a provision of rights, the rights are incidental to the supply
- the supply involves specific work that is performed by a person for a specific customer, such as:
- a consulting service
- a training service or service of instruction
- a web design service
- there is human involvement in making the supply