Sales tax glossary
What is a bundled transaction?
A bundled transaction is a sale of two or more distinct products or services, some taxable and some not, for one price that isn't itemized. States have specific rules for bundles, and many treat the whole price as taxable unless the seller can separate the amounts using its records.
Example
A company sells a gift basket with taxable candy and nontaxable fruit for a single price. Depending on the state, the entire price of the basket may be taxable.
Why it matters for sellers
How you price and invoice a bundle can change the tax owed. Itemizing the taxable and nontaxable parts, where a state allows it, can keep you from overcharging customers or undercollecting.
Related terms
This definition is general information, not tax or legal advice. Rules vary by jurisdiction and change over time.
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