True object test

Applied to bundles, a true object test is a method used by jurisdiction taxing authorities to determine whether an invoiced item is taxable. This is typically used when there are some ancillary items included in the sales price of a good or service. If a SaaS product is sold with a few free hours of integration services, for example, the jurisdiction would look to what the customer is really buying—in other words, trying to determine if the customer would make the purchase if the SaaS was not included (in this case, probably not). Therefore, the true object of that sale is the SaaS not the consulting services, and the SaaS taxability rules would apply to the transaction.