How can I differentiate between a product and a service when the product is a custom product? I heard somewhere that if it is a custom product then we have to report it. Is their any truth to this? If there is, how do you tell the difference. All this assuming that the company is not a corporation and the products are over $600. This is what I found on your website. I could understand the “logo”, but what if there is no logo. A few questions. I have a vendor (an individual) that provides us products with logos. We use some of the products to sell as souvenirs, others are giving away, and some are for our own use. They sell us cups, key chains, etc. I think they are 1099 reportable because they are selling a customized product. Do you agree? Answer: 1. The purchase of the logo items is a reportable transaction. The vendor is providing a service by putting your logo on merchandise. The cost of the merchandise is incidental to the cost of the service and included in box 7, non employee compensation. However, if the vendor is a corporation, or the amount paid during the year is less than $600, then no reporting is required.