Place of Supply: location of recipient where software and chip design services include ancillary testing on prototype hardware. Where software and integrated circuit design services form a composite supply with chip design/software development as the principal supply and testing on recipient provided prototype hardware as an ancillary activity, the place of supply is the location of the service recipient; testing on prototype hardware does not convert the ancillary activity into a separate supply and separate place of supply rules for ancillary supplies do not apply.