Kentucky Software Maintenance and Support Agreement
Description
How to fill out Software Maintenance And Support Agreement?
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FAQ
More Definitions of Support and Maintenance Agreement Support and Maintenance Agreement means an Agreement for the provision of support and maintenance services in respect of one or more Products.
Kentucky SaaS is non-taxable because it isn't tangible personal property.
In your maintenance agreement, you will need to include:A section that defines both the provider and the client including their full legal names and any terms that need to be defined in the contract.A list of the services that will be performed in detail.The compensation for the agreed upon services.More items...
Certain goods are exempt from sales and use tax including coal and other energy-producing fuels, certain medical items, locomotives or rolling stock, certain farm machinery and livestock, certain seeds and farm chemicals, machinery for new and expanded industry, tombstones, textbooks, property certified as an alcohol
A software maintenance agreement, or SMA, is a legal contract that obligates the software vendor to provide technical support and updates for an existing software product for their customers. It may also extend the expiration date of certain features, such as new releases or upgrades.
Related Definitions Maintenance and Support Contracts means the contracts pursuant to which, prior to the Closing Date, Seller has obligations to provide maintenance and support to its customers.
The full list of taxable services includes: Landscaping services, including but not limited to: lawn care and maintenance services; tree trimming, pruning, or removal services; landscape design and installation services; landscape care and maintenance services; and snow plowing or removal services.
Service fees for the installation of software are subject to sales tax. Moreover, charges for software maintenance services including delivery of updates for prewritten software are generally taxable. However, maintenance contracts that only provide support services for canned software are not taxable.
The sale of prewritten software maintenance agreements are also taxable as extended warranty services defined in KRS 139.010(13).
200bNo, contractors are making improvements or repairs to real property, and improvements or repairs to real property are not services that are subject to sales tax.