Virginia Software Maintenance Agreement
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FAQ
A maintenance agreement outlines the steps one party will undertake to insure the upkeep, repair, serviceability of another party's property. Maintenance contracts are commonly used by companies that take care of vehicle fleets, industrial equipment, office and apartment buildings, computer networks, etc.
In addition, since a maintenance agreement does not provide for the repair or replacement of property due to a defect in materials or workmanship or wear and tear, a maintenance agreement is not a warranty nor a service contract.
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.
There are four types of software maintenance: Corrective Software Maintenance. Adaptive Software Maintenance. Perfective Software Maintenance.
A maintenance contract is an agreement between you and your service provider that outlines the tasks, schedules, and frequency of the maintenance services they provide.
Software maintenance is the process of changing, modifying, and updating software to keep up with customer needs. Software maintenance is done after the product has launched for several reasons including improving the software overall, correcting issues or bugs, to boost performance, and more.
Virginia sales tax applies to software purchases where no express proof of electronic delivery. The Virginia Tax Commissioner ruled that purchases of software and software maintenance were subject to use tax, where the taxpayer was unable to prove that the software was delivered electronically and exempt.
A mandatory warranty or maintenance agreement is a contract that comes with a product and is included in the total selling price. Under a mandatory warranty, your customer does not have the option to purchase the product without the warranty.
