European Second Life Users to Pay Value Added Tax
September 27th, 2007 by Benjamin Duranske
Linden Lab emailed European Second Life users earlier today to inform them that Linden Lab would begin collecting Value Added Tax on all Second Life fees and other purchases from European users including land use fees, private region fees, land auctions, purchases from the land store, and account fees.
Second Life’s ‘Gwyneth Llewelyn’ (who undoubtedly knows more about European tax issues than I do) has already thoroughly covered the issue, and I saw her story first, so I’ll just direct readers there on this one.
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This will make it more cost-effective for many EU users to pay Linden Lab for things indirectly (i.e., by buying currency (on a non-LL exchange, if LL charge VAT on their currency purchases. too), and then purchasing the goods/services in L$ from a non-EU resident who has purchased them directly from LL) than to pay Linden Lab directly.