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Paying VAT on Linden (instant buy) purchases?


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Was just reading about SL's VAT policy and how it only affects EU residents. For a while now, I've been paying VAT on instant Linden purchases and I live in the USA. I don't pay VAT on the buy/sell orders.

Do USA residents pay VAT as well? Haven't been able to find much info on this..

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Kether Farshore wrote:

Do USA residents pay VAT as well? Haven't been able to find much info on this..

No. VAT is a European tax.

The USA uses... Sales Tax (which is not the same, but initiated at the same stage of the transaction)? You'd have to look up relevance, tax amounts and reporting requirements depending on your state.

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Kether Farshore wrote:

and not "sales tax".

 

Sorry for any confusion. I don't think Linden Lab charge sales tax on anything (I'm not a US resident, so not certain).

I just meant that sales tax is the name that any tax at point of sale would be called in the US. But it's not VAT, nor used like VAT.

Tax is messy. :P Good luck!

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LL doesn't charge sales tax if you live in the US due to a federal law that makes internet sales sales tax free for the most part.  However in some states you are required to report any internet purchases and pay sales tax on any that sales tax applies to.  They really have no way of checking up on you though.

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Check your settings but also contact the billing department. I was living in North Dakota but for some reason my membership was processed through London. Not only was VAT charged but my bank put a hold on my card until I called and verified the purchase was ok.

I called LL and they refunded the VAT and had no explanation of why my transaction was processed through London.

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