Linden Lab why are you charging VAT to one customer while waving this tax for other customers?

[Ceka Cianci]

4 minutes ago, Count Burks said:

I am not dancing around it. According to your reasoning the following scheme would be perfectly legal:

Let's say I have a company that builds custom motorbikes for clients, located in the UK and need to charge VAT on my sales.

I build two custom motorbikes, identical ones.

The first motorbike is sold to a customer who buys the bike from me and pays VAT on the sale price as normal.

I also have a friend, he's a painter. I just happen to have a new house constructed almost ready to be used. The carpenters just finished their work and now it is time to have the home painted.

I have my friend the painter coming to my house asking him for an estimate of the painting work which needs to be done.

We meet at the bike shop before we go look at the home, my friend sees the new motorbike I just produced and asks me what it costs.

My friend and myself go check on the house and the costs for the  painting job which needs to be done. My friend checks the house and I ask for an estimate for the painting job.

My friend says, tell you what I will paint your house and it would cost around the same as that new motorbike I just saw as your store. I am thinking about getting a bike again for the summer so I will do the paint job and you get me the bike and we will call it even.

After I already received some estimates from other painters for the work on the house it is a good deal for me to just exchange and barter with my friend.

We do the deal, no real money gets exchanged so according to your logic there is no VAT owed and no taxable income right, special deal right, companies do this all the time right?

No VAT owed on the sale of the motorbike or the labor of the paint job to the tax office right?

 

 

I walk into McDonald's with a coupon that says'  buy one big mac and get a Mcrib for free.. The guy next to me doesn't have a coupon and buys a big mac and a Mcrib..

Do we both get taxed on our Mcribs?  hehehehe

[Qie Niangao]

 

[Gwin LeShelle]

@OP

Because they did so for years for Americans but not for Europeans. Where was your outrage back then? 🤔

 

[Dorientje Woller]

Think the OP should consider first the difference between real world money/currencies and virtual money/currency.

If I buy a service from Linden Lab, what is in fact a product, with a real world currency, me as enduser have to pay taxes on it, plain and simple. For Europeans that is been set on 21%, what the maximum allowed VAT percentage is within the EU borders. Don't forget that I am buying a service that originates from outside the EU borders (aka, to us Europeans, that's import).

 

On the other hand, if I am able to pay my land with Linden Dollars, there is no tax on it because there are no cost on it, like converting currencies, transfer costs, banks exchanging money aka no value has been added and the currency remains between the borders of Linden Lab. The moment I am cashing out my Linden Dollars, see above.

 

Edited March 11, 2023 by Dorientje Woller

[Count Burks]

 

Feedback from: Baker McKenzie (europa.eu)

Interesting information confirming my theories. This article VAT in the digital age speaks  about selling skins inside of video games between users and why such transactions are outside the scope of VAT but also how the VAT should be handled once the online gaming platform starts to sell skins to players inside of the game.

Replace skin with sim and you might understand how I come to my point of view on this topic and my reasoning.

For those who do not know C2C= consumer to consumer transaction

B2C = Business to Consumer transaction

If you read this carefully it explains how even in a world without reseller rules where trades take place in a consumer to consumer setting the Sale of the digital item (skin, sim, boat, car, land, rocket ship) should be subject to VAT IF the sale is made by the online platform.

 

To make it simple: If Bobby buys 3000 golden twinkle coins for 50 USD$ on the website of Game Company X Bobby will not pay VAT on top of the purchase of these golden twinkle coins. 

When Bobby buys a virtual house or piece of land  using his golden coins from another player in the game or virtual world or metaverse this is a C2C transaction and no VAT applies.

When a player or Bobby cashes out his golden twinkle coins and converts them back into USD$ currency no VAT applies.

When the gaming platform sells a skin to Bobby for golden twinkle coins this is a B2C transaction (business to consumer) and this transaction is inside the scope of VAT which seems logical as the gaming platform purchased and sold the digital good as a taxable person.

 

But Linden Lab doesn't buy the sim they make it themselves ? ....

Linden Lab buys the sim by paying their developers their wages, data center, cloud hosting etc.... That is how Linden Lab buys the sim.

 

So I stick with my views and conviction regarding this topic. 

Edited March 12, 2023 by Count Burks

[Dorientje Woller]

6 hours ago, Count Burks said:

 

Feedback from: Baker McKenzie (europa.eu)

Interesting information confirming my theories. This article VAT in the digital age speaks  about selling skins inside of video games between users and why such transactions are outside the scope of VAT but also how the VAT should be handled once the online gaming platform starts to sell skins to players inside of the game.

Replace skin with sim and you might understand how I come to my point of view on this topic and my reasoning.

For those who do not know C2C= consumer to consumer transaction

B2C = Business to Consumer transaction

If you read this carefully it explains how even in a world without reseller rules where trades take place in a consumer to consumer setting the Sale of the digital item (skin, sim, boat, car, land, rocket ship) should be subject to VAT IF the sale is made by the online platform.

 

To make it simple: If Bobby buys 3000 golden twinkle coins for 50 USD$ on the website of Game Company X Bobby will not pay VAT on top of the purchase of these golden twinkle coins. 

When Bobby buys a virtual house or piece of land  using his golden coins from another player in the game or virtual world or metaverse this is a C2C transaction and no VAT applies.

When a player or Bobby cashes out his golden twinkle coins and converts them back into USD$ currency no VAT applies.

When the gaming platform sells a skin to Bobby for golden twinkle coins this is a B2C transaction (business to consumer) and this transaction is inside the scope of VAT which seems logical as the gaming platform purchased and sold the digital good as a taxable person.

 

But Linden Lab doesn't buy the sim they make it themselves ? ....

Linden Lab buys the sim by paying their developers their wages, data center, cloud hosting etc.... That is how Linden Lab buys the sim.

 

So I stick with my views and conviction regarding this topic. 

Real world situations do not apply in a virtual world. That's the difference you don't seem to understand. As long the transactions are remaining inside that virtual world and being done with the virtual currency of that game/virtual world, there is no VAT to be claimed. The system changes the moment you, as user, are using real money to obtain that virtual currency or in case of SL, cash out your Linden Dollars, you pay taxes/VAT on it. In case of withdrawal or cashing out, keep in mind that you are obliged to report this transaction to your tax regulator , if the amount is exceeding 300 Euro. From that moment, your tax regulator will consider it as a form of income. 

 

BTW, each of us in SL is a fictional being in a fictional world. You can't tax fictional beings.

Edited March 12, 2023 by Dorientje Woller

[Arielle Popstar]

9 hours ago, Count Burks said:

 

Feedback from: Baker McKenzie (europa.eu)

Interesting information confirming my theories. This article VAT in the digital age speaks  about selling skins inside of video games between users and why such transactions are outside the scope of VAT but also how the VAT should be handled once the online gaming platform starts to sell skins to players inside of the game.

Replace skin with sim and you might understand how I come to my point of view on this topic and my reasoning.

For those who do not know C2C= consumer to consumer transaction

B2C = Business to Consumer transaction

If you read this carefully it explains how even in a world without reseller rules where trades take place in a consumer to consumer setting the Sale of the digital item (skin, sim, boat, car, land, rocket ship) should be subject to VAT IF the sale is made by the online platform.

 

To make it simple: If Bobby buys 3000 golden twinkle coins for 50 USD$ on the website of Game Company X Bobby will not pay VAT on top of the purchase of these golden twinkle coins. 

When Bobby buys a virtual house or piece of land  using his golden coins from another player in the game or virtual world or metaverse this is a C2C transaction and no VAT applies.

When a player or Bobby cashes out his golden twinkle coins and converts them back into USD$ currency no VAT applies.

When the gaming platform sells a skin to Bobby for golden twinkle coins this is a B2C transaction (business to consumer) and this transaction is inside the scope of VAT which seems logical as the gaming platform purchased and sold the digital good as a taxable person.

 

But Linden Lab doesn't buy the sim they make it themselves ? ....

Linden Lab buys the sim by paying their developers their wages, data center, cloud hosting etc.... That is how Linden Lab buys the sim.

 

So I stick with my views and conviction regarding this topic. 

That is talking about buying items whereas I thought we actually are buying a license for as long as the Game or Virtual world exists. It really is more of a service. The moment the servers have their plug pulled, it all goes away and residents no longer "own" the products that they supposedly "bought".

[benchthis]

10 hours ago, Count Burks said:

 

Feedback from: Baker McKenzie (europa.eu)

Interesting information confirming my theories. This article VAT in the digital age speaks  about selling skins inside of video games between users and why such transactions are outside the scope of VAT but also how the VAT should be handled once the online gaming platform starts to sell skins to players inside of the game.

Replace skin with sim and you might understand how I come to my point of view on this topic and my reasoning.

For those who do not know C2C= consumer to consumer transaction

B2C = Business to Consumer transaction

If you read this carefully it explains how even in a world without reseller rules where trades take place in a consumer to consumer setting the Sale of the digital item (skin, sim, boat, car, land, rocket ship) should be subject to VAT IF the sale is made by the online platform.

 

To make it simple: If Bobby buys 3000 golden twinkle coins for 50 USD$ on the website of Game Company X Bobby will not pay VAT on top of the purchase of these golden twinkle coins. 

When Bobby buys a virtual house or piece of land  using his golden coins from another player in the game or virtual world or metaverse this is a C2C transaction and no VAT applies.

When a player or Bobby cashes out his golden twinkle coins and converts them back into USD$ currency no VAT applies.

When the gaming platform sells a skin to Bobby for golden twinkle coins this is a B2C transaction (business to consumer) and this transaction is inside the scope of VAT which seems logical as the gaming platform purchased and sold the digital good as a taxable person.

 

But Linden Lab doesn't buy the sim they make it themselves ? ....

Linden Lab buys the sim by paying their developers their wages, data center, cloud hosting etc.... That is how Linden Lab buys the sim.

 

So I stick with my views and conviction regarding this topic. 

On 3/10/2023 Linden Labs' Second Life Strawberry Linden asked Patch Linden about VAT at 11:50 time mark on this youtube recording of Lab Gab.

 

[Rowan Amore]

[Count Burks]

1 hour ago, Arielle Popstar said:

That is talking about buying items whereas I thought we actually are buying a license for as long as the Game or Virtual world exists. It really is more of a service. The moment the servers have their plug pulled, it all goes away and residents no longer "own" the products that they supposedly "bought".

What do you think that you are buying when you buy a sim from Linden Lab? You buy a license on the use of a digital good as long as you are paying the lease for said digital good. This transaction between buyer and seller remains as long as the service exists.

What are you buying when you buy a skin or any other object inside of a video game or virtual world? Again you are buying a license for the use of the digital good or digital property which remains intact for as long as the service exist.

A simulator or region is a digital good, it is in essence a 3D virtual object or mesh and doesn't differentiate itself from any other virtual object inside of a video game or virtual world.

When a person buys a skin in a video game such as Fortnite using their currency V-bucks, they do not have to pay VAT on the purchase of the V-bucks. When a player in Fortnite purchases a skin he is purchasing a licence for the use of the skin inside of the video game Fortnite. The player pays for a license to use the skin inside of the video game for as long as the service exists.

When one player sells a skin for V-bucks to another player this is a Consumer To Consumer transaction. When Epic Games sells a skin inside of the game to players this is a Business To Consumer and Consumer To Business transaction for the license of the use of the skin inside of the video game and Epic Games needs to charge VAT on the sale because Epic Games is a taxable person.

 

Now we apply the same thing with Epic Games as what Linden Lab is doing and trying to do.

Epic Games sells Fortnite skins on their website to players all over the world. If you are from a country subject to VAT you can buy a skin from Epic Games to use inside of Fortnite but you also get charged VAT on the purchase of the skin. This is exactly what Linden Lab is doing.

When players buy skins inside of Fortnite for V-bucks again Epic Games needs to charge VAT on the sale of the skin as it is a Business To Consumer transaction inside of a digital platform for the sale of a licence of a digital good inside of a video game.

 

Linden Lab on the other hand claims there is no VAT to be paid while they are also selling a digital good for a virtual currency inside of a virtual world or gaming platform.

 

There is VAT on the sale of digital goods or licenses for the use of digital goods on gaming platforms and inside of video games or virtual worlds when this happens in Business To Consumer Transaction but not if it happens in a Consumer To Consumer Transaction. 

This makes perfect sense to me. Forget it there is no VAT because people pay with golden twinkle coins and the transactions happen in a game. 

When you study about the reseller rules for ESS you will find that gaming platforms and platform providers need to use IP and GEO Location tracking data and other means to determine the country of origin where they player is situated. So the VAT needs to be charged based on the location of the player in the real world. Linden Lab can easily do this as they have the Payment Info of their users and are able to determine the RL location of their customers.

You can perfectly apply these regulations by switching the word skin which is a license for the usage of a digital good inside of a video game with the word sim or region as they are the exact same thing.

 

 

[Gwin LeShelle]

So basically it's at this point ... pointless to talk to OP since he didn't had a question rather than a pre manifested opinion and basically just wanted to rant. 

Let's move on from here and spend our time on other stuff x3 

This horse is dead, Jim.

 

Edited March 12, 2023 by Gwin LeShelle

[Ceka Cianci]

There is no VAT on play money or we all would be getting tax forms for every purchase we made in the world because they are all mostly user to user..

The user gives Linden lab the play money because inden lab had a perk in a membership.. From what we learned, Linden lab now takes the lindens themselves.. they have the play money and are now the owners of it and  they put the play money on the exchange.. They don't pay any over seas taxes on that money made from the play money.. they would pay U.S. taxes, not the user that never used the exchange.

They don't tax play money.. they only tax money that can be used for real world outside of second life world purchases..

Linden lab used the exchange and not the user.

 

[benchthis]

Here's link to the VAT Law PDF VAT.pdf (firs.gov.ng) 

 

Edited March 12, 2023 by benchthis

[Count Burks]

28 minutes ago, Ceka Cianci said:

There is no VAT on play money or we all would be getting tax forms for every purchase we made in the world because they are all mostly user to user..

The user gives Linden lab the play money because inden lab had a perk in a membership.. From what we learned, Linden lab now takes the lindens themselves.. they have the play money and are now the owners of it and  they put the play money on the exchange.. They don't pay any over seas taxes on that money made from the play money.. they would pay U.S. taxes, not the user that never used the exchange.

They don't tax play money.. they only tax money that can be used for real world outside of second life world purchases..

Linden lab used the exchange and not the user.

 

I encourage you to read this post below, also the source of the post which originates directly from the Europa.eu website submitted by Baker McKenzie who's an international law firm specializing in these matters Baker McKenzie | Company Profile | Vault.com The entire argument of "there is no tax because the transactions happen with play money" is not valid in my opinion.

Understand the difference between C2C and B2C and C2B transactions inside of electronic gaming platforms and virtual worlds and metaverses. If the overseas tax authorities want their VAT on the sale of products to customers subject to VAT it doesn't matter if those products were sold for play money which is then later converted to real money IF the transaction was a Business To Consumer transaction.

The reason why you are not paying VAT or the company is forwarding VAT on purchases you are making in Second Life is because they are all C2C transactions which are exempt from VAT. Linden Lab on the other hand is not a consumer but the platform provider. 

12 hours ago, Count Burks said:

 

Feedback from: Baker McKenzie (europa.eu)

Interesting information confirming my theories. This article VAT in the digital age speaks  about selling skins inside of video games between users and why such transactions are outside the scope of VAT but also how the VAT should be handled once the online gaming platform starts to sell skins to players inside of the game.

Replace skin with sim and you might understand how I come to my point of view on this topic and my reasoning.

For those who do not know C2C= consumer to consumer transaction

B2C = Business to Consumer transaction

If you read this carefully it explains how even in a world without reseller rules where trades take place in a consumer to consumer setting the Sale of the digital item (skin, sim, boat, car, land, rocket ship) should be subject to VAT IF the sale is made by the online platform.

 

To make it simple: If Bobby buys 3000 golden twinkle coins for 50 USD$ on the website of Game Company X Bobby will not pay VAT on top of the purchase of these golden twinkle coins. 

When Bobby buys a virtual house or piece of land  using his golden coins from another player in the game or virtual world or metaverse this is a C2C transaction and no VAT applies.

When a player or Bobby cashes out his golden twinkle coins and converts them back into USD$ currency no VAT applies.

When the gaming platform sells a skin to Bobby for golden twinkle coins this is a B2C transaction (business to consumer) and this transaction is inside the scope of VAT which seems logical as the gaming platform purchased and sold the digital good as a taxable person.

 

But Linden Lab doesn't buy the sim they make it themselves ? ....

Linden Lab buys the sim by paying their developers their wages, data center, cloud hosting etc.... That is how Linden Lab buys the sim.

 

So I stick with my views and conviction regarding this topic. 

 

[Talon Brown]

That poor horse...

Edited March 12, 2023 by Talon Brown

[Ceka Cianci]

48 minutes ago, Count Burks said:

I encourage you to read this post below, also the source of the post which originates directly from the Europa.eu website submitted by Baker McKenzie who's an international law firm specializing in these matters Baker McKenzie | Company Profile | Vault.com The entire argument of "there is no tax because the transactions happen with play money" is not valid in my opinion.

Understand the difference between C2C and B2C and C2B transactions inside of electronic gaming platforms and virtual worlds and metaverses. If the overseas tax authorities want their VAT on the sale of products to customers subject to VAT it doesn't matter if those products were sold for play money which is then later converted to real money IF the transaction was a Business To Consumer transaction.

The reason why you are not paying VAT or the company is forwarding VAT on purchases you are making in Second Life is because they are all C2C transactions which are exempt from VAT. Linden Lab on the other hand is not a consumer but the platform provider. 

 

So in your scenario we all should be getting taxed  for our land that linden lab gives us with our memberships.. because that is the same thing..  The B is giving C land..

The user that generated linden dollars from in the world that is worth nothing  and cost them nothing, gives that money to linden lab for land, they should be charged VAT because linden lab gave them in world land for it?

There is nothing to tax.. Now if you are dealing with games that use money or something of real world value to buy skins and things on an online market place where they are using real money, then ya.. But this is contained in world..

Read carefully  where they say things like Trade, Buy or Sell on an ONLINE PLATFORM for their INGAME AVATARS..

There is no difference in giving us our land with our memberships or giving us land for our worthless linden dollars with our memberships in world. We don't get taxed on the business giving us things..

There is no real world value on the linden dollar, The perk to use worthless play money for land is included in the membership..

You can believe what you like..But you won't get blood out of a turnip no matter how hard you squeeze it..

 

ETA: Just to add.. I'm am leaving the thread for the last time. this time I am sticking to it ..hehehehe

 

 

Edited March 12, 2023 by Ceka Cianci

[Arielle Popstar]

1 hour ago, Count Burks said:

What do you think that you are buying when you buy a sim from Linden Lab? You buy a license on the use of a digital good as long as you are paying the lease for said digital good. This transaction between buyer and seller remains as long as the service exists.

Linden Lab is the platform owner but the transaction is with Tila which is now a separate entity. In any case if you think taxes should be paid on it, then go ahead and do so, I'm sure the VAT people will appreciate your good will.

[Sid Nagy]

14 minutes ago, Ceka Cianci said:

So in your scenario we all should be getting taxed  for our land that linden lab gives us with our memberships.. because that is the same thing..  The B is giving C land.

That is exactly what LL has been doing for a long time already as far as VAT is concerned.
You pay the VAT for premium, you pay the VAT on tier for mainland.
It is because it is a transaction directly with the provider.

When I lease land with Count, than it is a user to user transaction and I don't pay VAT over that transaction.
Now Count leases that land from Linden Lab. That is a provider - user transaction, so count has to pay VAT for his sims.

Real question is, is the L$ still a game token, now you can buy a service directly from the provider or is it to be seen as a money transaction? Than VAT payment is needed, just as Count and the article he is pointing to describe.

Edited March 12, 2023 by Sid Nagy

[Arielle Popstar]

4 minutes ago, Sid Nagy said:

That is exactly what LL has been doing for a long time already as far as VAT is concerned.
You pay the VAT for premium, you pay the VAT on tier for mainland.
It is because it is directly with the provider.

When I lease land with Count, than it is a user to user transaction and I don't pay VAT over that transaction.
Now Count leases that land from Linden Lab. That is a provider - user transaction, so count has to pay VAT for his sims.

But because Tila is a separate entity now and dependent on the relationship between the Lab and Tila, the Lab or Tila may now be seen as a user the same as Count.

[Alwin Alcott]

25 minutes ago, Arielle Popstar said:

But because Tila is a separate entity now and dependent on the relationship between the Lab and Tila, the Lab or Tila may now be seen as a user the same as Count.

no, the money and token traffic doesn't change

[Count Burks]

20 minutes ago, Sid Nagy said:

That is exactly what LL has been doing for a long time already as far as VAT is concerned.
You pay the VAT for premium, you pay the VAT on tier for mainland.
It is because it is a transaction directly with the provider.

When I lease land with Count, than it is a user to user transaction and I don't pay VAT over that transaction.
Now Count leases that land from Linden Lab. That is a provider - user transaction, so count has to pay VAT for his sims.

Real question is, is the L$ still a game token, now you can buy a service directly from the provider or is it to be seen as a money transaction? Than VAT payment is needed, just as Count and the article he is pointing to describe.

There is no VAT being charged on the purchase and sale of Linden Dollars because the Linden Dollar is a synthetic instrument used to transact in and out of a real world currency the USD$.

The Linden Dollar is merely a tool to transact RL currency value. It is not because it is "play money" or declared as "worthless tokens" that they do not represent actual hard currency value.

 

In the USA people need to pay tax on their gambling winnings and here is also a "fake currency" being used to transact in and out of real world hard currency the USD$.

 

Bob goes to the casino, he enters the casino and gives 2000 USD$ to the casino and receives 2000 USD$ worth of "play chips". The play chips are the fake currency of the casino, they only have value in the casino.

Bob used his "play chips" inside of the casino where he played blackjack. Bob won 400 USD$ worth of "play chips" and cashes them out when he leaves the casino. The "play chips" did represent RL currency value the entire time.

By law Bob needs to declare his "play chips" winnings on his US tax return and pay tax on them.

The Linden Dollar is a digital version of casino playchips. A temporary synthetic instrument to represent RL currency value.

[Arielle Popstar]

8 minutes ago, Count Burks said:

Bob goes to the casino, he enters the casino and gives 2000 USD$ to the casino and receives 2000 USD$ worth of "play chips". The play chips are the fake currency of the casino, they only have value in the casino.

Bob used his "play chips" inside of the casino where he played blackjack. Bob won 400 USD$ worth of "play chips" and cashes them out when he leaves the casino. The "play chips" did represent RL currency value the entire time.

By law Bob needs to declare his "play chips" winnings on his US tax return and pay tax on them.

The Linden Dollar is a digital version of casino playchips. A temporary synthetic instrument to represent RL currency value.

Bob only needs to declare when he cashes them in for r/l currency. As long as he keeps the play chips as play chips, he is not needing to declare anything.

[Dorientje Woller]

12 minutes ago, Count Burks said:

There is no VAT being charged on the purchase and sale of Linden Dollars because the Linden Dollar is a synthetic instrument used to transact in and out of a real world currency the USD$.

The Linden Dollar is merely a tool to transact RL currency value. It is not because it is "play money" or declared as "worthless tokens" that they do not represent actual hard currency value.

 

In the USA people need to pay tax on their gambling winnings and here is also a "fake currency" being used to transact in and out of real world hard currency the USD$.

 

Bob goes to the casino, he enters the casino and gives 2000 USD$ to the casino and receives 2000 USD$ worth of "play chips". The play chips are the fake currency of the casino, they only have value in the casino.

Bob used his "play chips" inside of the casino where he played blackjack. Bob won 400 USD$ worth of "play chips" and cashes them out when he leaves the casino. The "play chips" did represent RL currency value the entire time.

By law Bob needs to declare his "play chips" winnings on his US tax return and pay tax on them.

The Linden Dollar is a digital version of casino playchips. A temporary synthetic instrument to represent RL currency value.

Frankly, the question is: Do you really want to crash the already weakened economy in Second Life with your ideas? The moment LL would introduce VAT on in world transactions ... the game is over for everybody.

[Count Burks]

57 minutes ago, Ceka Cianci said:

The user that generated linden dollars from in the world that is worth nothing  and cost them nothing, gives that money to linden lab for land, they should be charged VAT because linden lab gave them in world land for it?

Yes because Linden Lab is the game provider and a business to consumer transaction takes place. Linden Lab is a taxable person because Linden Lab bought the sim they are now selling to the consumer and were able to deduct their purchase costs of the sim from their taxes.

When Linden Lab sells the sim license in world for their worthless game token and then converts the worthless game tokes to RL hard currency Linden Lab is generating profit as a taxable person.

If the user buys land from another user this is a C2C or consumer to consumer transaction and then no VAT is involved.

 

*What are Linden Lab their purchase costs for the sim? Paying programmers, paying amazon cloud hosting etc... These are all business expenses Linden Lab can deduct from their taxes. A B2C for profit transaction did take place even if it was in fake game currency.

[Count Burks]

1 minute ago, Dorientje Woller said:

Frankly, the question is: Do you really want to crash the already weakened economy in Second Life with your ideas? The moment LL would introduce VAT on in world transactions ... the game is over for everybody.

There will never be VAT on in world transactions between residents as these are exempt from VAT like they have always been.