DaniMillar2000

The basic premise here is wrong and that's why there's confusion. You cannot purchase anything from LindenLab in L$. No one is paying region rental (tier) to LL in LindenDollar tokens. Those tokens, which have no intrinsic value are paid to third parties. The third parties (which may or may not be in Europe) pay in fiat currency to LL. (fiat currency is currency issued by a government). It they're located in a VAT state, then they'd pay it. So ultimately, LL is collecting and paying the VAT appropriately.