Many "residents" of Second Life living in the EU received a notice from Linden Lab tonight, telling them, that with the next billing cycle they will have to pay VAT (Value Added Tax). This was not met with a great hooray, of course. Linden Lab wasn't specific about how they will handle VAT and if this new development would change anything in the pricing structure. Most customers were expecting that VAT would simply be added up on top of current prices - and they are probably correct in assuming this. I already received four angry mails on the topic ...
On the other hand: what this means is that Linden Lab will open up a European subsidiary (only EU companies have to handle VAT with EU residents). This is a very welcome develepment, IMHO, and a reflection of the importance of European customers for the company. EU citizens are responsible for roughly 50% of the traffic in Second Life. And while this might change with the rise of the South American and Asian groups in SL, I expect the "Euros" to play an important role in Second Life and other virtual worlds for a long time to come.
Lets just hope that this leads to better service and support for us Euros, too ...
Technorati Tags: 3d web, second life, virtual worlds, web 3.d
I would like to know what this means for us people from Switzerland, because we are no "Euros". Well, not yet...
Posted by: Karsten Füllhaas | September 28, 2007 at 05:21 AM
This only applies to people residing in a country of the EU. And - to the best of my knowledge - you fiercely independet Swiss haven't signed over your beautiful country to the EU. You are Europeans but no EURos ;)
Posted by: Markus Breuer (Pham Neutra) | September 28, 2007 at 06:44 AM
So, we pay Californian tax on our premium accounts AND we pay European VAT? I am interested how Linden will deal taxing their residents double!
Posted by: Fredy Kyong | October 06, 2007 at 12:15 AM
California sales tax is applied to sales of goods to Californian residents (to the best of my knowledge). VAT is applied to sales to a resident of an EU country. As it is kind of hard, to be a resident of California and of a country of the EU I can't see much of a risk for double taxition. :)
But it is possible that I misunderstood your comment. Seems likely actually.
Posted by: Markus Breuer (Pham Neutra) | October 06, 2007 at 02:17 AM