Taxes, in every aspect of our lives today; everywhere – the income you earn, the food you buy, or even the services you subscribe to – with us. And unfortunately, this will follow us all the way to the metaverse.
The popular online metaverse platform, considered one of the longest-lived games, according to an ArsTechnica report, has now announced that it will collect local sales tax on metaverse purchases from US users.
This announcement was made by developer Linden Labs. A 2018 Supreme Court decision South Dakota vs Wayfair Inc, Et Al determined that states and territories can charge sales taxes even on products sold by online companies that do not have any physical presence in that state.
Linden Labs set out to create a complex tax system a few years ago in which more in-world currency was charged to users who created more in-world objects in Second Life (because it means more server resources for the user). had worked. The riot, organized by Second Life citizens, forced Linden Labs to change the system by charging users directly for land with a monthly fee.
Linden Labs said, “We have done everything we can to protect our residents from these taxes for as long as possible, but we can no longer afford them.”
Will Be Charged
In the statement made, it was announced that sales tax will begin to be collected in the USA as of March 31, 2022. Taxes will currently be charged only on premium subscriptions and recurring invoices such as land charges. The amount of tax charged will be clearly stated on the receipt or invoice. The company said:
“This is news we don’t like to share, but for the health of business and Second Life, we can no longer continue to bear these tax burdens. Thank you for your understanding and continued support for Second Life.”
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