There are those who fear the arrival of the taxman into virtual worlds. There is of course already a presence, income tax, capital gains tax, VAT, take your pick. However some of us feel they might want an even bigger slice of the cake and start looking at inworld currencies.
However I’m here to temporarily alleviate your fears, because at the moment the taxman doesn’t appear to know his arse from his elbow when it comes to virtual worlds.
In early October I started a dialogue (a slow, long, painful, dialogue) with HMRC (The UK taxman). My point being, why the heck am I paying VAT for tier on virtual world land? The problems seem to arise via laws, laws that were implemented without consideration of virtual worlds such as Second Life and inworld currencies. Continue reading “The Taxman’s Taken All My Dough”