Linden Labs to Eurpoean Union Residents: Insta Tax Time

Posted by Chrischun Fassbinder on September 27th, 2007 filed in real life business in virtual worlds, second life

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From a recent email sent by Linden Labs to all premium account holders residing in European Union countries a notice that they can expect an increase of 17.5% to their upcoming bill (along with every month here-after).

While this private “announcement” comes out of the blue with no warning, it does appear to be another action by LL to conform with laws as they are around the world. With this being according to the EU, the purchase of electronic goods that provide no physical product, purchased by the consumer from a business not located in the country of the consumer, a Value Added Tax (VAT) is required.

Email sent to EU premium account holders is as follows…

Hello, <resident name>.

We have identified that you reside in a European country. Accordingly, your next bill will reflect Value Added Tax (VAT) charged at the rate specified by your country. Please note that VAT applies to all payments to Linden Lab such as land sales, monthly maintenance fees and Premium subscription fees.
If you are eligible for a VAT exemption, you may submit proof of your exemption status, such as your VAT number, here:
https://secondlife.com/account/vat_enter_id.php

If you have other questions, please read the VAT FAQ:
http://secondlife.com/corporate/vat.php

You can also contact us via the support portal:
http://secondlife.com/support

Best regards, and thank you for your continuing support.

Linden Lab
Creators of Second Life

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