Tier fees increased by tax

That's a really good point!!!

Not that taxing already taxed money is unknown in my neck of the woods.

Stupid yet sincere question: Do Germans pay VAT?

It's not a stupid question, yes they do.

The rules for sales tax over the internet are different.

Theres been Several attempts to require sales tax for internet sales and as far as I am aware none have been passed into law yet.

Holy crap.

That would be a sure way to make me downgrade my SL account and start spending more time playing WoW.

Someone with a strong customer service background really, really needs to be recruited by LL and then actually LISTENED to. Even with everything I've seen them do in the last year or so, I'm still flabbergasted that they would institute this policy without so much as a "By the way..."

Or a blog. Though the increase isn't fun, I think people are more upset over the total lack of notice that it was coming.

I'm sure a Linden is looking at this thread. This'd be a great time for a blog post, folks. Even if it just says "yes, we know you're upset.. more info tonight" or something.

That's my position. I know about this tax, when I'm working out my bills I have to factor it in and for my tier payments here, well I assumed all my tax was right. If this is due to billing moving to the UK, then it should have been announced.

I believe Ebay announced the change when they started collecting VAT.

Never put down to conspiracy or greed that which can be explained by total irredeemable inability to think or communicate.

Just think

Anshe Chung and every other european based land owner suddenly is 17.5% less proffitable ..

this is going to really hurt the economy.

that aswell as actuall percentage we will have to pay extra per country affected so we know what we`re up for

if it`s 19% (dutch tax) or 4.5%, big f`ing difference, with 4.5% i *might* live with but with 19% i`d terminate everything i have and packup instantly

As someone posted earlier, not yet, but the current Law expires Nov 1. My state tax rate is 7% for non food and clothes, except certain designated Urban Enterprise Zones where it is 3%. A 7% percent raise would cause me to think about it. 17%? I'd be looking for my entertainment elsewhere.

And US residents are less than 40% of population.

What about the Brazilians? Will noone think about the Brazilians???

I'm gettin' a little punch-drunk here

It's Friday tomorrow .. 16.59 PDT is the moment we should all be waiting for.

It's just-past-lunch on Thursday for LL..

Agreed, Brenda. Arizona's only at 8% but still... I'd DEFINITELY tier down if it meant a nearly 20% increase (25% in Sweden, OMG) in my monthly SL bill.

I'm even thinking of having RL sex again!

This is going to have a far bigger impact than we imagine. The land economy will surely be affected with people's tier now being 17.5% more overnight. What is the first thing most will be thinking about? Tiering down, that's what. Wonder how much yellow will be on the map a month from now...

Anshe will get a tax exemption number - just as I am hoping to do.

I declare my takings here to the taxman, so I should be able to offset the VAT - bloody well hope so.

What is really pissing me off here is that we were not told properly. That is both unprofessional and RUDE of the Lindens.

Something this big should be communicated properly to everyone involved.

Example, Arkansas has no sales tax for online sales if the company you are doing business with doesn't have a presence within Arkansas. (At least this is how one financial person explained it to me!) I get charged a sales tax for buying from Walmart online, but Linden Labs, I do not.

Edit: Also, having read the ToS and billing policies, it does not state that users are liable for taxes in their area. This was, however, a quick scan through relevant passages and not an in depth read.

Remember, 17.5% is more of a middle figure now. I cited that figure on the first page of this thread without much thought because it happens to be what we're charged in the EU country where I'm a resident. As you've seen, the top end increase for some Europeans is 25%.

ROFL - that is the BEST EVER post I have EVER EVER EVER seen ! Walker - you really made my day !

*chuckles uncontrollably*

I really really wonder about the legitimacy of this move. I used to work for a world wide research company and we had members all over Europe....Asia....South America....and of course the USA ...(where it is based)

From what I recall, regarding the products and services we provided.....in the US.... if you purchased over the net...you paid the applicable taxes of your state..if you walked into the corp. office..you paid based on the state that office is in. Over seas customers had the same basic tax issues....we did a lot of web sales and each country had to comply with their own tax laws (their banks were US and UK based, as it were) but...if you were in country, in the corp. office...again, you paid according to that state. Much of that taxation had to do with the fact that items are being 'shipped' in those countries from local wearhouses. Not all...but many. The other issue they had to be compliant with is customs fees.... again....something that cannot possibly apply in SL.

The real dilemma is taxation of 'service'. In the US...(and I'm not sure by state, but I know a few) services are NOT taxable.....only actual 'things'. SL....for all it's cyber reality...is still just a service....there is absolutely nothing tangible that we can walk away with from SL. At best....the downloaded program itself, that allows us access, could be construed as such....but certainly nothing in-world. I'm guessing this is a sticky issue they are going to have to re-think and re-work a few times before everyone agress on it.

It's one of those things that will have to be decided and agreed upon......the service itself is based out of XYZ country.....and taxes and fees should be compliant to where a service or product originates. When banks get involved...it tends to muck up the works....but my gut feeling is this decision is a bit suspect.....and may well have to be revoked once their lawyers and accountants figure it out.

Wait though! I was serious.