Second Life Forums Archive - VAT policy changed?

Ee Maculate

Owner of Fourmile Castle

Join date: 11 Jan 2007

Posts: 919

01-27-2008 05:25

OK, so my monthly tier payment went through yesterday... and now my "My Account" page tells me that my next payment (Total Monthly Cost) will be $125.... the past few months it's always added VAT to that amount.

Has anyone seen any notice to the effect that they will not now be charging VAT? Or is it just the web site screwing up and not adding it..

Phil Deakins

Prim Savers = low prims

Join date: 17 Jan 2007

Posts: 9,537

01-27-2008 05:42

Mine went through a few days ago and it says the same as yours now - no VAT mentioned. I hadn't noticed. But I wouldn't get too excited. I've not doubt that it'll reappear. A few months ago my billing date moved on 2 days, from the 24th to the 26th - I gained 2 days. After a few months it reverted back to the 24th, and I'm sure that the missing VAT information will similarly reappear.

_____________________

Prim Savers - almost 1000 items of superbly crafted, top quality, very low prim furniture, and all at amazingly low prices.

http://slurl.com/secondlife/Seymour/213/120/251/

Ciaran Laval

Mostly Harmless

Join date: 11 Mar 2007

Posts: 7,951

01-27-2008 05:47

Alas no, mine went through yesterday and VAT was applied and my next statement still says the price with VAT added, it's just a website glitch.

I'm awaiting a reply from The Chancellor of the exchequer on this issue now, having exhausted my enquiries to HMRC who would only tell me that they believe that transactions that take place entirely within a virtual world do not appear to contribute supplies for VAT purposes.

They neatly sidestepped my question regarding why on earth land use fees within a virtual world were considered supplies for VAT purposes. They also neatly sidestepped giving a definitive answer on inworld transactions by saying they do not appear to contribute supplies for VAT purposes, which means they could turn around and say they do any day.

Ee Maculate

Owner of Fourmile Castle

Join date: 11 Jan 2007

Posts: 919

01-27-2008 05:54

Bugger.... looks like I got excited prematurely then!

From: Ciaran Laval

They neatly sidestepped my question regarding why on earth land use fees within a virtual world were considered supplies for VAT purposes. They also neatly sidestepped giving a definitive answer on inworld transactions by saying they do not appear to contribute supplies for VAT purposes, which means they could turn around and say they do any day.

Didn't intend this to become another one of those VAT threads.. but as I understand it VAT can be applied because of some EU agreement about online services..

Ciaran Laval

Mostly Harmless

Join date: 11 Mar 2007

Posts: 7,951

01-27-2008 06:04

From: Ee Maculate

Didn't intend this to become another one of those VAT threads.. but as I understand it VAT can be applied because of some EU agreement about online services..

Indeed but that agreement was designed to level the playing field, in Second Life it has actually created the situation that the directive was introduced to prevent. However I have no objection to paying VAT on my membership, but I don't believe I should be paying VAT on tier as this is for an inworld service. Membership allows me access, after that VAT shouldn't be applied.

Another aspect of HMRC's letter to me is that it would appear that if we were allowed to pay tier inworld by L$, we wouldn't have to pay VAT. LL have previously blogged that they could charge tier by L$. There are however serious potential financial implications for the world as a whole there, such as the potential to devalue the L$.

They'd also need to provide space for tier payment boxes, I mean would a big land owner really reclaim land to install tier payment boxes and change their tier payment policy?

VAT policy changed?
Ee Maculate Owner of Fourmile Castle Join date: 11 Jan 2007 Posts: 919	01-27-2008 05:25 OK, so my monthly tier payment went through yesterday... and now my "My Account" page tells me that my next payment (Total Monthly Cost) will be $125.... the past few months it's always added VAT to that amount. Has anyone seen any notice to the effect that they will not now be charging VAT? Or is it just the web site screwing up and not adding it..
Phil Deakins Prim Savers = low prims Join date: 17 Jan 2007 Posts: 9,537	01-27-2008 05:42 Mine went through a few days ago and it says the same as yours now - no VAT mentioned. I hadn't noticed. But I wouldn't get too excited. I've not doubt that it'll reappear. A few months ago my billing date moved on 2 days, from the 24th to the 26th - I gained 2 days. After a few months it reverted back to the 24th, and I'm sure that the missing VAT information will similarly reappear. _____________________ Prim Savers - almost 1000 items of superbly crafted, top quality, very low prim furniture, and all at amazingly low prices. http://slurl.com/secondlife/Seymour/213/120/251/
Ciaran Laval Mostly Harmless Join date: 11 Mar 2007 Posts: 7,951	01-27-2008 05:47 Alas no, mine went through yesterday and VAT was applied and my next statement still says the price with VAT added, it's just a website glitch. I'm awaiting a reply from The Chancellor of the exchequer on this issue now, having exhausted my enquiries to HMRC who would only tell me that they believe that transactions that take place entirely within a virtual world do not appear to contribute supplies for VAT purposes. They neatly sidestepped my question regarding why on earth land use fees within a virtual world were considered supplies for VAT purposes. They also neatly sidestepped giving a definitive answer on inworld transactions by saying they do not appear to contribute supplies for VAT purposes, which means they could turn around and say they do any day.
Ee Maculate Owner of Fourmile Castle Join date: 11 Jan 2007 Posts: 919	01-27-2008 05:54 Bugger.... looks like I got excited prematurely then! From: Ciaran Laval They neatly sidestepped my question regarding why on earth land use fees within a virtual world were considered supplies for VAT purposes. They also neatly sidestepped giving a definitive answer on inworld transactions by saying they do not appear to contribute supplies for VAT purposes, which means they could turn around and say they do any day. Didn't intend this to become another one of those VAT threads.. but as I understand it VAT can be applied because of some EU agreement about online services..
Ciaran Laval Mostly Harmless Join date: 11 Mar 2007 Posts: 7,951	01-27-2008 06:04 From: Ee Maculate Didn't intend this to become another one of those VAT threads.. but as I understand it VAT can be applied because of some EU agreement about online services.. Indeed but that agreement was designed to level the playing field, in Second Life it has actually created the situation that the directive was introduced to prevent. However I have no objection to paying VAT on my membership, but I don't believe I should be paying VAT on tier as this is for an inworld service. Membership allows me access, after that VAT shouldn't be applied. Another aspect of HMRC's letter to me is that it would appear that if we were allowed to pay tier inworld by L$, we wouldn't have to pay VAT. LL have previously blogged that they could charge tier by L$. There are however serious potential financial implications for the world as a whole there, such as the potential to devalue the L$. They'd also need to provide space for tier payment boxes, I mean would a big land owner really reclaim land to install tier payment boxes and change their tier payment policy?

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VAT policy changed?