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VAT Nonsense = Non Renewing European
Yumi Murakami
DoIt!AttachTheEarOfACat!
Join date: 27 Sep 2005
Posts: 6,860
10-05-2007 07:11
From: Broccoli Curry
It should be.

Linden Lab is an american company, apparently charging VAT to European users because it's based on the location of the service received, not provided.

Therefore, if ACS is providing services to a European user, under the very same laws, they should be charging European users VAT for renting land from them, and passing the VAT back to Europe in the same way that Linden Lab are apparently forced to.


That's what's caused the controversy over Anshe switching her payments to L$.

Since they are L$ payments, there is no VAT to pay on them because no real money is changing hands.

It's exactly this fact which enables non-European L$-based businesses to escape the requirement to collect VAT, while making it impossible for European ones to VAT-register; and this should be LL should be changing.

(And, incidentally, Anshe Chung lives in Germany, not China - although I'm not sure where ACS is registered. Even if the business is in China, the "used and enjoyed" regulation would seem to suggest she should be paying German VAT.)
Broccoli Curry
I am my alt's alt's alt.
Join date: 13 Jun 2006
Posts: 1,660
10-05-2007 07:31
From: Yumi Murakami
That's what's caused the controversy over Anshe switching her payments to L$.

That certainly implies she got a "tip off" which is so wrong on so many levels.

From: Yumi Murakami
(And, incidentally, Anshe Chung lives in Germany, not China - although I'm not sure where ACS is registered. Even if the business is in China, the "used and enjoyed" regulation would seem to suggest she should be paying German VAT.)

Absolutely, and not just on her personal account - the whole business. If anyone should be paying tax on SL earnings, it's her and her empire. I'd love to see her try and fight this one.

Broccoli
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Carl Metropolitan
Registered User
Join date: 7 Jul 2005
Posts: 1,031
10-05-2007 10:00
From: Yumi Murakami
(And, incidentally, Anshe Chung lives in Germany, not China - although I'm not sure where ACS is registered. Even if the business is in China, the "used and enjoyed" regulation would seem to suggest she should be paying German VAT.)


AnsheChung Studios is a corporation in Wuhan, China. I strongly suspect ACS's income never touches EU shores, other than a salary paid to Anshe and her husband.
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