actually there might already be examples of this
i don\t play 2nd life, but it seems that VAT is only applied to service fees and not for purchases&exchange of linden dollars.
Right, IIUC the logic there is that two individuals, who presumably aren't registered for VAT, are trading with each other, so as far as Linden Lab can tell VAT is only payable on the trading fee that the parties pay to them, not what the buyer buys from the (presumably non-VAT-registered) seller.
Somebody can correct me if I'm misunderstanding this, but technically I think VAT would be due if:
1) You're a VAT-registered business buying L$ or BTC from someone outside the EU, because you'd be "importing" the L$ or BTC.
2) You're a VAT-registered business selling L$ or BTC to someone inside the EU. However, if that EU buyer is also a VAT-registered business, they'd be able to claim back the VAT you collected from them.
Overall it seems like it can be worked around with appropriate planning, ie VAT-registered businesses need to:
1) Get bitcoins by:
a) Buying them from a non-VAT-registered seller inside the EU, and nobody pays VAT.
b) Buying them from a VAT-registered seller, who charges you VAT, which you then reclaim.
2) Get rid of bitcoins by:
a) Selling them to someone outside the EU, and nobody pays VAT.
b) Selling them to a VAT-registered buyer, charging them VAT, which they then reclaim.
Some traps for the unwary there, and maybe some interesting arbitrage opportunities for somebody...
perhaps i was not clear...
according to the linden labs website they only charge vat on the trading fee, buying services such as game service fee and virtual land, etc there is no vat collected on purchase of in game currency except for the vat on the trading service fee...
no offense to your logic but they are based in SF and can afford the best lawyers in the world...
