Uh Oh: The Metaverse Is Already Being Slammed by Sales Tax

Remember Second Life?

The mid-2000s virtual world platform is introducing sales tax for the first time since its inception in 2003 setting what some predict will be a precedent for taxation inside the metaverse.

We have done our best to shield our residents from these taxes, but we are no longer able to do so.

Users will have to pay taxes on recurring billings by the end of the month, according to the update.

The implications for the rest of the would-be metaverses could be immense because users will have to pay property taxes on their real world homes as well as virtual ones.

Slippery Slope

The decision to charge users sales tax was made because of a Supreme Court decision.

Second Life is the first metaverse to impose taxes on its users, but it won't be the last.

With a growing focus on similar tech such as Second Life and Roblox, the decision by Linden Lab will likely be seen as a turning point.

The financial blogosphere was abuzz with explainers about the impending taxation of the metaverse, cryptocurrencies, and even NFTs.

The potential for massive in-world sales meant that sooner or later the taxman would come knocking.

It is unlikely that the other metaverses will be able to avoid taxing their users now that the box has been opened.

Nothing is certain but death and taxes.

Sales tax on U.S. purchases in Second Life.

There is more on the brave new world.

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