FYI: For swedish ppl: VAT ("moms") on everything sold with a profit

[Konve]

EDIT: This has been covered before, please see the below threads instead:
Moms (VAT) Problems
Mindark answers Skatteverket

Anyone who has the newspaper Nyteknik can read today how the swedish IRS ("skatteverket") has decided that you have to pay VAT, or moms in swedish, on everything you sell with the intent to profit.

The article is really about SL but there's a list of other universes where the same idea applies, and Entropia is top of the list.

I just made a search and it seems they have added it to their web also.
http://www.nyteknik.se/nyheter/it_te...icle364320.ece

(It's in Swedish)


Right, time to keep track of every trade I do, I guess. Or I'll just ask, whoever I am trading with, to hand me some ammo or boms from the TT as payment - it's not money, right?

[Kerham]

Fortunately enough, you don't have money in EU. The alternative is that you have money, then you have property.

[Rumsponge]

That would be hilarious. Send them a complete profit and loss statement for everything you sell in EU on a daily basis. How long do you think it would take them to do away with the law?

[Konve]

Originally Posted by Rumsponge

That would be hilarious. Send them a complete profit and loss statement for everything you sell in EU on a daily basis. How long do you think it would take them to do away with the law?

I'll go trade with a soc mate, 1 PEC back and forth. How many receipts can I make in an hour?

[kira-red]

well, according to the EULA, you don't actually own anything in EU. also, you have the right to convert any PEDs you possess in game into hard currency.

so, until you actually do this, the point is rather moot.

now, if it was me and the governemnt revenue service felt that I should be taxed on these funds, I'd have a nice long list of all the expenses I incurred to obtain these funds.

at that point, I'm pretty positive that I'd be receiving a tax credit. this would likely be true for most people.

I've been keeping records, just in case of this very thing.

[Hally]

Another good example of what happends when really confused people from lat century gets to decide, whats next poker players having to pay earning on each hand won and get deduction on the hands lost. It will allways be about how much money you withdraw and how much money you deposit and finaly if its gambling or not.

[Malacalypse]

Question is if MA pay VAT, they are selling a service right? Or are they just holding on to our money? Wouldn't like an extra 25% increase in losses to cover VAT...

[aridash]

we covered this back in April when it was first announced (i learnt lots of swedish words). theres even a quote from Jan some where from an article. MA are ignoring it and the swedish tax office position is that in principle (ie using existing legislation) you will be liable for VAT, but since theres no mechanism in place to track trades, its a bit unenforcable.

at least for now.

(please bear in mind this is not about income tax, its VAT which is similar to sales tax in the US and elsewhere, and you cannot offset losses before we have a dozen comments to that effect)

[Acronoid]

Lets state EU as gambling, and make it tax free

[Konve]

Originally Posted by Malacalypse

Question is if MA pay VAT, they are selling a service right? Or are they just holding on to our money? Wouldn't like an extra 25% increase in losses to cover VAT...

Well as far as I understand Mindark's business model is like such:

+ Deposits
- Running costs and other costs
- Withdrawls
= "profit"
- VAT and whatever else of the sort
= Profit

("Decay" of items has nothing to do with it, blatant lie as far as I know. Just read their financial reports. I'm not saying Mindark can't cover all the ingame value, though.)

Edit:

Originally Posted by aridash

we covered this back in April when it was first announced (i learnt lots of swedish words).

I'm sorry my searches found nothing, but I was mainly searching for new stuff related to nyteknik.

Edit2: I'm going to close my thread and refer to an old thread instead.