 | In-world taxes could hit SwedenApril 18th, 2008 |
Not sure how I missed this before!
Sweden moves to tax in-game transactions | Virtual Economy Research Network
Transactions between participants in a virtual world, where the deal is about the sale of a “product” or a “service” against reimbursement in an internal currency, should be considered, according to the Swedish Tax Agency’s ruling, [actual] sales of electronic services, if the internal currency can be exchanged to a valid legal means of payment. If the internal currency cannot be exchanged to money, the transactions should not be considered [actual] sales.
Edit: to be clear, the reason this is important is because it refers to taxing in-world earnings prior to cashout. Limited to virtual currencies with a cashout mechanism, but still — the line isn’t drawn where the virtual currency becomes “real.”
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