Taxing your virtual economy
by Andrew Russo 
Apr 18th 2008 at 1:00PM
Filed under: Business models, Culture, Economy, MMO industry, News items
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Logging into World of Warcraft to check the mailbox for a new treasure trove of gold is pretty normal. Logging into WoW and seeing Taxman102 spamming the trade channel about new tax laws is not very normal. In fact, some people find that more frightening than an angry raid leader deprived of sleep. The real scary thing is, two governments are actually talking about it. The US Congress sat down on the 1st of April and, despite the nature of the day, had a serious discussion on turning copper, isk, lindens, and doubloons into cold, hard, cash. Sweden also had some interesting things to say on taxing virtual transactions. What the heck is going on? Are W-4s going to start arriving from Blizzard addressed to Sirtradesalot of Destromath?
Luckily, the issue is not a problem for the players who deal solely in virtual property. For example, buying x item on the auction house for x gold. The issue affects those MMOs that utilize microtransactions as a part of their content or subscription methods. For each silver bought, there might be a small sales tax attached if the talk ever becomes reality. Make sure to keep those sales receipts next year or you could get an unpleasant knock on your door!
