[MUD-Dev2] [BIZ] Taxes?

[Ren Reynolds]

On 18 Jul 2008, at 17:45, Andrew Budd wrote:

> Dana V. Baldwin wrote:
>> Do you charge taxes for your MUD/MMO? An "interesting" discussion has
>> popped up around the office wondering if we are responsible for
>> charging state sales tax to our customers if they are located in Texas.
>> 
>> Anyone have any experience with this?
>> 
>> AFAIK WoW is the only game that I can recall playing where I
>> payed taxes. They come in at $16.08 or some such where LotRO comes in at
>> a straight $9.99.
>> 
>> Any help or guidance would be greatly appreciated.  

> I believe to be taxed as a good (for sales taxes) it has to be "tangible."
> Typically it's "tangible personal property" or a service sold at "retail."
> In the end, there is significant variation in sales tax laws so it would
> really depend on what state your in, and a lawyer or accountant in that
> state would probably be the best person to   answer the question.  I do
> think that you and your customer both have to   have a taxable presence in
> the state in question in order for the state's   sales tax to apply,
> however. 


If you have customers in the UK then I think VAT will apply to
subscriptions - there is probably a similar thing for other EU
countries.

ren