South Korea Taxes Virtual Worlds
As WM has discussed before, Second-Lifers and others in the metaverse should be prepared to start paying taxes if governments follow the lead of South Korea.
As of July 1st, the NTS, Korea's national tax service started adding on VAT automatically on real-money transactions in virtual worlds.
- Sellers who do between 6 and 12 million won ($6,500 - $13,000)/half year in business will have VAT auto applied by transaction's middle-man.
- Sellers who do more than 12 million won/half year in business will need a business license and will pay the tax by themselves.
An NTS official claims the organization will be able to monitor all transactions as RTM mediators have agreed to share clients’ transaction details with the authorities.
As of July 1st, the NTS, Korea's national tax service started adding on VAT automatically on real-money transactions in virtual worlds.
- Sellers who do between 6 and 12 million won ($6,500 - $13,000)/half year in business will have VAT auto applied by transaction's middle-man.
- Sellers who do more than 12 million won/half year in business will need a business license and will pay the tax by themselves.
An NTS official claims the organization will be able to monitor all transactions as RTM mediators have agreed to share clients’ transaction details with the authorities.
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