By Greg McNevin
In a bid to make sure companies like IGE are paying their dues, the South Korean government has just imposed a new tax on the sale of virtual goods.
In a move that could ring the death bells for many gold farming operations, the Korea National Tax Service kicked off the value-add tax on virtual asset sales at the start of this month. The department says it will be monitoring the relevant virtual transactions, although it is unclear exactly how it will go about this.
“Sellers who do between 6 million (£3,245) and 12 million (£6,490) won/half year in business will have VAT auto applied by transaction's middle-man” summarised im69.com. “Sellers who do more than 12 million won/half year in business will need a business license and will pay the tax by themselves.”
It’s all a bit murky still really, particularly considering the government will be collecting tax on sales of virtual items that still ultimately remain the property of the game developer. Regardless, the decision remains a landmark in the evolution of virtual economies.
Taxing virtual items is fine by SPOnG though, just as long as we can pay with gil, gold, duckets or whatever other virtual coinage we have to have rattling around our virtual pockets.
In a bid to make sure companies like IGE are paying their dues, the South Korean government has just imposed a new tax on the sale of virtual goods.
In a move that could ring the death bells for many gold farming operations, the Korea National Tax Service kicked off the value-add tax on virtual asset sales at the start of this month. The department says it will be monitoring the relevant virtual transactions, although it is unclear exactly how it will go about this.
“Sellers who do between 6 million (£3,245) and 12 million (£6,490) won/half year in business will have VAT auto applied by transaction's middle-man” summarised im69.com. “Sellers who do more than 12 million won/half year in business will need a business license and will pay the tax by themselves.”
It’s all a bit murky still really, particularly considering the government will be collecting tax on sales of virtual items that still ultimately remain the property of the game developer. Regardless, the decision remains a landmark in the evolution of virtual economies.
Taxing virtual items is fine by SPOnG though, just as long as we can pay with gil, gold, duckets or whatever other virtual coinage we have to have rattling around our virtual pockets.
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Comments
Joji 9 Jul 2007 13:29
1/2
This is worrying, because I feel it will drive farming and such underground to IRCs etc. There's the physical loop whole. What's to stop gamers from selling the stuff after burning them on CD/DVD and posting them? Nowt.
deleted 9 Jul 2007 14:20
2/2
@Joji
Just the same as anything else in life there are always people willing to break teh law or go underground to save a few bucks and just like life some will get away with it others wont!
Just the same as anything else in life there are always people willing to break teh law or go underground to save a few bucks and just like life some will get away with it others wont!