Virtual Worlds Podcast #8 - Mad Ramblings

Join Nick Wilson and Caleb Booker for this weeks' Virtual Worlds Podcast as we talk about the hot issues in 3D for the week and explore a few mad rambling tangents along the way.

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Gomem DeSoto and Stuart Warf discussed their thoughts on VAT on podmafia.com.

With them as residents on Nowhereville, they don't pay tier directly to LL, so no VAT.

Should be interesting to see if more Americans and Euros end up in these kinds of arrangements.

Remove ur tin-foil hats guys its safe to come out of the bunker!

This vat thing is not new or a conspiracy by LL. I received this note from GoDaddy earlier this year -

"All is well with your Go Daddy® account(s). We just need a bit of information from you in order to comply with the European Union's Value Added Tax (VAT) law.

We're asking all customers in countries that assess VAT to provide Go Daddy with their VAT Identification numbers by August 2, 2007. Please enter your VAT Identification Number for each active payment method in your Go Daddy Buyer Profile.

While it does not apply to the purchase of domain names, the EU Directive requires that we add your country's VAT to purchases of most other Go Daddy products.

Once you've input your VAT ID, Go Daddy will automatically calculate the amount of tax due for the billing location(s) associated with your account(s). Those customers who do not provide the number by midnight (GMT), August 2, 2007, will be assessed the standard rate for their respective member states, payable on their next due date. We will begin assessing VAT on all applicable purchases made starting August 3, 2007 and going forward.

As you probably know, VAT is a tax levied by the EU on goods and services purchased by consumers living in member states. This tax now includes goods and services supplied electronically via the Internet (Directive 2002/38/EC).

Questions? Please call (480) 505-8877 for fast, friendly help.

Sincerely,

Warren Adelman
President and COO
GoDaddy.com"

At least GoDaddy gave some sort of warning ("starting August 3, 2007"). LL dropped this on their customers overnight and immediately. Suddenly, they are paying ~$60 more without any type of warning.

They said the equivalent of saying "Those customers who do not provide the number by yesterday, will be assessed the standard rate for their respective member states, payable on their next due date."

This is "far" different than the way GoDaddy did.