Second Life is an internet-based virtual world launched by Linden Research in 2003. While establishing Second Life, its founders were inspired by Neal Stephenson's science fiction novel 'Snow Crahs', which describes a limitless and free world. The game promises its users a second life.

According to ArsTechnica news, the popular online metaverse platform, which is considered one of the longest-lasting games, has now announced that it will collect local sales tax on metaverse purchases from US users.

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This announcement was made by developer Linden Labs. A 2018 Supreme Court decision South Dakota vs Wayfair Inc, Et Al determined that states and territories can charge sales taxes even on products sold by online companies that do not have any physical presence in that state.

A few years ago, Linden Labs tried to create a complex tax system in Second Life where users who create more in-world objects are charged more in-world currency (because this means the user uses more server resources). The riot, organized by Second Life citizens, forced Linden Labs to change the system by charging users directly for land with a monthly fee.

   “We have done everything we can to protect our residents from these taxes for as long as possible, but we can no longer afford them,” Linden Labs said.

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In the statement, it was announced that sales tax will begin to be collected in the USA from March 31, 2022. Taxes will currently be charged only on premium subscriptions and recurring invoices such as land charges. The amount of tax charged will be clearly stated on the receipt or invoice. The company used the following statements:

   “This is news we don't like to share, but for the health of business and Second Life, we can no longer continue to bear these tax burdens. Thank you for your understanding and continued support for Second Life.”