Korea’s National Tax Service, the equivalent of the US’s IRS, has started adding VAT on real money transfers as of July the 1st, according to a report form

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($13,000)/half year in business will need a business license and will pay the tax by themselves

With the US congress having a look at how much money they can make from MMO games, this development may encourage such a move in The States. This was something that was bound to happen sooner or later, but what is more interesting is that an official from NTS said: “This is not about defining RMT legal/illegal; we don’t see any contradictory facts to Amendment for Game Industry Promoting Law – we are not about to judge if RMT is legal or not.” (machine translation, sorry)

The legality of RMT for in-game currency and items is currently a bit of a grey area, with some games allowing it and others being completely against it. There aren’t many though that actually encourage it and the industry has not given any kind of unified message one way or the other. If it comes to a court case, then if it is found that selling virtual goods without the express permission of the game owners is illegal, taxing such transactions would be very dodgy indeed. (From IM69

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