Huh. Taxed on what basis? You buy it with your already income taxed money, and the company reports it as income which is then again taxed?
It’s like buying a gift voucher. Or maybe foreign currency, but usually you are only taxed on the gains once you sell them, but you can’t sell in-game currency… What else would you like to tax? What would you even audit? Hey tax authority, I have 3 million gold coins, 2486 diamonds and 4 speed ups in clash of clans, do you want screenshots? Do I just send you 10% to your clan?
In-game currency is annoying and bad, but I don’t get what you want to do here.
It would likely lead to a lot of issues. The games companies would need licences like a bank. They would need to keep it secure and have funds availabke to offset a run. It would likely also mean that players would be able to refund unused cash.
If they change the value in game, it might lead to gains which are taxable or losses which are possible to offset.
What if all in game currency that can be bought with money, was subject to currency laws and required to be audited and taxed.
That would hopefully put an end to that crap.
Huh. Taxed on what basis? You buy it with your already income taxed money, and the company reports it as income which is then again taxed? It’s like buying a gift voucher. Or maybe foreign currency, but usually you are only taxed on the gains once you sell them, but you can’t sell in-game currency… What else would you like to tax? What would you even audit? Hey tax authority, I have 3 million gold coins, 2486 diamonds and 4 speed ups in clash of clans, do you want screenshots? Do I just send you 10% to your clan?
In-game currency is annoying and bad, but I don’t get what you want to do here.
It would likely lead to a lot of issues. The games companies would need licences like a bank. They would need to keep it secure and have funds availabke to offset a run. It would likely also mean that players would be able to refund unused cash.
If they change the value in game, it might lead to gains which are taxable or losses which are possible to offset.
Discourage in-game currency I think is the goal
You could charge VAT on it in the countries where that’s applied.