The world of crypto does not stand still for long. It and the world of crypto has entered into the mainstream with Web3 concepts such as the metaverse, NFTs and DAOs.
The metaverse is still largely an unexplored place for most people with no specific law that applies to it. However, that does not mean that there are no tax consequences.
The metaverse is not new, with Second Life providing a meta-like experience. Fast forward to now and there are varying differing experiences from Fortnite to Decentraland.
The metaverse is a business opportunity with projects that could enhance not only the buying and selling of games but also day-to-day activities such as in-home workouts. We are only bound by our imaginations… and tax. Not all activities may be considered a trade (for direct tax) or business (for VAT), which is a complex area that rests on case law.
While the metaverse is still (almost) new, at least by governmental timescales, it is unclear how regulation and aspects of taxation may apply to the metaverse. Our team continues to track developments and how our clients can be kept informed.
We can help guide you through the challenges that come from being at the leading edge of technology.