Value Subtracted: VAT to impact 70% of EU Residents

Residents sit for free money at Petunia, an island for Dutch Residents

I think we're about to witness a seismic socioeconomic shift in Second Life caused by real world tax policies.  Because I've just compiled the results to my survey of European Union readers, asking how the new VAT tax on Second Life fees will impact them, and the numbers are sobering: of the 200 or so in the EU who answered, 11.7% say the tax will "moderately" change their in-world activity-- while 58.8% say it'll "significantly" do so. 

The survey system I used includes a handy Google Maps API, so you can track the answers from country to country.  The "significantly change" answers seem to come most from the heart of Western Europe, while the UK, Portugal, and Eastern Europe lean towards "Not change it much".
Is that due to lower VAT rates in those countries (if that's the case), or just a reflection of individual preference?

What all the significant changes will be, precisely, is still an open question; what seems inevitable is that  Europeans will begin to buy and own less land. (Land purchases and monthly use fees now come with a VAT.) Some prime and beloved regions, like the endangered Lauk's Nest, will be saved by donors, but much of the rest will be reluctantly sold, primarily to non-EU Residents.  And then what happens?

Since Resident-to-Resident transactions do not incur a VAT, Europeans will rely more and more on L$ to rent property from non-EU landbarons. And unless the Lindens quickly create attractive alternatives, a profound cultural shift will take place: Residents from Europe will be largely transformed into a renter class, dependent on landlords from the US, Japan, Brazil, and countries beyond. 

That, or become landless vagabonds, hobos, and urchins.

Comments

[Pierre-Olivier]

Thanks for those figures and this survey.

We are organizing, tonight (20:30 - Paris Time) a meeting with resident to talk about many things including ths VAT issue.

We asked one of the best Credit Agricole's taxes expert to come inworld and give advices about this situation. (Credit Agricole invested in Stonfield InWorld during Summer, and their are really involved in SL).

I don't know if he speaks english, but I'm sure he speaks french... :-)
As we will be there too, may be we could help to relay some questions from other european countries resident ?!?

SLURL : http://slurl.com/secondlife/Riviera/60/69/27

@Wagner James : I don't want to spam your blog. Feel free to delete if it's not relevant :-)

[Interfect Sonic]

Or, EU residents could simply pay the higher prices. It will result in products made by Europeans being more expensive and less competitive, but it won't drive out everyone in Europe.