Taxation in the metaverse

Regardless of how they are generated, it is clear that revenues from metaverse transactions will be substantial. Recent research suggests that the market opportunity in the metaverse may be worth over $1 trillion in annual revenue. Tax authorities will need the right tools to effectively levy and collect tax arising from these transactions, or risk significant amounts falling into this virtual tax gap.

In the seventh article of our series, we explore how ‘real world’ international tax rules may be applied and adapted to effectively tax revenue and profits generated in these virtual worlds.