Alex Baulf, senior director global indirect tax at Avalara, talks tax must-knows for retailers operating in the metaverse
The Metaverse continues to attract retailers across the globe. In a recent survey of 1000 retailers in the UK, US and India, Avalara found that 86% of retailers already consider the metaverse an important channel for e-commerce. Moreover, many retail businesses are already looking to the Metaverse as a viable commerce channel – with almost 31% planning to prioritise virtual shopping in 2023. Yet, whilst the prospects of a virtual retail is tantalizing for many retailers, it’s worth noting that there is no escaping tax obligations – not even in the Metaverse.
Governments around the world are already considering tax activities within the metaverse. However, much like the constantly expanding and changing virtual world itself, this is a work in progress. Those retail businesses which proactively start to navigate the virtual tax landscape for themselves, will get ahead in a market which will become increasingly competitive.