Pandora designs on VAT.
I asked a friend of mine on VAT. He's a techie who works on international service providing systems, he said "as soon as they started locating in Europe, it was inevitable that they would have to start complying with VAT. It is in their interest to charge VAT for their taxes so that they can offset the VAT they are now paying."
Gwyneth Gwyneth is fairly calm about this, but I don't think she is correct. I don't think this is a blessing, and I do think that if taxes are going to enter into the Second Life economic equation, then the paper work is about to go up.
I think cynicism reigns rightfully here, VAT came in now because now is when LL has a European presence. However, it was going to come eventually. In Europe, Europeans have to pay for their government, rather than printing dollars and asking Chinese people to pay for their government.
Likely this means that more and more people will take the road of having a US person be the point of contact, and funnel transaction through them. They can do this by paying rent to a US person, or they can form a group.