Second Life users are expected to obey the laws of their own local countries with regard to their actions in the virtual world; however, a problem can arise in countries which have tough laws regarding material downloaded from the Internet, such as pornography.
In September 2007 Linden Lab announced that, in accordance to sales tax regulations of the European Union (EU), they are required to charge value added tax (VAT) to EU residents on all money transactions involving the company.