Taxation and video games are intertwined and affect each other: businesses and players are affected by tax legislation while taxes are, in turn, represented in video games and virtual environments. This article addresses the representation and relevance of taxation in the video game environment, its design, and assessment from a tax perspective. Here we show that video game companies often misrepresent taxes in video games, depicting them as unjustified obligatory payments without a fiscal nature. Such misrepresentations entail negative connotations for users devaluing the taxation concept. Thus, video games design should embed taxation in virtual economies in a more accurate manner. Also, the article outlines how in-games taxation may overlap with real-life tax obligations of players. There is no common position on tax implications of earnings in virtual environments among legislators and researchers. Currently, the gaming industry catches up with technological developments very fast and often promotes them. It will cause more tax issues related to activities in the virtual environments in the future. Thus, these issues should be addressed in a timely manner.