This is a high level post that aims to encourage discussion as to how we improve conditions for businesses (aka the guinea pigs) attempting to build on/around the ecosystem.
It is also worth bearing in mind that there is clear guidance from parity that no employee can receive treasury funds.
As noted in @metaspan’s VAT on Services in/to the ecosystem there are a number of emerging challenges for those outside of Parity/W3F who are aiming to build a functional economy between fiat and crypto jurisdictions.
Without raising these issues, others will find themselves in difficult situations. It would be best if we could establish best practice as we go to better support these groups, and save others from the headaches we’re enduring.
Ideally this would take the form of dedicated support and guidance.
- Charging fees or setting clear margins on treasury proposals.
Without getting approval for margin on a budget, teams are pushed into the dangerous position of cashflowing work at cost.
Given the volatility of the networks, this has to date resulted in a number of ecosystem teams, including ourselves paying to deliver projects.
For some reason, this appears to be a contentious issue, and some proposers are also of the view that fees should not be included - would be great to hear views.
- Clear guidance for teams submitting treasury proposals on VAT / tax and legal status.
In general our approach has been to invoice through a company simply because of the limited liability assurances. Even with this, we’ve had flipflopping advice from our lawyers and accountants on the best approach to invoice treasuries.
It’s worth noting that goods and service taxes are also applied in other jurisdictions, for example in France it is known as TVA, and India it is GST which are chargeable at 20% and 30% respectively.
See Wikipedia for the various structures around the world.
For those contributors paid by the treasury who have not set up a company, there should be guidance, or at least discussion about how they should invoice so they don’t find themselves in difficult positions.
There are no doubt many other challenges that will emerge over time, especially as regulations become clearer in the coming months and years - but I wanted to start a discussion thread to capture those faced by contributing teams outside of the well capitalised / resourced W3F/Parity entities.