Tax Reporting Challenges and Sustainability Concerns in VeBetterDAO: A Call for Enhanced Data Export Solutions

VeBetterDAO
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Now that I have registered here, I want to take the opportunity to address a significant problematic aspect regarding VeBetterDAO: tax treatment.

In Germany, Austria, Switzerland, France, Spain, the USA, and Great Britain, the accrual principle generally applies when receiving crypto assets. This means the assets must be recorded for tax purposes at the time of receipt and taxed accordingly.

I personally use Blockpit for my crypto taxes. However, neither Blockpit nor Coinpanda nor most other providers can retrieve the relevant tokens via the API of Vechain Explorer since it only displays its native tokens. One cannot expect the operators to incorporate a paid integration via VechainStats into their system. Ethereum, Binance Smart Chain, Polygon, and similar networks readily provide all coins listed on their chain via their APIs, also available as CSV.

In the case of VeBetterDAO, the following problem arises: assuming a large number of users utilize VeBetterDAO, they would all have to turn on their PC to maintain an Excel table with the inputs and outputs through VeBetterDAO for their tax obligations under the current system. This is neither sustainable nor sensible and would negatively impact the indirect COâ‚‚ footprint of VeBetterDAO.

After the update to the new version, the profile was significantly enhanced; among other things, the entries of rewards and the XEarn applications are listed. I think it would be easy to expand this further to allow users to extract their data. It would be sensible to make the address used by Vedelegate exportable as well.

Therefore, either the Vechain Explorer should be updated to current standards—for example, Blockpit and similar services have difficulties cleanly including gas costs in a transfer—or VeBetterDAO and Vedelegate need to provide a way to export one’s blockchain data as an Excel table for tax purposes.

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Does this one help you? It works for VET addresses. Was recently announced via X

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No, Cointracking is not an adequate solution. One doesn’t simply switch their crypto tax provider, and there are several providers in this area like Blockpit, Coinpanda, etc. Although Cointracking offers many features, the user experience is insufficient.

Furthermore, the issue isn’t just about users who cannot properly prepare their tax data. dApp operators also need to account for these data in their bookkeeping on a much larger scale.

dApp operators are entrepreneurs and thus must first record the weekly income from the pool as revenue. Subsequently, all tokens issued to users must be recorded as expenses. The tax office usually requires the complete list at the time of token issuance, for example, as a reward for using the dApp. In some countries, interim profits are also recalculated.

Therefore, the recommendation to provide an option to export data is of high value not only for us users but also for the operators.