Real Estate Agent commission

A Real estate company jointly with an individual (another agent) closed a deal and earned AED 10000 as commission. 

However, the developer paid AED 10000 to the company bank account but the income is shared at 1:1 ratio between the company and the individual agent. 

The company raised an invoice of AED 5000 only including VAT. Will this result in incomplete tax treatment as the payment received in the bank account is AED 10K and the invoice raised is 5k.

SAJITH N01/04/2022 22:20:49

Unless the company can prove that individual agent has separate contractual obligation with developer and the company is merely receiving money on behalf of the individual, the company will need to raise tax invoice for full AED 10k.

0 Like  

Reply :

Login to reply. click here


Submit Query