On November 24, 2023, the Tax Appeals Tribunal (TAT) issued a significant decision upholding the VAT exemption for commissions arising from the provision of financial services, as outlined in paragraph 1(k) of Part II of the First Schedule to the VAT Act. This exemption specifically applies when an agent acts on behalf of a licensed principal under a commission-based agreement.
- The TAT affirmed that commissions earned by agents from the provision of financial services, such as stock brokerage services, are exempt from VAT when the agent acts on behalf of a licensed principal under a commission-based agreement.
- The TAT’s decision provides clarity and certainty regarding the VAT treatment of financial services supplied by agents, fostering a more transparent and equitable real estate investment environment.
- Investors and agents should consult with legal professionals to ensure compliance with all applicable VAT laws and regulations in light of the TAT’s decision.
This legal alert is for informational purposes only and does not constitute legal advice. Consult with legal professionals for advice tailored to your specific situation. The information presented may not reflect the most current legal developments.