Property - GST on agent commission

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(Initiate)Initiate

25 May 2024

Hi there,

We sold our land and business with a total sale proceed of $1m ($700k paid to company A for the sale of land, $300k paid to company B for the sale of business).
We engaged an agent who charged commission + GST based on total sale proceed of both business and land. The commission was deducted from the deposit received by company A & B. Total commission paid to the agent is $27,500 inc. GST (GST amount is $2500)
Total commission paid by company A is $22,000 inc. GST. GST amount company A is eligible to claim is $2000
Total commission paid by company B is $5,500 inc. GST. Total GST amount company B is eligible to claim is $500.
Agent only issued 1 invoice for the $27,500 commission paid, addressed to company A.

Can company B still claim the $500 on its BAS return in this case? If not, what are the alternatives so company B can claim the GST amount? Can company A issue a tax invoice to company B for the $5,500 commission so that company B can claim the $500 GST, even though Company A didn't incur the $5,500 commission as it was deducted directly from the amount paid to Company B?

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