How real estate brokers in Dubai should record commission, from deal to payout

For a resale, the brokerage typically earns its commission when the transaction completes, often at the transfer. For off-plan sales, developers may pay commission in stages or only once the buyer reaches a payment milestone. Record revenue when you have earned it under the agreement, and invoice accordingly.

Do not record expected commission on deals still in negotiation. Keep a pipeline separately; the ledger holds only completed or invoiced deals.

Brokerage services are generally standard-rated at 5%, whether the underlying property is residential or commercial. The exemption for residential leases and sales applies to the property supply itself, not to the agent’s commission. A registered brokerage charges VAT on its commission invoice and issues a tax invoice to whoever pays it, buyer, seller, landlord or developer.

Worked example: an agency sells a Dubai Marina apartment for AED 2.4 million with 2% commission from the buyer. The invoice shows AED 48,000 commission plus AED 2,400 VAT, total AED 50,400. If the buyer pays by cheque on transfer day, record the receipt that day and match it against the invoice.

When two agencies share a deal, decide who invoices the client. Usually one agency invoices the full commission and pays the other its share against that agency’s own tax invoice. The paying agency records the full commission as revenue and the co-broker’s share as a cost of sales, recovering the VAT on the co-broker’s invoice.

Using the example above with a 50:50 split: your agency invoices AED 48,000 plus VAT, then receives the co-broker’s invoice for AED 24,000 plus AED 1,200 VAT. Net, you keep AED 24,000 of commission and pay output VAT of AED 2,400 offset by AED 1,200 input VAT.

Agents on employment contracts receive commission through payroll, often a percentage of what the agency keeps. Record the agent’s commission as a cost against the same deal, so each deal shows gross commission, co-broker split, agent payout and the agency’s net.

• Pay agent commission only on commission received, unless your policy says otherwise.
• Hold a clawback clause for deals that fall through after payout.
• Track each agent’s earned, paid and owed balance monthly.
• Reconcile payroll commission to the deal list before each pay run.

Developer commissions can take months. Keep a developer receivables report separate from individual clients, with the milestone each payment depends on. If a developer pays AED 85,000 on a AED 1.7 million off-plan sale only once the buyer has paid 20% of the price, the receivable is real but conditional. Chase it with the developer’s finance team using the deal reference they use.

Owners should see gross commission, net commission after splits and agent pay, and overheads, monthly. Net commission per agent tells you who is profitable once their desk, visa and marketing costs are counted. Marketing spend on property portals, often billed by foreign or local companies, should be tagged to the team or listing type it supports.

HelloBooks drafts commission invoices with 5% VAT from the deal details you give it, records co-broker bills against the same deal tag, and tracks receivables by client and developer. Ask the AI agent “what commission is still owed by developers, and on which deals?” or “what did each agent bring in net this quarter?” and it answers from the ledger. Payroll commission runs through HelloTime with journals posting to HelloBooks.

For a deal-level profitability report or a commission invoice template, email hello@hellobooks.ai or book at /book-a-demo.