so commission, payment and invoices. Okay? So let’s start. So in order to get, some of you may already know this, but in order to get your commission payments, there actually consists of three components that is the correct way of collecting commission payments.
So the first thing is the invoice. So we need an invoice to present to the seller or the person who we are going to collect the payment. And then the next thing is the receipt.
And the third thing is that the tax invoice. And you might think that, hey, there are just two, why are there three on the screen? I’ll explain you in a bit and then you’ll probably go oh my goodness, no, not this topic. But it’s really important for you all to know and understand what all these component means and to be able to understand getting commission payments and getting yourself paid better.
So an invoice, as you see, this is the typical invoice that you will see when we issue the invoices to you. And what is an invoice? First, an invoice is issued by the real estate agent to a property seller detailing the commission owed and the detail of the property here specify the rental price, agreed commission rate and total commission due and payment terms. They’re all specified here on the invoice proper.
Invoice must have all these information. That’s why we want to collect as much information from you and as accurate as possible because this is required by the revenue department. Another thing that is important for an invoice is to serve as a request for a payment, as you may already know, and for most of you who don’t know, it’s a record of the owed amount to the company.
When we issue an invoice, it is recorded in the company that this figure is owed to the company. So it’s not just an invoice to get the money, but for the company, it’s a recording of what’s being owed to the company as well. So whenever you write your commission, it is quite important that you get this number correctly because we record it in the company system for our revenue and also to pay you.
Also important that this part is for sellers only. It can’t be buyer just because by Thai law in Thailand, the marketing, the real estate business is that the seller or the landlord pays us the commission. So the audit will only recognize this service commission, sales commission from seller who is paying us only.
Okay? And another thing that you should need to know about the invoice is the VAT 7% VAT. Most of you get it incorrectly, so I’m not sure if you understood the VAT on the invoice correctly. In the invoice, there are two options of VAT.
One is included and two is added on top. Most of you usually confuses the two. So I would like to explain this to all of you.
For example, the commission you’re receiving is 100,000 baht. Okay? So if it’s VAT included, this is what the invoice will look like. You see, the commission will be less than the total amount here because part of it is already deducted as VAT.
Which means that in the 100,000 commission that you’re collecting, part of it will belong to the VAT. And here is a sample of what VAT added on top. Looks like.
Your total commission is 100,000 baht. You add 7% VAT on top, so you will be invoicing the seller or the landlord more because the VAT is added. What you will get paid as commission to your agent commission will be calculated from this because VAT is considered the company’s expense.
So you will be receiving less if VAT is included. So if you want to get more commission into your pocket, try and have the seller or the landlord pay you with VAT added on top because it’s a lot of money and it belongs to the government, not our revenue. Next, the invoice.
When we create the invoice and the sales admin create the invoice, we create the invoice as soon as you fill the deal sum form. Once you do fill in the deal sum form, we have your information, we will key it in. And if we see that there are no mortgages, if we see that the deposit is refundable, then we don’t approve the invoices, right? But if the deposit is non refundable and we think that this will go through, we will do the invoice and approve it.
Okay? We will approve it. Once we approve the invoice, as I mentioned, it will be in your back end and you can download it whenever you need it. Because if you see it’s as approved, you can search this column by the pop deal number.
The end of the pop deal number. You just search it here and your invoice for that particular deal will pop up. And you can use this I to open it up and download it just so that you don’t have to request for commission.
Invoice commission, invoice commission invoice. It’s usually there, unless you didn’t fill in the deal sum form or it is still under mortgage and we didn’t know that the mortgage has already been approved, then it might not be approved yet, but for most part it’s all approved. Without the invoice, we cannot issue the receipt.
If you did not fill the deal some form and some of you didn’t and you got paid and we don’t know that there is a deal going on and you ask for us for a receipt. We cannot do that because we don’t know there was a deal because you didn’t submit the deal form in the first place. So if you want something to be speedy, you get paid speedy.
You want things to get to your commission sheet speed. As soon as possible, please fill in the deal sum form as soon as your deposit has been received or you’re sure that the deal is going through. Wait, let me just clarify that.
You do the deal sum form as soon as the spa is signed and the deposit is received. And for rental, you do that when the lease agreement is signed. So as soon as those two is done, please fill in the deal sum form.
Next component is the receipt. What is the receipt? A receipt is a written Acknowledgment that specifies a payment has been received. So once you receive the payment, we normally issue a receipt.
And then there is something called tax invoice and you get confused between invoice and tax invoice and Receipt. So you don’t know the difference. I just explained to you.
The invoice invoice is to collect the money. Receipt is the Acknowledgment that we have received the money. And then what is tax invoice? Right? Tax invoice is actually an official document by a registered business, which is Bazwas that confirms that the service has been done and that we have charged the Bat.
That is called tax invoice. It is used for tax reporting and verification purposes with the Revenue Department. This tax invoice is more important than the receipt because this is what we give to the Revenue Department.
So this is for some I have to say for some company, the receipt and tax invoices are given separately. Like, okay, we received the money from you, we received the check from you. It’s an acknowledgment.
So we give out a receipt. Then after the payment is in the bank, the company will issue a tax invoice, verifying that the VAT has been deducted from what we received. Okay, this receipt is just receiving money.
But tax is a verification that we have deducted the VAT and that we have paid the VAT with the money that we received. It’s different, two different things. But with Fazwas we combine it into one paper.
Tax invoice and receipt. Okay? Tax invoice and receipt. So this is the difference.
And tax invoice must be submitted to the revenue each month. So the month of receive the money and the tax invoice has to correspond. Like, for example, if we receive the money in August, we have to issue the tax invoice in August.
We cannot issue it in September, October, because we will be fine for that. So that is why it is very important that you report to us when you get paid. As soon as you get paid, okay? Because if we missed that month and the money came in the next month, then we have to have penalty.
So things to be aware of, because I’m running out of time. Things to be aware of if we received any commission payment, please don’t delay deporting it. If the tax invoice and receipt was issued to you for a check collection, you should cash it within the day or by the next day before noon.
Because if you hold the check, we already issued you the tax invoice receipt. It was meant to be received in August, but you’re carrying the check and then say, okay, I don’t care, I’ll cash it in, let’s say the next day. And the next day is already September 1.
We get fined for that, right? Because tax invoice to receive the check. It says that you received the money in August, but hey, you cashed it in September. It’s a different month, so please don’t do that.
It’s very important that you are aware of this because there has been cases where that’s been done and finance is not happy about it. Things not to do. Please don’t wait until last minute for the deal or after the commission is paid to complete the deal form.
Please don’t sleep quiet when the deal is completed, when you receive the commission from owners or landlord, don’t keep it to yourself. If the payment is made, please let us know. How do you let us know? This is how you should do.
When the deal has been completed, transferred or moved in, you have been paid and the deposit has been or there is a deposit in our account that needs to be offset to your commission, please submit the transaction request form and update the deal. Update the status as deal closed. I will share that link again in the follow up email so you can save the link.
And if your deal is done, it’s paid, money is in the bank. Please complete this form so that we can do the system that we need to do internally to be able to pay you as soon as possible. If you’re not sure if the form that you filled reached us, you can text message sales admin on Google Chat and ask them to confirm that we actually received that status deal as close so that you make sure that you get paid on time.
Okay? I cannot stress that more. If you use this, everything will be perfect for you. Okay? So I think that’s it for now.
I’m sorry. I wish Power calls for me could be longer so that I don’t have to rush my slides. But that’s all I have for you guys.
And thank you for listening, really, thank you. And if you don’t understand anything, if you still have questions, please message me privately and I can explain to you more about what I just said. Okay? Thank you everybody.