An exclusivity agreement prevents the seller from using the buyer`s offer as equivalent to an insurance policy, so that the seller can get higher offers elsewhere. It will also give the buyer time to perform due diligence and negotiate the agreement without the constraints and constraints that would remain if there were competing buyers. This chapter discusses the amounts received through exclusivity agreements. Under these agreements, distributors attach themselves for several years to a supplier of goods or services for a lump sum payment and/or periodic payments. This Q-A examines a scenario in which the landowner (who is otherwise registered for VAT (VAT) has chosen to tax the land for VAT purposes. Rural activities are not clear. The landowner also appears to have reached an agreement under which he will negotiate only one sale of the land with the other contracting party, who pays a fee for that privilege. If a sale results from this agreement, then the tax will reduce the selling price. If the sale is not due to a lack of ownership or because the owner of the land violates the contract, the tax is refunded. If the sale is not made for other reasons, the owner of the land retains the royalty.

The effects of an exFee on VAT should be taken into account before an exclusivity agreement is reached. The details of the main money and exclusivity agreements may not always be at the forefront when the parties focus on the overall picture of a business opportunity, but both sides should take a second look and take into account not only the specific conditions of these contracts, but also the potential tax impact. The most important factor in determining the VAT position is the examination of the terms of the exclusivity agreement and the amount of ExFee financing. Is this an idea for a delivery? If so, what offer? Should ExFee be deducted from the down payment or purchase price as part of a future sales contract? Is it called included vat/exclusive amount? If ExFee is paid by a buyer in return for the seller agrees not to negotiate the sale of real estate with other parties during the exclusivity period, then a prudent VAT position is that the standard VAT rate on ExFee is generated.