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Interesting discussion in Germany about who should pay the agent commission. German Football clubs fear that a recent court decision might result in tax liabilities up to EUR 150 Mio. from the last years. Tax authorities believe that commission payments to agents should be borne by the player and not the football clubs. FIFA confirms that an agent can only represent one side in a transfer deal, either the player or the club. Usually the agent negotiates the deal/salary on behalf of the player. In this case the club can not deduct the commission payment as cost because it is a payment on behalf of the player for services rendered to him. Further, the club is not able to claim the VAT. In the worse case scenario, clubs will be confronted with additional social security and tax payments due to the fact that such commission payments should have been made from taxable income of the player. Source: http://fussball-geld.de/bfh-spielervermittler-arbeiten-nicht-fuer-vereine/
Fussball Geld: Gehälter der Bundesliga, Spieler, Trainer und alles was mit Fussball und Geld zu tun hat