Tax is imposed on sales of local and imported goods, services, and works, except what isexempted by a specific provision
The tax is due upon the occurrence of the sale of goods or the performance of services or
work in accordance with the provisions of this law. The taxable person's use of goods or
services for personal or private purposes, or disposal of them in any legal manner, isconsidered as a sale. The tax is due on imported goods at the stage of customs clearance, upon the occurrence of
the event that triggers the customs tax, and is collected in accordance with the proceduresestablished for this purpose. This applies to every importer, regardless of their turnover
The taxable person is obligated, in accordance with the provisions of the law, to collect thetax and remit it to the Authority according to the rules, procedures, and deadlines specified, as follows:
The taxable persons required to collect the tax, declare it, and remit it to the Authority inaccordance with the provisions of the law are: - Industrial producers
- Importing traders
- Service providers and auxiliary distributors for taxable persons
- Federal and state government units that sell goods directly or through auction
Without prejudice to the provisions of the deduction stipulated in Article (34) of the law
The tax is due on the sales of taxable persons upon the occurrence of one of the following events: - Rendering of a service or sale of locally manufactured goods by the industrial producer
- Sale of imported goods by the importer in the local market, without prejudice to the tax dueupon customs clearance
- Sale of imported or locally produced goods by traders
- Sale of goods through government auctions or directly by the taxable person
- Industrial producer, trader, and service or work provider whose turnover has reachedor
exceeded the registration threshold
- Importer or exporter, regardless of their turnover
must submit an application to the Authority to register their name and details. A person whose sales of taxable goods or services have reached or exceeded the registration threshold in any financial year or part thereof after the implementation of the regulations must apply to the Authority for registration.
Voluntary Registration :
A person whose total sales of taxable goods or services have not reached the registration threshold may voluntarily apply to the Authority for registration using Form(1). Upon registration, they are subject to the provisions of the law and may not request cancellation of
registration before two years from the date of registration. The same procedures and rules apply to voluntary registration as those stated in Article (7).
The following procedures are followed for registering taxable persons :
1. The registration application is submitted on Form (1) to the tax office within the jurisdictionof the taxpayer's main office.
2. The office reviews the registration application, and if it is found that some requiredinformation is missing, the office registers it provisionally and notifies the taxpayer
immediately to complete the registration data within the specified period.
3. Completed registration applications are recorded in the register kept for this purpose at the office.
4. The Authority assigns a registration number to the taxpayer.
5. A registration certificate, as stipulated in Article (17) of the law, is issued according to Form(2), approved by the Secretary-General or their delegate, and stamped with the Authority's seal.
6. The taxpayer must display the registration certificate in a visible place at the main business location and a copy at each branch, to be clearly visible to the public at all times.
7. Every registered taxpayer must notify the Authority in writing within 30 days of any changes to the registration data, including name, address, main taxable activity, or other activities. If
the Authority approves these changes, a new registration certificate is issued with the same registration number, including the updated data, and the previous certificate is withdrawn.
If a registered person no longer meets the conditions required by the law, they may submit a written request to the Secretary-General for cancellation of registration. If the Secretary- General is satisfied with the request, they will cancel the registration effective from the last
day of the tax period in which the cancellation decision was made. The Authority will notify the applicant of the cancellation, provided they return the registration certificate.
The person must retain tax books, records, and invoice copies for two years from the date of cancellation. Every taxpayer who ceases all taxable activities or liquidates their business must notify theAuthority within 30 days of cessation or liquidation. The Authority will cancel the registrationeffective from the last day of the tax period in which the activity ceased. If the taxpayer
intends to resume the taxable activity within a year, they must immediately notify theSecretary-General. The Secretary-General may cancel the registration of a person registered at their request if it
is found they are not carrying out the activity stated in the registration application. If theperson has already claimed input tax before making any sales, they must repay it. If a taxpayer fails to achieve sales reaching the registration threshold and their registrationiscancelled while they continue the activity, tax is due on goods held at the time of cancellation.
Every taxpayer must submit a monthly return to the relevant tax office, using Form(3), showing the net tax paid or refunded on their sales and purchases of taxable goods, services, and works. This return must be submitted within 15 days of the end of the tax accounting month. The Secretary-General may extend this period for a similar period if necessary, in accordance with Article 20(1)(c) of the law. The taxpayer is required to submit this return even if no taxable sales, services, or works were made during the accounting month
For the purposes of applying Article (20) of the law :
1. The taxpayer must issue a tax invoice or manifest when selling a taxable good or providinga taxable service or work to another taxpayer, showing the value of the good or service andthe tax due. The taxpayer may use computerized invoices and manifests, provided they meet
the conditions in Article 9(1)(c) of these regulations.
2. For sales to non-taxpayers, the taxpayer may issue an invoice showing the total value of the good or service, including tax. The invoice should be in triplicate, with the original given Toth buyer and a copy kept by the taxpayer.
3. The invoice or manifest must be sequentially numbered and include: - (i) The words "Tax Invoice" or "Manifest" as a title. - (ii) Date and tax identification number. - (iii) Taxpayer's name, address, registration number, and tax identification number. - (iv) Buyer's name, address, registration number, and tax identification number. - (v) Details of the good or service, tax rate, and total invoice value.
4. The Secretary-General may modify these requirements or issue a model invoice for specific taxpayers.
5. Invoice data must be recorded in the taxpayer's register.
6. For Article 21(1) of the law, a valid invoice means a tax invoice meeting the conditions in(1)
above
Subject to the provisions of Section 14(4), the taxpayer shall add the amount of tax to the sale price of the sold commodity or service, and collect the same from the purchaser, at such rate as may be provided for in this Act.
The taxpayer shall pay in cash or electronically the proceeds of the tax periodically to the Secretary General, in accordance with the monthly return thereof, and at the same date provided for in Section 20(1)(c); provided that accountancy shall be done every quarter of the financial year.
The tax shall be paid on imported commodities at the stage of their release by Customs, in accordance with the prescribed procedure for payment of Customs duties. Final release shall not occur for such commodities before the full tax due is paid; and Customs shall not postpone the tax due or subject it to installments.
The issue of the invoice by the person rendering the service shall be deemed the event that gives rise to tax, in accordance with the provisions of this Act, with respect to services of a continuous nature. The regulations shall specify the nature of such services.
For the purposes of taxation accounting, the Secretary General may require any person engaged in commercial, industrial, professional, occupational, or service activities to use a machine, in accordance with the safeguards and conditions he may prescribe.
The Secretary General shall:
(a) Constitute a committee from concerned research and academic bodies for the purpose of issuing the machinery's annual technical manual, according to the taxation work requirements; (b) Issue the conditions and safeguards pertaining to the duties and responsibilities of the machinery suppliers and those in charge of the same; (c) Approve the machinery and validate the annual manual and its issuance.
Every person resident in Sudan who contracts with a person non-resident in Sudan, and who does not have a legal entity registered in Sudan against rendering a service or business subject to tax, shall add the tax amount to the service value or work and deposit the same with the Chamber.
Where the tax due is not paid by the taxpayer within the fixed dates, the Secretary General, or whoever he may authorize, may impose a financial sanction—specified by the regulations—for each month of delay. This sanction shall be collected along with the tax and through the same procedure.
If the taxpayer does not pay the tax due and the additional amount set forth in this Act, the Secretary General, or whoever he may authorize, may file a lawsuit before the competent civil court to recover the amount of tax or any other amounts due from the taxpayer, and collect them as a debt owed to the government, along with all legal costs.
Presentation of a certificate signed by the Secretary General, or whoever he may authorize, containing the name and address of the defendant and the value of the tax, in any suit under the provisions of Sub-section (2), shall be considered sufficient evidence that the amount of tax is due from that person. This certificate shall also be regarded as an executive deed sufficient for the court to issue a judgment accordingly. The appearance of the Secretary General, or his authorized representative, before the court shall not be required for judgment to be passed.
The Secretary General may, instead of instituting a lawsuit to recover the amount of tax due, issue an order, in his own hand, authorizing any official to attach the goods or assets of the person from whom the tax is to be collected, including any other property such as bank account balances.
Such movable property, assets, and attached effects shall be sold by public auction within a maximum period of thirty days from the date of attachment. Bank balances may also be withdrawn, after obtaining the Minister’s approval, for the payment of the tax due. All actions shall be carried out according to the rules and procedures specified in the regulations.
The value which has to be returned and adopted as a basis for assessing the tax, with respect to commodities, services rendered, or businesses subject to tax, shall be the true value in such conditions as the sale of the commodity, or rendering the service, by a taxpayer to another person who is independent from them, in accordance with the natural course of matters. Otherwise, the price of the commodity or service shall be assessed at the prevailing price or consideration in the market under normal conditions, as specified by the regulations.
The value of commodities imported from abroad shall be assessed at the stage of release by Customs, at such value as may be adopted as a basis for specifying the Customs tax, with the addition of Customs taxes and other taxes and fees levied on commodities, except for the value-added tax levied under the provisions of this Act.
Where it transpires to the Secretary General, or whoever he may authorize, that the value of the taxpayer's sales of commodities or services is different from what has been set out in his return for any accounting period, he may amend the value subject to tax, without prejudice to any other measures as may be decreed by the provisions of this Act. The taxpayer, in all cases, may present his grievance against the assessment of the Secretary General, or whoever he may authorize, in such ways and procedures as may be specified in this Act.
Where the taxpayer does not keep regular and precise account records, supported by documents, or where such records are inaccurate, or he does not keep the tax invoices, or does not present the books and documents within the period fixed by the Secretary General, or whoever he may authorize, the Secretary General shall be entitled to assess the tax for the accounting period, according to such safeguards as the regulations may specify.
(1) Where the taxpayer is not convinced by the assessment imposed upon him, in accordance with the provisions of this Act, he may present a written appeal to the Secretary General within thirty days of the date of service of the taxpayer with the assessment, on the condition of payment of 25% of the assessed tax, or such amount as the Secretary General may deem fit, whichever is lesser.
(2) The appellant shall attach, with the application for appeal, all such instruments and documents as may support his appeal and present all the data and facts concerning the same.
(1) The Secretary General, or whoever he may authorize, may, upon considering the appeal, amend the assessment as he may deem fit.
(2) Where the appellant does not accept the decision of the Secretary General, he shall be entitled to appeal against the decision of the Secretary General to the Income Tax Committee, constituted under the provisions of Section 54 of the Income Tax Act, 1986, within fifteen days of the date of his being notified of the decision, on the condition of payment of 35% of the value of the assessed tax.
The taxpayer may appeal against the decision of the Income Tax Committee within thirty days of the date of his being notified of the same, to the court having jurisdiction over administrative contests.
The Secretary General may appeal against the decision of the Income Tax Committee within forty-five days of the date of his being notified thereof, to the court having jurisdiction over administrative contests.
(1) During the tax period, the taxpayer may deduct from the total tax due on taxable sales thetax previously charged on :
(a) Returns of sales, provided that: - (i) Only tax paid on returned goods is deducted.
- (ii) Returned goods are received, recorded in the taxpayer's books, and their value (includingtax) is refunded to the buyer or credited to their account. - (iii) The taxpayer issues a dated, sequentially numbered credit or debit note with details of
the seller and buyer
(b) Purchases of goods and inputs :
The deductible tax is : - (i) Tax paid on locally manufactured goods, services, and works if all sales in the periodaretaxable, with tax invoices available. - (ii) Tax paid on imported goods in the period, as per customs documents (excluding privatevehicles). - (iii) If input tax exceeds output tax in a month, the excess is carried forward monthly until
exhausted.
Exempt Goods and Services:
1. Agricultural products sold in their natural state, produced domestically. Products are not considered in their natural state if transformed, changed, or mixed with other materials.
2. Livestock and meat (cattle, sheep, camels, goats), excluding raw or tanned hides, wool, and related products.
3. Poultry and products (eggs, chicks).
4. Fish (excluding canned or processed).
5. Milk and products (cheese, butter, yogurt), excluding imports.
6. Fertilizers.
7. Human and veterinary medicines.
8. Seeds and specified agricultural inputs.
9. Locally produced flour.
10. Bread.
11. Goods imported for diplomatic missions (per 1956 law).
12. Goods imported under agreements with Sudan granting VAT exemption.
13. Personal effects of travelers (within customs exemption limits).
15. Insurance premiums and cash claims (by licensed insurers).
16. Educational services (academic, technical, certified by authorities).
17. Medical services (human and veterinary healthcare, diagnostics...
The Secretary General, or whoever he may authorize, may require the taxpayer, or any person, by a written notice, to appear at such time and place as specified in the notice, for the purpose of questioning him regarding the commodities, services, and the tax levied thereon, as well as any other related matters.
(For the purposes of this Section, "person" means any individual who engages in commercial activity and has not previously been assigned in accordance with the provisions of this Act.)
The Secretary General may impose financial and administrative sanctions, in addition to the tax due, on any person who contravenes the provisions of this Act or the regulations issued under it, even if such contravention does not amount to tax evasion, as further detailed by the regulations.
In the event of a repeated contravention, the financial sanction provided under subsection (1) may be doubled.
The following shall be deemed as contraventions of the provisions of this Act:
(a) Delay in submitting the return and paying the tax for the period specified in Section 20(1)(c);
(b) Presenting false information about the sales or purchases of commodities or services subject to tax, contrary to what has been stated in the return, unless justifiable reasons are provided;
(c) Violation of the procedures or rules set forth in this Act or the regulations issued thereunder;
(d) Failure to notify the Chamber of any changes to the information provided in the registration application within the specified time;
(e) Hindering the officials of the Chamber from carrying out their duties and exercising their responsibilities related to supervision, inspection, review, auditing, and examining documents.
Without prejudice to any harsher penalties stipulated in any other law, every taxpayer who evades the payment of tax, or any person who aids or abets in tax evasion, shall be subject to:
Imprisonment for a period not exceeding three years,
Or a fine,
Or both penalties.
In cases involving multiple offenders, they shall be held jointly and severally liable.
The following shall be deemed acts of tax evasion and shall be punishable by the penalties provided for in Section 43:
(a) Failure to apply for registration with the Chamber within the specified time limits without sufficient cause;
(b) Selling or importing commodities or rendering services without submitting a return or paying the tax due;
(c) Illegally deducting the tax in whole or in part, in violation of the provisions and limitations on deduction;
(d) Illegally reclaiming or attempting to reclaim tax, in whole or in part, without legal justification;
(e) Presenting forged or fabricated documents or records, or false statements, to avoid paying all or part of the tax;
(f) Providing false information about sales or purchases that differ from what is stated in the tax return;
(g) Failing to issue invoices for the sale of taxable goods or services, or using forged invoices;
(h) Not reporting taxable commodities or services that the taxpayer used or benefited from for personal or private purposes;
(i) Failing to submit a return or pay the tax thirty days after the due date;
(j) Issuing tax-included invoices by a person who is not a registered taxpayer;
(k) Failing to use the designated machine for commercial, industrial, agricultural, or service transactions, when required to do so under Section 28(5);
(l) Violating the safeguards and conditions applicable to machinery importers and those responsible for using such machines.
Every taxpayer shall submit to the competent Tax Office a monthly return of the net tax paid or refunded on their sales and purchases of taxable goods, services, and works, using Form No. (3) designated for this purpose. This return must be submitted within fifteen (15) days following the end of the tax accounting month.
The Secretary General may, by a decision, extend this period for a similar duration if necessary, in accordance with the provisions of Section 20(1)(c) of the law.
The taxpayer is obliged to submit this return even if no sales were made, nor services or taxable works provided, during the tax accounting month.
The taxpayer must maintain regular accounting records and books, including:
1. Purchases register: purchase invoices and customs documents for imports.
2. Sales register: tax invoices for sales.
3. Returns register: sales and purchase returns with adjustment notes.
4. Exports register: export details, including customs certificates.
