Tax levied on commodities and services
Tax shall be levied, upon sales of local and imported commodities,
services and business, save as may, by special provision, be
excluded.
Tax shall accrue, by the verification of the fact of sale of the
commodity, rendering the service or performance of the business,
in accordance with the provisions of this Act; and there shall be
deemed as sale, use of the commodity, or benefiting of the
service, by the tax payer, in special, or personal purposes, or
disposal thereof, by any of the legal disposals.
Tax shall accrue, with respect to imported commodities, at the
stage of their being released, by the Customs, by verification of
such fact, as may give rise to the Customs tax, and be collected, as
to such measures, as may be prescribed, with respect thereto; and
such fact shall be verified in respect of every importer, however the
turnover thereof may be .
The taxpayer is obligated, in accordance with the provisions of the law, to collect the tax and remit it to the Chamber in accordance with the rules, procedures, and deadlines stipulated, as follows:
The taxpayers obligated to collect, declare, and remit the tax to the department in accordance with the provisions of the law are:
Industrial producers.
Merchants.
Importers.
Service providers and distribution agents assisting the taxpayers.
Federal and state government units that sell goods directly or through auctions.
Without prejudice to the provisions of the deduction stated in Article (34) of the law.
The tax is due on the sales of taxpayers upon the occurrence of any of the following events:
Providing a service or selling locally produced goods by the industrial producer taxpayer.
Selling imported goods by the importer in the local market, without affecting the tax liability when the goods are released from customs.
Selling locally produced or imported goods by merchants.
Selling goods through government auctions or directly by the taxpayer.
Registration mandatory'
The National Govermental Units and the State Government that
deal in the sale of commodities and every person, the turnover of
whom, in the financial year prior to the date of coming into force of
the provisions of this Act, reaches the amount of one hundered
thousand SDG, and more, or any person, the turnover of whom
reaches, after the coming into force of the provisions of this Act
such amount, or any importer, or exporter, however the turnover
thereof may reach, shall apply, to the Chamber, for the registration
of his name and data, on the form prepared for this purpose, within
such period, as the Secretary General may specify; and the
regulations shall specify the form of the application form, and such
data, as have to be entered thereon, the conditions, rules and
procedure concerning registration.
A person , who is not charged with registration, may voluntarily
apply for his registration, in accordance with the provisions of this
Section . In case of his registration, he shall be among the tax payers,
subject to the provisions of this Act, as of the date of registration
thereof.
A taxpayer shall:
Inscribe a tax bill upon the sale of any commodity, rendering a service, or carrying out any business, in accordance with the provisions of this Act; and the regulations shall specify such rules and procedures as may guarantee the regularity of the bill and facilitate the control and auditing thereof.
Keep accurate and regular accounts, records, and books, wherein there shall be entered, consecutively, at the times thereof, the particulars of sales and purchases, the value of the same, and such tax as may have been collected, and all such operations as may be conducted thereby, supported by accurate documents and bills. Such records and copies of bills referred to in paragraph (a) shall be kept for a period of five years following the end of the financial year in which the entry on the records has been made.
Present a monthly return to the Secretary General, detailing the tax due, on the form prepared for this purpose, within fifteen days following the termination of the accounting month. The Secretary General may, by a decision made thereby, extend such period for another similar period where necessity requires the same.
Present the return, provided for in paragraph (c), even though he has not achieved sales, or rendered services subject to tax, within the accounting month.
Where the taxpayer does not present the return, provided for in paragraph (c), by the date fixed for it, the Secretary General shall be entitled to assess the tax for the accounting period, together with showing the bases on which he has relied in making the assessment; without prejudice to legal responsibility in all the same.
No taxpayer shall fill, or use, any bills, for any commodity, or
service, unless the bills are endorsed by the Chamber.
No person, or printing press, shall print any manifesto bills, in any
of the means of printing, unless he obtains a written approval from
the Secretary General, or whoever he may authorize.10
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.
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 taxpayer may, when calculating the tax, deduct from the tax due on the sales of commodities and services, the amount of tax previously paid on the returns of his sales, the tax previously paid on his inputs, and the tax charged on sold commodities—based on the taxpayer's knowledge—at each stage of the distribution process, in accordance with the limits, terms, and conditions specified by the regulations.
In cases of export, where the deductible tax exceeds the tax due on the taxpayer’s domestic sales, the Secretary General shall refund the difference, following the procedures specified in the regulations.
(1) Notwithstanding the provisions of Chapter III, the following commodities and services shall be exempted from tax:
(a) With respect to commodities:
(i) All agricultural products sold in their natural condition, as specified by the regulations;
(ii) Cattle, meat, poultry and their products, fish, milk, and dairy products;
(iii) Fertilizers;
(iv) Seeds;
(v) Insecticides and herbicides;
(vi) Drugs for human and veterinary use;
(vii) Locally produced flour;
(viii) Bread;
(ix) Imported goods exempted from taxes and fees under the provisions of the Immunities and Privileges Act, 1956;
(x) Goods imported under agreements with the Sudan Government that provide for exemption.
(b) With respect to services:
(i) Financial services, including the services provided by banks, investment companies, financing funds, and the sale of shares, bonds, and stock;
(ii) Insurance business;
(iii) Educational services;
(iv) Medical services;
(v) Lease and sale of real estate intended for private accommodation, in such a manner as the regulations may specify.
(c) The regulations shall determine the types of services set forth in sub-paragraphs (i), (ii), (iii), and (iv) of paragraph (b).
(d)
(i) Such commodities and services as the Council of Ministers may exempt by an order issued upon the recommendation of the Minister.
(ii) The Council of Ministers, upon the recommendation of the Minister, may revoke any exemption granted under the provisions of paragraph (i).
(2) Notwithstanding any specific provision in any other law that explicitly or implicitly provides for value-added tax exemption, no commodity, service, or business shall be exempted from the tax except in accordance with the provisions of this Act.
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.
