Sudan VAT Guide 2026

Overview — VAT System in Sudan

Sudan's VAT is a broad-based consumption tax administered by the Sudan Tax Authority (STA). It applies to most goods and services supplied in Sudan, with specific exemptions and zero-ratings. VAT is charged at each stage of the supply chain, with businesses entitled to recover input VAT paid on their business purchases. The final consumer bears the full cost of VAT. VAT returns are filed monthly. The standard rate of 17% is moderate by regional standards.

Sudan operates a destination-based VAT system — goods and services are taxed where they are consumed. Imports are subject to VAT at the border (collected by Customs), while exports are zero-rated to maintain international competitiveness.

Standard Rate — 17%

The standard VAT rate in Sudan is 17%, applicable to the vast majority of taxable goods and services. Key characteristics:

• Applied to the taxable supply value (excluding VAT itself)
• Input VAT on business expenses is creditable against output VAT
• Excess input VAT (credit position) may be carried forward or refunded
• Imports are subject to 17% VAT at customs, plus potential customs duties

Zero-Rated Supplies (0%)

Certain supplies are zero-rated, meaning no VAT is charged on the sale, but the supplier retains the right to recover input VAT on related purchases. Zero-rated supplies include:

• Exports of goods and services — all exports outside Sudan
• International transport — freight and passenger transport to/from Sudan
• Goods supplied to free zones and special economic zones
• Gold and precious metals supplied to the Central Bank of Sudan
• Certain supplies to diplomatic missions and international organisations

Exempt Supplies (No Input VAT Recovery)

The following supplies are exempt from VAT, meaning no VAT is charged but the supplier cannot recover input VAT on related costs:

• Basic food items — essential staple foods (bread, sorghum, millet, milk, oil, sugar, tea)
• Healthcare services — hospitals, clinics, and medical consultations
• Education — public and private educational services
• Passenger transport — public transport services
• Financial services — banking, insurance, and credit services (Sharia-compliant)
• Agricultural inputs — fertilizers, seeds, and pesticides

VAT Registration Threshold

Businesses with annual taxable turnover exceeding SDG 1,000,000 are required to register for VAT. Key points:

• Registration is mandatory once turnover reaches SDG 1 million in a 12-month period
• Voluntary registration is permitted for businesses below the threshold
• Non-resident businesses making taxable supplies in Sudan must register regardless of turnover
• Each registered taxpayer receives a VAT registration number

VAT Returns and Filing

VAT returns are filed on a monthly basis. Key compliance requirements:

• Monthly VAT returns are due within 30 days of the end of each month
• Returns report taxable sales (output VAT) and taxable purchases (input VAT)
• Net VAT payable must be remitted with the return
• Excess input VAT may be carried forward to the next period

FAQs

Is VAT the same as the old sales tax?

No, VAT replaced the General Sales Tax in 2013. VAT allows for input tax credits throughout the supply chain, reducing the cascading effect of the old sales tax system.

Can foreign businesses register for Sudanese VAT?

Yes, foreign businesses making taxable supplies in Sudan must register for VAT. Non-resident businesses may be required to appoint a tax representative in Sudan for compliance purposes.

What is the penalty for not registering for VAT?

Failure to register for VAT when required can result in penalties including fines and potential criminal liability for deliberate evasion.

Disclaimer

This guide provides general information about Sudanese VAT for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Sudanese tax advisor or the Sudan Tax Authority directly for advice specific to your situation. InvestmentKit does not provide tax advice.