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being taxed. If a service is taxed in the jurisdiction under the “use and enjoyment” provisions, a non-established supplier of the service may be required to register for VAT in every jurisdiction where it has customers that are not taxable persons. In South Sudan, no services fall under the “use and enjoyment” provisions.
Transfer of a going concern. Transfer of going concern rules do not apply in South Sudan. As such, ST applies to all sales of a business or part of a business capable of separate operation including assets.
Transactions between related parties. In South Sudan, there are no services that are subject to the “use and enjoyment” provisions.
C. Who is liable
Tax registration in South Sudan is universal for all taxes. Each legal person is required, if liable, to register for ST. This is where any persons who manufacture goods or supply prescribed services (e.g., hotel, restaurant and bar services, telecommunication services and financial services) are subject to ST.
Exemption from registration. The South Sudan ST law does not contain any provision for exemption from registration.
Voluntary registration and small businesses. The ST law in South Sudan provides for mandatory ST registration for businesses supplying specified services worth more than South Sudanese pound (SSP)12,000 per year. Whereas for local producers the registration threshold is set at supplies worth more than SSP100,000. A business may register for tax including ST if its taxable turnover is less than SSP12,000 for specified services and SSP100,000 for local producers.
Group registration. Group ST registration is not allowed in South Sudan.
Fixed establishment. In South Sudan, there is no legal definition of a fixed establishment for ST purposes. However, the permanent establishment rules that apply for direct taxation also apply for ST, as the law allows for use of the prevailing Organisation for Economic Co-operation and Development (OECD) and United Nations (UN) models.
Non-established businesses. All businesses, including those that are not established, are treated equally for tax purposes. Therefore, there are no special rules for non-established businesses. However, for restaurant and bar services, non-established businesses that have an annual turnover of less than SSP12,000 or those that do not have a sitting area for customers are exempted from ST. Other non-established domestic producers making taxable supplies with a turnover of less than SSP100,000 are also exempted.
Tax representatives. The ST law in South Sudan allows a taxable person to appoint a tax advisor to represent it on tax matters. A tax representative, a position that carries more responsibility compared to a tax advisor, is not provided in the ST law. However, in South Sudan, these two can be used interchangeably. There is no distinction between the two. A tax advisor is the same as a tax representative, as long as they are an outside agent to the taxable person they are appointed to represent.
Reverse charge. The reverse charge does not apply in South Sudan. ST is not applicable on services purchased abroad, meaning no ST is accounted for imported services. For goods purchased abroad, taxable persons must account for ST at the point of clearing the goods through customs. Subsequently, they are not required to file any return if their ST is through importation only.
Domestic reverse charge. South Sudan does not implement domestic reverse charges.
Digital economy. In South Sudan, there are no specific regulations for the digital economy. Nonresidents providing electronically supplied services for both business-to-business (B2B) and business-to-consumer (B2C) are not required to register and account for ST in South Sudan. The reverse-charge mechanism does not apply in South Sudan, and as such no ST is accounted for on imported services. See the subsection Reverse charge above.
There are no other specific e-commerce rules for imported goods in South Sudan.
Online marketplaces and platforms. No special rules exist for online marketplaces and platforms in South Sudan.
Registration procedures. Tax registration is performed by making a written application to the South Sudan Revenue Authority (SSRA). The application includes a cover letter, a completed prescribed form, certificate of registration, Chamber of Commerce certificate, operating license and lease agreement. The SSRA may request for a site visit before registering a person for tax.
Deregistration. Tax deregistration can occur under any of the following circumstances:
• An incorporated entity closes down, ceases to exist, sells or transfers a business
• In the case of a sole proprietorship, if the individual dies
• In the case of a partnership, if it is dissolved or there is a change of a partner
• The legal status of the registered person changes
• If a person is registered in error
• In any other case as may be provided by law or regulations
Changes to ST registration details. Every registered taxable person must provide the Director General of Taxation with notice in a prescribed form of any changes in the information pertaining to registration details within 15 days of such change.
Until the date that the Director General of Taxation receives notice of such change, all information in the application for registration shall be deemed to be correct for the purposes of the Taxation Act, including any liability for tax, penalty, additional charge or interest due under the Act. As such, no penalties apply.
D. Rates
The term “taxable supplies” refers to supplies of goods and services that are liable to a rate of ST.
The ST rates are:
• Standard rate: 18%
• Special rate: 20% (with effect from 14 August 2023)
The standard rate of ST applies to all supplies of goods or services, unless a specific measure provided for a special rate or an exemption.
Note that the standard rate of ST is only applicable for the manufacture of goods (i.e., produced goods) or the supply prescribed services (i.e., telecommunication services and financial services).
• Imported goods
Examples of goods and services taxable at 20%
• Hotel, restaurant and bar services
The term “exempt supplies” refers to supplies of goods and services that are not liable to ST.
At the time of preparing this chapter, the SSRA is considering mandating e-invoicing in the future. No further information has been released on this.
Simplified ST invoices. Simplified ST invoicing is not allowed in South Sudan. As such, full ST invoices are required.
Self-billing. Self-billing is not allowed in South Sudan.
Proof of exports. On exportation, at the point of exit, the South Sudan customs office will sign off and stamp export declaration forms, which serve as evidence of goods having left South Sudan.
Foreign currency invoices. ST invoices can be issued in another currency, as well as the domestic currency, which is the South Sudanese pound (SSP). However, for reporting purposes, any transaction that is recorded in or effected in a foreign currency must be converted into SSP at the prevailing market rate.
Supplies to nontaxable persons. There are no special invoicing rules for supplies to nontaxable persons in South Sudan. As such, full ST invoices are required.
Records. In South Sudan, examples of what records must be held for ST purposes include all records of daily sales of goods or provision of services subject to tax, including the amount of each transaction. Other records to be kept are transactions completed but not yet invoiced, any nontaxable transaction, and payments of goods and services, including amount paid and the name and address of the supplier.
In South Sudan, ST books and records can be held outside of the country. However, while there are no specific provisions on where the records must be stored, in the event of an audit, physical documents are required to be provided to the tax authorities.
Record retention period. Records must be kept for at least six years. Each taxable person must keep accounts of all transactions, and these accounts must be made available in South Sudan for inspection by a revenue officer.
Electronic archiving. Electronic archiving is allowed in South Sudan.
I. Returns and payment
Periodic returns. The tax period in South Sudan is a calendar month. Returns must be filed on a monthly basis along with the payment of the tax due. Upon payment of the tax, a tax receipt is issued by the receiving bank. This tax receipt, together with the completed tax return and any other supporting documents, should then be submitted to the nearest SSRA office. ST returns must be submitted by the 15th of the following month from the end of the tax period.
Periodic payments. ST due must be paid by the same date as the ST return submission deadline of the 15th of every month. Monthly payments are made directly through a designated commercial bank using a prescribed form.
Electronic filing. Electronic filing is mandatory in South Sudan for all taxable persons. All taxable persons are required to register, file returns and pay taxes through the online platform (eTAX).
Payments on account. Payments on account are not required in South Sudan.
Special schemes. No special schemes are available in South Sudan.
Annual returns. Annual returns are not required in South Sudan.
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Supplementary filings. No supplementary filings are required in South Sudan.
Correcting errors in previous returns. Filing in South Sudan is done electronically via eTAX. To correct an error previously done, the taxable person can prepare the amended return and submit online or physically to the SSRA together with payment receipts if required.
Digital tax administration. There are no transactional reporting requirements in South Sudan.
J. Penalties
Penalties for late registration. A penalty of SSP500 is imposed for each month or part of a month that a business fails to register for ST on time.Additionally, criminal charges may be brought against person(s) who fail to register for ST.
Penalties for late payment and filings. Late filing of ST returns attracts a penalty of 5% per month for each month the ST return remains unfiled, up to a maximum of 25%. Additionally, late payment of ST attracts a penalty of 5% per month for every month the ST remains unpaid. This penalty is not capped.
A monthly interest rate of unpaid tax is at the rate of 120% of the prime commercial rate for such a period. The prime commercial rate is the average rate commercial banks in South Sudan charge other banks and financial institutions.
Penalties for errors. Where there is an understatement of ST, the following penalties may apply:
• Less than 25% of the tax due, the taxable person shall be liable to a 10% penalty of the understatement.
• Exceeds 25% of the tax due, the taxable person shall be liable to a 50% penalty of the understatement.
• Exceeds twice the times of the tax due, the taxable person shall be liable to a penalty of between 100% to 200% of the understatement.
• If the error is voluntarily disclosed by the taxable person, the taxable person shall be liable to a penalty of 5% of the understatement.
There are no specific penalties associated with the late notification or failure to notify the tax authorities of changes to a taxable person’s ST registration details. For further details, see the subsection Changes to VAT registration details above.
Penalties for fraud. Penalty for fraud is not specifically provided in the ST law in South Sudan. However, any offense specifically not provided in law when adjudicated for can attract a maximum penalty of one year in prison.
Personal liability for company officers. In South Sudan, company officers are not personally liable for errors and omissions in ST declarations and reporting.
Statute of limitations. The statute of limitations in South Sudan is three or six years. The statute of limitations for assessment of tax is three years. This is from the date the tax return was filed or the date the tax return was due. The above notwithstanding, an assessment may be made at any time where a taxable person with the intent of evading the payment of tax fails to file a return, files a return that is determined to be incorrect or commits fraud by or on behalf of a person in relation to tax liability.
The statute of limitation for collection of the assessed tax is six years. This is after the date of the notice of assessment and demand of the tax or before the expiration of any period for collection agreed upon in writing by the designated officer and the taxpayer, and in lieu of that, the claim to any tax or other charges shall be forfeited by the Government of the Republic of South Sudan (GRSS).