14 October

Everything You Need to Know About the New Sales Tax Law in Syria

The new Sales Tax Law in Syria is an important step toward organizing the market and improving tax collection on both goods and services. In this article, we will explain the law's key features, who is obligated to comply, and how businesses can ensure they are in compliance.

What is the New Sales Tax Law?

This law defines the tax imposed on the sale of goods and services in Syria, and includes:

• General tax: Imposed on most goods and services.
• Special tax: Imposed on specific goods like tobacco, alcohol, and certain luxury products.

The law aims to promote tax fairness and ensure transparent tax collection, as well as providing clear mechanisms for compliance and tax auditing.

Who is Obligated to Pay Tax?

The law applies to all natural and legal persons who engage in:

• Selling taxable goods.
• Providing taxable services.
• Importing any taxable goods.

These individuals and businesses must register with the tax authority following the procedures outlined in the law, with the possibility of voluntary registration in certain cases.

Key Features of the New Law

1. Registration of Taxpayers and Tax Invoices

• Mandatory registration for anyone selling goods or offering services.
• Issuing tax invoices for all transactions.
• Keeping accounting records for 4 years to ensure transparency.

2. Tax Rates

• The general sales tax rate on most goods and services: 4%.
• The special sales tax rate on specific goods: 5%.

3. Tax Declarations and Cycles

• Taxpayers must submit tax declarations every 3 months.
• The declaration should specify the tax amount due for each cycle.

4. Auditing and Review

• The tax authority has the power to conduct tax audits to ensure the accuracy of the declarations.
• In case of violations, fines up to 15% of the owed tax may be imposed.
• Repeated violations may result in the closure of the violating business.

5. Combating Tax Evasion

• Strict penalties for individuals or businesses attempting to evade taxes.
• These penalties may include financial fines and business closure.

6. Objection and Appeal Mechanisms

• Taxpayers have the right to file objections or appeals against tax authority decisions with specialized committees.
• This process ensures a chance to correct any mistakes or violations.

How Does the Law Affect Businesses and Consumers?

For Businesses:

• Ensure registration and tax invoice issuance for compliance.
• Maintain accurate records to avoid fines and violations.

For Consumers:

• Guarantees that products are free from any tax evasion.
• Ensures transparency in pricing and tax components.

For Importers:

• Must comply with taxes on imported goods according to the specified categories.
• Ensure the submission of necessary documents and invoices to the tax authority.

Tips for Compliance with the New Sales Tax Law

1. Ensure business registration with the tax authority.
2. Issue invoices for all transactions and retain them in records.
3. Submit tax declarations on time every 3 months.
4. Stay updated on any new instructions or updates from the tax authority.
5. Seek assistance from a tax consultant if needed to avoid penalties.

Conclusion

The new Sales Tax Law in Syria is a crucial step toward market organization and enhancing tax fairness. Complying with this law ensures that businesses and individuals operate legally and safely, avoiding fines and legal penalties.

You can download the law draft from here

📌 For more information about business registration and tax compliance in Syria, contact ScopeOut Business Solutions.