Duty calculations for Passenger Motor Vehicles

The duty to be paid on importation of motor vehicles into Zimbabwe is based on the Cost, Insurance and Freight (CIF) value plus other incidental charges and expenses incurred in the purchase of the vehicle and its subsequent transportation up to the first point of entry into Zimbabwe. This CIF value and the other charges constitute what is known as the Value for Duty Purposes (VDP). Such other charges include, inter alia, and where applicable:

· Port handling charges, e.g. at Durban Port, Walvis Bay, Beira, Dar es Salaam;

· Storage charges; and

· Any other special handling fees, if not already included in the CIF Value.

The charges that are levied are Customs duty, Surtax and Value Added Tax (VAT). 25% Surtax is only charged on passenger type motor vehicles that are more than five (5) years old at the time of importation. Please note that both Customs duty and Surtax (where applicable) are calculated on the Value for Duty Purposes (VDP). VAT of 15 % is calculated on the total of VDP plus the calculated Customs duty payable. This value is known as the Value for Tax Purposes (VTP).

The table below shows the rates of customs duty for the different classes of private motor vehicles.

 

Type of Private Motor Vehicle

Customs duty Rate

Passenger motor vehicles

40%

Double Cabs

60%

Single Cabs & Panel vans of a Payload exceeding 800kg but not exceeding 1400kg

40%

 

Below is a table showing examples of how to calculate duty payable on the most commonly imported private motor vehicle types using arbitrary CIF values.

**NB: All values are in USD

 

Year of Manufacture/Type of vehicle

Engine Capacity/Payload

CIF Value

$

Other Charges

$

VDP

$

Duty

$

Surtax

$

VTP

$

VAT

$

Total amount payable

$

2012

Sedan/ Station Wagon

1495cc

6 000

_

6 000

@40% = 2 400

_

8 400

@ 15%

=1 260

3 660

2005

Sedan/Station Wagon

1495cc

4 000

1 200

5 200

@ 40% = 2 080

@ 25% = 1 300

7 280

@ 15%

= 1 092

4 472

2001

Sedan/Station Wagon

1800cc

5 000

900

5 900

@ 40% = 2 360

@ 25% = 1 475

8 260

@ 15%

= 1 239

5 074

2011

Sedan/ Station Wagon

3000cc

10 000

600

10 600

@ 40%

= 4 240

_

14 840

@ 15%

= 2 226

6 466

2004

Pick -up truck

Payload of up to 900kg

3 000

1 000

4 000

@40%

=1 600

-

5 600

@ 15%

= 840

2440

2005

Pick -up truck

Payload of more than 1300kg

4 000

1 200

5 200

@40%

= 2 080

-

7 280

@ 15%

= 1 092

3 172

2007

Double Cab

2500cc

7 000

1 500

8 500

@60%

= 5 100

-

13 600

@15%

= 2 040

7 140

 

**NB: Please note that ZIMRA at entry points may re-assess values of the motor vehicles if the declared values do not reflect a true market price in the country from where they were bought.

What is the Value for Duty Purposes (VDP)?

This is the value which forms the basis for the calculation of duty and includes the cost of the vehicle and any other charges or expenses incidental to the purchase of the vehicle and its transportation up to the place of importation. The following is a list of charges that are included in the calculation for duty purposes:

  • selling commission,
  • brokerage,
  • storage,
  • handling,
  • documentation,
  • port charges,
  • freight and insurance.

2.  What is surtax?

Surtax is levied at the rate of 25% of Value for Duty Purposes on motor vehicles which are more than five years old.

3.   How is Value Added Tax (VAT) calculated?

Value Added Tax is charged at a rate of 15% on the Value for Tax Purposes (VTP) which is Value for Duty Purposes (VDP) plus customs duty payable.

4.   How is valuation of the motor vehicle done?

Physical Examination of the vehicle is carried out. ZIMRA reserves the right to accept or decline the declared value. Reassessment of the value may be done where necessary.

7. What factors are considered in the valuation of a motor vehicle?

The condition of the vehicle, mileage, year of manufacture are some of the factors used in the valuation of a motor vehicle.

8. Can an individual engage a clearing agent to clear their motor vehicle?

Yes. Clients may only engage registered clearing agents as ZIMRA only deals with bona fide clients and registered clearing agents. A list of registered clearing agents is available here

 

 

duty to be paid on importation of motor vehicles into Zimbabwe is based on the Cost, Insurance and Freight (CIF) value plus other incidental charges and expenses incurred in the purchase of the vehicle and its subsequent transportation up to the first point of entry into Zimbabwe? This CIF value and the other charges constitute what is known as the Value for Duty Purposes (VDP). Such other charges include, inter alia, and where applicable:

· Port handling charges, e.g. at Durban Port, Walvis Bay, Beira, Dar es Salaam;

· Storage charges; and

· Any other special handling fees, if not already included in the CIF Value.

The charges that are levied are Customs Duty, Surtax and Value Added Tax (VAT). Surtax is only charged on passenger type motor vehicles that are more than five (5) years old at the time of importation. Please note that both Customs Duty and Surtax (where applicable) are calculated on the Value for Duty Purposes (VDP). Value Added Tax is calculated on the total of VDP plus the calculated Customs Duty payable. This value is known as the Value for Tax Purposes (VTP).

Below is a table showing examples of how to calculate duty payable on the most commonly imported motor vehicle types using arbitrary CIF values:

**NB: All values are in USD

Year of Manufacture/Type of vehicle

Engine Capacity/Payload

CIF Value

$

Other Charges

$

VDP

$

Duty

$

Surtax

$

VTP

$

VAT

$

Total amount payable

$

2009

Sedan/ Station Wagon

1495cc

6 000

_

6 000

@25% = 1 500

_

7 500

@ 15%

=1 125

2 625

2005

Sedan/Station Wagon

1495cc

4 000

1 200

5 200

@ 25% = 1 300

@ 25% = 1 300

6 500

@ 15%

= 975

3 575

2001

Sedan/Station Wagon

1800cc

5 000

900

5 900

@ 40% = 2 360

@ 25% = 1 475

8 260

@ 15%

= 1 239

5 074

2008

Sedan/ Station Wagon

3000cc

10 000

600

10 600

@ 40%

= 4 240

_

14 840

@ 15%

= 2 226

6 466

2004

Pick -up truck

Payload of up to 800kg

3 000

1 000

4 000

@25%

=1 000

-

5 000

@ 15%

= 750

1 750

2005

Pick -up truck

Payload more than 800kg but not exceeding 1400kg

4 000

1 200

5 200

@20%

= 1 040

-

5 340

@ 15%

= 936

1 976

2002

Pick- up truck

Payload more than 1400 kg but with a gross vehicle mass of less than 5 tonnes

7 000

1 500

8 500

@40%

= 3 400

-

11 900

@15%

= 1 785

5 185

 
busyPOLLXT_LOADING

ZIMRA Search

ZIMRA Exchange Rates

Calendar

December 2014
S M T W T F S
30 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31 1 2 3

ZIMRA Newsletter

Tariff Handbook

Tariff HandBook