Calculation of Duty on Importation of Private Motor Vehicles

Any person who imports a motor vehicle is required to make a declaration of the particulars relating to the vehicle. Of paramount importance is the declaration of value which should tally with the selling price on the invoice or agreement of sale in the case of purchased vehicles. It should be noted that it is an offence to make a false declaration.

ZIMRA reserves the right to accept declared values or in some cases, reject the declared values where such values do not reflect a bona-fide open market value and this is done in accordance with Section 112 of the Customs and Excise Act [Chapter 23:02].

The following documents are required to be produced on importation:-

  • Invoice/agreement of sale
  • Police clearance – SARPCO Certificate (when imported from a country in Southern Africa)
  • Export bill of entry and supporting documents
  • Registration book (in the case of used motor vehicles)
  • Selling commission
  • Brokerage
  • Storage
  • Handling
  • Documentation
  • Freight (up to the place of importation, only when the vehicle is not driven to such place)
  • Insurance (up to the place of importation)

The duty to be paid on the importation of any goods into Zimbabwe including motor vehicles is based on the Cost, Insurance and Freight (CIF) value from the country of exportation up to the first point of entry into Zimbabwe. This value, including all the other charges and expenses incurred and incidental to the purchase of the vehicle and its transportation to the place of importation 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;
  • 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). VAT is calculated on the total of VDP plus the duty amount- a value known as Value for Tax Purposes (VTP).

It should also be noted that individuals who travel to bring in their vehicles are entitled to the travellers’ rebate if they qualify for such.

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

**NB: All values are in USD

Type of vehicle

Engine Capacity

CIF Value

Other Charges

VDP

Duty

Surtax

VTP

VAT

Total amount payable

2009 Nissan March

1495cc

6 000

_

6 000

@25% = 1 500

_

7 500

@ 15%

=1 125

 

2 625

2005 Toyota Vitz

1495cc

4 000

1 200

5 200

@ 25% = 1 300

@ 25% = 1 300

6 500

@ 15%

= 975

 

3 575

2001 Nissan Sunny

1800cc

5 000

900

5 900

@ 40% = 2 360

@ 25% = 1 475

8 260

@ 15%

= 1 239

 

5 074

2008 Mercedes Benz

3000cc

10 000

600

10 600

@ 40%

= 4 240

_

14 840

@ 15%

= 2 226

6 466

Isuzu Pick Up Truck single cab with gross vehicle weight less than 5 tonnes and of a payload not exceeding 800kg

2400cc

8 000

-

8 000

@25%

= 2 000

-

10 000

@15%

= 1 500

3 500

Toyota Pick Up Truck Single Cab with gross vehicle weight not exceeding 5 tonnes and payload of between 800kg and 1400kg

3000cc

14 000

1 000

15 000

@20%

= 3 000

-

18 000

@15%

= 2 700

5 700

Nissan NP300 single cab  with gross vehicle weight not exceeding 5 tonnes and payload exceeding 1400kg

3000cc

9 200

1 100

10 300

@40%

=4 120

-

14 420

@15%

= 2 163

6 283

Nissan Navara Double Cab

2400cc

16 000

800

16 800

@40%

=6 720

-

23 520

@15%

=3 528

10 248

For any other type of vehicle which is not covered in the above table, please contact your nearest ZIMRA office.

Disclaimer: This article was compiled by the Zimbabwe Revenue Authority for information purposes only. ZIMRA shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority.

 

This article was submitted by the Zimbabwe Revenue Authority.

 
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