SED: Change of own­er­ship of sec­ond-hand cars

Chronicle (Zimbabwe) - - Business -

SPE­CIAL Ex­cise Duty is charged in terms of Sec­tion 172 of the Cus­toms and Ex­cise Act [Chap­ter 23:02]). It is a tax levied on sale, trans­fer or dis­posal of sec­ond-hand mo­tor ve­hi­cles on change of own­er­ship. A sec­ond hand mo­tor ve­hi­cle is a reg­is­tered mo­tor ve­hi­cle, and in­cludes ve­hi­cles re­quired to be reg­is­tered ac­cord­ing to the Ve­hi­cle Reg­is­tra­tion and Li­cens­ing Act, which is sold or dis­posed of to an­other per­son. Spe­cial Ex­cise Duty Rates The amount to be paid to ZIMRA for Spe­cial Ex­cise Duty on the change of own­er­ship of sec­ond hand mo­tor ve­hi­cles is as per the sched­ule shown on ta­ble 1. These new amounts ap­ply to change of own­er­ship with ef­fect from 1 Jan­uary 2016.

Doc­u­ments which are re­quired for the change of own­er­ship for sec­ond hand mo­tor ve­hi­cles are as fol­lows:

Orig­i­nal reg­is­tra­tion book

Cen­tral Ve­hi­cle mo­tor ve­hi­cle Reg­istry Form Num­ber 4 which has to be signed and stamped by the Zim­babwe Repub­lic Po­lice’s Ve­hi­cle Theft Squad. The signed Po­lice clear­ance is valid for a pe­riod of 14 days from date of stamp­ing

Cer­ti­fied copies of na­tional reg­is­tra­tion cer­tifi­cates for both buyer and seller

Proof of res­i­dence for buyer and seller in the form of util­ity bill for wa­ter, elec­tric­ity or any other such doc­u­ment

Agree­ment of sale signed by both buyer and seller with the fol­low­ing de­tails:

De­tails of both buyer and seller, that is full names, ad­dresses and na­tional iden­tity num­bers

De­tails of the ve­hi­cle sold, that is make, model, year of man­u­fac­ture, en­gine and chas­sis num­bers

Full sale price - the proof of pay­ment should be in the form of in­voices, re­ceipts and tele­graphic trans­fers. Cases in which Spe­cial Ex­cise Duty is not payable

The fol­low­ing trans­fers of own­er­ship of sec­ond­hand mo­tor ve­hi­cles are ex­empt from pay­ing Spe­cial Ex­cise Duty:

Trans­fers be­tween spouses mar­ried un­der the cus­tom­ary law or Mar­riage Act and be­tween par­ents and chil­dren of such a mar­riage

Com­pa­nies un­der the same con­trol

By way in­her­i­tance

Sales be­tween or trans­fer to Pri­vate Vol­un­tary Or­gan­i­sa­tions.

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.

Re­port cor­rupt ac­tiv­i­ties anony­mously by call­ing: Toll Free Econet Line: 0808 190, Tele­cel Line: 0732 880 880, What­sApp: 0772 135 690, E-Mail: zim­raan­ti­cor­rup­tion@, Fol­low us on twit­ter #re­port­taxand­du­ty­cor­rup­tion

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