Duty calculation 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. It should be noted that it is an offence to make a false declaration.
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:
Port handling charges, for example at Durban Port, Walvis Bay, Beira and 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 years old at the time of importation.
Please note that both Customs Duty and Surtax (where applicable) are calculated on VDP. VAT is calculated on the total of VDP plus the calculated Customs Duty payable. This value is known as the Value for Tax Purposes (VTP).
Zimra may, in some cases, reject the declared values where such values do not reflect a bona-fide open market value. This is done in accordance with Section 112 of the Customs and Excise Act [Chapter 23:02].
Please note that Zimra 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.
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.
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Below is a table showing examples of how to calculate duty payable on the most commonly imported private motor vehicle types using hypothetical CIF values with effect from 1 September 2015: