Duty cal­cu­la­tion on im­por­ta­tion of pri­vate mo­tor ve­hi­cles

Chronicle (Zimbabwe) - - Business -

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.

Please tune in to Zi-FM Stereo ev­ery Wed­nes­day from 1930-2030 hours for dis­cus­sions on Cus­toms and Tax mat­ters.

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:

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