Special Excise Duty on change of ownership of second-hand motor vehicles

What is Special Excise Duty?

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 below. 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 motor vehicle registration book ◆ Central 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 second-hand 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 of 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.