Calculation of duty on imported private motor vehicles

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, inter alia, and where applicable:

Port handling charges, e.g. at Durban Port, Walvis Bay, Beira, Dar es Salaam;

Storage charges; and
Any other special handling fees, if not already included in the CIF Value.

The charges that are levied include 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 calculated Customs duty payable. This value is known as the Value for Tax Purposes (VTP).
Below is a table showing examples of how to calculate duty payable on the most commonly imported motor vehicle types using arbitrary CIF values:

**NB: The rate of Customs duty on double cabs is 40% despite the payload. The rate of Customs duty for a Sedan/Station wagon is 25% if the cylinder capacity does not exceed 1500cc. If the cylinder capacity is above 1500cc the rate of Customs duty is 40%.

Please note that ZIMRA at entry points 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.

Contact ZIMRA on www. zimra.co.zw, follow us on Twitter: @Zimra_11, like us on Facebook: www.facebook.com/ZIMRA.11, e-mail:[email protected], call us (Head Office) on: 04 –758891-5; 790813; 790814; 781345; 751624; 752731.