adminMotor Vehicles Duty Structure
Engine Duty VAT Surtax
capacity
1-1500cc 25% 15% 25%
15001cc and 40% 15% 25%
above
Duty is calculated on the Value for Duty Purposes.
2. What is the Value for Duty Purposes (VDP)?
This is the value which forms the basis for the calculation of duty and includes the cost of the vehicle and any other charges or expenses incidental to the purchase of the vehicle and its transportation up to the place of importation.
The following is a list of charges that are included in the calculation for duty purposes: selling commission, brokerage, storage, handling, documentation, port charges, freight and insurance.
3. What is surtax?
Surtax is levied at the rate of 25 percent of Value for Duty Purposes on motor vehicles which are more than five years old.
4. How is Value Added Tax (VAT) calculated?
Value Added Tax is charged at a rate of 15 percent on the Value for Tax Purposes (VTP) which is Value for Duty Purposes (VDP) plus customs duty payable.
5. How is valuation of the motor vehicle done?
Physical examination of the vehicle is carried out. Zimra reserves the right to accept or decline the declared value. Reassessment of the value may be done where necessary.
7. What factors are considered in the valuation of a motor vehicle?
The condition of the vehicle, mileage, year of manufacture are some of the factors used in the valuation of a motor vehicle.
8. Can an individual engage a clearing agent to clear their motor vehicle?
Yes. Clients may only engage registered clearing agents as Zimra only deals with bona fide clients and registered clearing agents. A list of registered clearing agents is available on the Zimra websitewww.zimra.co.zw.
l Article submitted by the Zimbabwe Revenue Authority. To contact us:
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