adminlist of charges that are included in the calculation for duty purposes:
l Selling commission;
l Brokerage;
l Storage;
l Handling;
l Documentation;
l Port charges;
l Freight;
l Insurance.
2. 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.
3. How is Value Added Tax (VAT)
calculated?
VAT 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.
4. How is valuation of the motor
vehicle done?
Physical examination of the vehicle is carried out. In terms of the Customs and Excise Act [Chapter 23:02], the declared value may either be accepted or declined by Zimra due to a number of reasons. Reassessment of the value may be done where necessary.
5. What factors are considered in the valuation of a motor vehicle?
The condition of the vehicle, mileage and year of manufacture are some of the factors used in the valuation of a motor vehicle.
6. 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 website www.zimra.co.zw.
Example: Calculation of Duty
Value of motor vehicle = US$6 000,00
Freight and insurance = US$1 400,00
Value for duty purposes
(US$6 000 + US$1 400) = US$7 400,00
Customs Duty* (say at 40%)
= US$2 960,00
Value for tax purposes
(US$7 400 + US$2 960) = US$10 360,00
Value Added Tax (VAT),
15% of US$10 360 = US$1 554,00
Surtax at 25% = US$1 850,00
Total duty payable = US$6 364,00
l Article submitted by the Zimbabwe Revenue Authority. To contact us:
Visit our website : www.zimra.co.zw
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Send us an e-mail : [email protected]
Call us (Head Office): 04-758891/5; 790813; 790814; 781345; 751624; 752731; 798879
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