adminWhat is Special Excise Duty?
It is a tax levied on change of ownership upon sale, transfer or disposal of second hand motor vehicle.
A second-hand motor vehicle is a motor vehicle registered and includes vehicles required to be registered according to the Vehicle Registration and Licensing Act that is sold or disposed of to any person.
Who pays Special Excise Duty?
The buyer of a second-hand motor vehicle
At what rate is Special Excise Duty charged?
Special Excise Duty is charged at a rate of 5 percent on the value of the vehicle
Cases in which Special Excise Duty is not payable
Sale, transfer or disposal;
- Between companies under the same control, in the course of or in furtherance of a scheme of reconstruction of a group of companies or a merger or other business operation which, in the opinion of the Commissioner-General of Zimra, is of a similar nature; or
- Between spouses married under the Customary Marriage Act or the Marriage Act, or between a parent and his or her child of such a marriage; or
- By way of inheritance; or
- To a private voluntary organisation.
Valuation of second-hand motor
vehicles where Special Excise Duty is payable
Where a declared value for the purposes of Special Excise of a second-hand motor vehicle is less than the fair value of the second-hand motor vehicle, Zimra may determine the fair value of that motor vehicle.
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.
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.
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