What is the rate of duty charged on importation of passenger type motor vehicles?

Vehicle Description

Duty Rate

Surtax Rate

VAT Rate

Total

Passenger Motor vehicles sedans s/wagons

       

Not exceeding 1000cc

25%

25%

15%

68.75%

1001-1500cc

25%

25%

15%

68.75%

1501-3000cc

40%

25%

15%

86%

Exceeding 3000cc

40%

25%

15%

86%

Trucks

       

Of a pay load not exceeding 800kg

25%

Free

15%

40%

Of a pay load more than 800kg but less than 1400kg

20%

Free

15%

35%

Of a pay load exceeding 1400 but less than 5 tonnes

40%

Free

15%

55%

Of a pay load of>5 to 20 tonnes

10%

Free

15%

25%

Of a pay load exceeding 20 tonnes

10%

Free

15%

25%

Buses

       

For the transport of 15 but less than 20 persons

60%

Free

15

75%

For the transport of more than twenty people but less than 26 persons

25%

Free

15

40%

For the transport of more than 26 persons

Free

Free

15

15%

Duty is calculated on the Value for Duty Purposes.

  1. 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.

  2. What is surtax?
    Surtax is levied at the rate of 25% of Value for Duty Purposes on motor vehicles which are more than five years old.

  3. How is Value Added Tax (VAT) calculated?
    Value Added Tax is charged at a rate of 15% 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. ZIMRA reserves the right to accept or decline the declared value. 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, 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 here

Example

Vehicle: Nissan Terrano, year 1998, engine capacity 3270cc with a CIF value of USD2720 from Japan.

Answer

The mentioned vehicle attracts duty of 40% and surtax of 25% (since it is more than 5 years old). These 2 charges are levied on what is called the Value for Duty Purposes (VDP) which consists of the CIF Value plus any other costs incurred up to the point of importation into Zimbabwe. If the value of $2 720 is accepted, then it becomes the VDP. VAT is also payable at 15% and this is calculated on the Value for Tax Purposes (VTP) which is the VDP plus the duty payable. That is to say:

VDP = 2720.00

Duty = (40% of 2720) = 1088

Surtax = (25% of 2720) = 680.00

VAT = 15% X (2720 + 1088) = 571.20

Total Payable = 2339.20