SUPPLY YOU SINCE 2008
APPROVED IMPORT AND EXPORT EXPERTS
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Passenger Motor
Vehicles
Frequently Asked Questions on Importing Motor Vehicles into Zimbabwe
1. What is Surtax?
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Surtax is levied at 35% of Value for Duty Purposes (VDP) on motor vehicles over 5 years old.
2. How is Value Added Tax (VAT) calculated?
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VAT is charged at 15% of Value for Tax Purposes (VTP), which is VDP + customs duty payable.
3. How is the valuation of a motor vehicle done?
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Physical examination of the vehicle is conducted.
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ZIMRA reserves the right to accept or decline the declared value.
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Reassessment of value may be done if necessary.
4. What factors are considered in the valuation of a motor vehicle?
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Condition of the vehicle.
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Mileage.
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Year of manufacture
5. Can an individual engage a clearing agent to clear their motor vehicle?
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Yes, individuals can engage registered clearing agents.
Example Calculation:
Vehicle: Nissan Terrano, 1998, 3270cc engine, CIF value $2,720 from Japan.
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VDP = $2,720
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Duty = 40% of VDP = $1,088
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Surtax = 35% of VDP = $952
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VAT = 15% of (VDP + Duty) = $571.20
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Total Payable = $2,611.20
Duty Calculations.
Duty to be paid on importation of motor vehicles into Zimbabwe is based on CIF value ( Cost, Insurance, Freight ) and other incanidental charges and expenses incurred in the process of purchasing 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:
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Port handling charges, e.g. at Durban Port, Walvis Bay, Beira, Dar es Salaam;
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Storage charges; and
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Any other special handling fees, if not already included in the CIF Value.
The charges that are levied are 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).
Value Added Tax 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:
VALUES ARE CALCULATED IN BOTH USD AND ZiG (on special and specified vehicles).
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Duty is calculated on the Value for Duty Purposes.
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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:
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Selling Commission,
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Brokerage,
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Storage,
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Handling,
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Documentation,
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Port Charges,
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Freight And Insurance.
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What Is Surtax?
Importation of Used Vehicles into Zimbabwe.
Important Notice
As of 2016, the Government of Zimbabwe introduced a ban on the importation of used vehicles that are more than 10 years old. This measure aims to promote the use of newer, safer, and more environmentally friendly vehicles.
Key Points:
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Age Restriction: Used vehicles more than 10 years old are no longer allowed to be imported into Zimbabwe.
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Exceptions: Certain vehicles, such as those used for agricultural, mining, or construction purposes, may be exempt from this restriction.
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Compliance: Importers must ensure that all imported vehicles comply with the age restriction and other relevant regulations.
Consequences of Non-Compliance:
Failure to comply with the age restriction may result in:
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Rejection of Vehicle: The vehicle may be rejected at the port of entry.
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Penalties and Fines: Importers may face penalties and fines for non-compliance.
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Seizure of Vehicle: In severe cases, the vehicle may be seized by authorities.
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