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Zimra explains duty calculation on importation of private vehicles
17 Nov 2016 at 15:21hrs | Views
Zimbabwe Revenue Authority (ZIMRA) has taken to social media explaining how the duty calculation on Importation of Private Motor Vehicles is done.
In a statement Zimra said any person who imports a motor vehicle is required to make a declaration of the particulars relating to the vehicle.
"Of paramount importance is the declaration of value which should tally with the selling price on the invoice or agreement of sale. It should be noted that it is an offence to make a false declaration," said Zimra.
"The duty to be paid on importation of motor vehicles into Zimbabwe is based on the Cost, Insurance and Freight (CIF) value plus other incidental charges and expenses incurred in the purchase 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: Port handling charges, for example at Durban Port, Walvis Bay, Beira and Dar es Salaam; Storage charges; and any other special handling fees, if not already included in the CIF value."
Zimra said 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 years old at the time of importation. Please note that both Customs Duty and Surtax (where applicable) are calculated on VDP. VAT is calculated on the total of VDP plus the calculated Customs Duty payable. This value is known as the Value for Tax Purposes (VTP)," said Zimra.
"Zimra may, in some cases, reject the declared values where such values do not reflect a bona-fide open market value. This is done in accordance with Section 112 of the Customs and Excise Act [Chapter 23:02]."
In a statement Zimra said any person who imports a motor vehicle is required to make a declaration of the particulars relating to the vehicle.
"Of paramount importance is the declaration of value which should tally with the selling price on the invoice or agreement of sale. It should be noted that it is an offence to make a false declaration," said Zimra.
Zimra said 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 years old at the time of importation. Please note that both Customs Duty and Surtax (where applicable) are calculated on VDP. VAT is calculated on the total of VDP plus the calculated Customs Duty payable. This value is known as the Value for Tax Purposes (VTP)," said Zimra.
"Zimra may, in some cases, reject the declared values where such values do not reflect a bona-fide open market value. This is done in accordance with Section 112 of the Customs and Excise Act [Chapter 23:02]."
Source - Byo24News
