Easy method for calculating vehicle import duty in Zimbabwe
Want to import a vehicle outside Zimbabwe? Here is a straighforward method you can use to calculate a close range number of the duty charged by ZIMRA.
The full formula for calculating vehicle duty in Zimbabwe
Total Payable = (VDP x Customs Rate) + (VDP x Surtax Rate) + [(VDP + (VDP x Customs Rat)) x 15.5%]
Breakdown
1. Calculate Value for Duty Purposes (VDP)
The VDP serves as the baseline for most taxes. It aggregates all costs incurred to get the vehicle to the first point of entry into Zimbabwe.
VDP = CIF Value + Incidental Charges
- CIF Value: Cost of the vehicle (FOB) + Marine Insurance + Ocean/Road Freight.
- Incidental Charges: Port handling fees (e.g., at Durban or Walvis Bay), storage fees, and transit brokerage costs.
2. Calculate Customs Duty
Customs duty is calculated as a flat percentage of the VDP.
Customs Duty = VDP x Customs Duty Rate
Standard Rates: Typically 40% for standard passenger sedans, 40% for hybrids, and up to 60% for double-cab trucks or large SUVs.
3. Calculate Surtax (Age-Dependent)
Surtax is an additional tax levied on passenger vehicles depending on their age at the time of importation.
Surtax = VDP x Surtax Rate
- Vehicles under 5 years old: Exempt (0%).
- Vehicles 5 years and older: 35%.
4. Calculate Value for Tax Purposes (VTP)
The VTP is the baseline value used specifically to calculate the VAT.
VTP = VDP + Customs Duty
5. Calculate Value Added Tax (VAT)
VAT is calculated using the standard national rate applied directly to the VTP.
VAT = VTP x VAT Rate
- VAT Rate: 15.5%.
6. Calculate Total Payable Duty
The absolute total you must pay to ZIMRA at the border to clear the vehicle is calculated by combining the individual tax results:
Total Payable = Customs Duty + Surtax + VAT