Before getting into too much detail about the fees involved with importing a vehicle from Japan to Zimbabwe, it may be best to first understand the basic requirements for taxes and duties. Please note that this information is subject to change, so it is important to visit the Zimbabwe Revenue Authority’s official website for the most up-to-date information.
• The value added tax (VAT) for imported vehicles is 15 percent.
• For vehicles that have small-capacity engines, around 1500 cc or less, the import duty is 40 percent.
• Vehicles meant for carrying 10 or more people, such as buses and minivans, require an import duty of up to 60 percent.
• Vehicles meant for transporting goods have an import duty of 25–40 percent. This percentage depends on the gross weight of the vehicle.
• Station wagons, vans, and other light vehicles meant for transporting people also require an import duty of 25–40 percent.
Additional vehicle import taxes in Zimbabwe
Value for duty purposes (VDP) is the tax charged on the full value of the vehicle plus all the fees incurred, including brokerage commissions and transport fees from the country of origin. A surtax is levied on vehicle imports that are more than five years old; this fee is usually 25 percent of the VDP.
Luckily, in Zimbabwe, motor vehicles are categorized as luxury and thus there is no restriction on the year of manufacture. Importing a car from Japan to Zimbabwe is not a challenge in this regard.
What is the vehicle’s tax value in Zimbabwe?
The Zimbabwe Revenue Authority, or ZIMRA for short, carries out a physical examination of each vehicle in question to determine its value. They have the right to agree or reject the declared value provided by the clearing agent or importer if it does not reflect the vehicle’s true market value. During the valuation of the vehicle, the authority considers the open market value of identical cars. They may also consider the open market values that were previously accepted for similar car models, and the condition of the car at the time of importation.
It is important to note that even cars imported as gifts are subject to valuation by ZIMRA. The reasoning behind this process is to ensure that imported goods are neither undervalued nor overvalued. If after this valuation you are not satisfied, it is possible to seek an appeal or a ruling on the value with the station manager or regional manager.
What is the vehicle’s duty value in Zimbabwe
Imported Japanese cars are liable to incur a charge once they reach one of Zimbabwe’s main ports of entry. The used car custom and tax duty is calculated based on the total import cost. Usually, the figure includes all the costs and charges incurred during the course of purchase, importation, freight, and delivery among others. The levied amount is comprised of the VAT and the customs duty. The percentage varies depending on the type of car that you are importing and the fuel consumption (in cubic centimeters). Commercial vehicles are taxed less than personal cars in Zimbabwe.
There are two ports used for importing vehicles from Japan to Zimbabwe—Durban, South Africa, and Dar Es Salaam, Tanzania. The handling and freight rates for each port of entry vary.
Required Documentation for Importing
• Agreement of sale
• Export permit and any other relevant documents
• Registration documents
• Freight documents
• Vehicle insurance document