What is Special Excise Duty?

It is a tax charged on sale, transfer or disposal of second hand motor vehicles on change of ownership.

 

What is a second hand motor vehicle?

A second-hand motor vehicle is a registered motor vehicle and includes vehicles required to be registered according to the Vehicle Registration and Licensing Act, which is sold or disposed of to another person.

 

Applicable rates of Special Excise Duty.

The rate of special excise duty applicable depends on the engine capacity and year of manufacture of a vehicle.

The following schedule illustrates the amount to be paid to ZIMRA for Special Excise Duty on the change of ownership of second-hand motor vehicles.

 

Number of Years

Engine Capacity

Special Excise Duty Rate ($)

 

 

 

0-4

1000cc

2,400.00

1001-1500cc

3,200.00

1501-2000cc

4,000.00

2001-2500cc

4,800.00

2501-3000cc

4,800.00

3001-3500cc

4,800.00

Above 3501cc

4,800.00

 

 

 

5-10

1000cc

1,200.00

1001-1500cc

1,600.00

1501-2000cc

2,000.00

2001-2500cc

2,400.00

2501-3000cc

3,200.00

3001-3500cc

3,200.00

Above 3501cc

3,200.00

 

 

 

11-15

1000cc

600.00

1001-1500cc

800.00

1501-2000cc

1,200.00

2001-2500cc

1,600.00

2501-3000cc

1,600.00

3001-3500cc

1,600.00

Above 3501cc

1,600.00

 

 

 

16-20

1000cc

  400.00

1001-1500cc

  600.00

1501-2000cc

800.00

2001-2500cc

1,200.00

2501-3000cc

1,200.00

3001-3500cc

1,200.00

Above 3501cc

1,200.00

Above 20

All Engine Capacity

  400.00

 

Documents required for the change of ownership of second hand motor vehicles

  • Original motor vehicle registration book
  • Central Vehicle Registry Form Number 4 which has to be signed and stamped by the Zimbabwe Republic Police’s Vehicle Theft Squad. The signed Police clearance is valid for a period of 14 days from date of stamping
  • Certified copies of national registration certificates for both buyer and seller
  • Proof of residence for buyer and seller in the form of utility bill for water, electricity or any other such document
  • Agreement of sale signed by both buyer and seller with the following details;

ü  Details of both buyer and seller, that is full names, addresses and national identity numbers

ü  Details of the vehicle sold, that is make, model, year of manufacture, engine and chassis numbers

ü  Vehicle sale price

 

Circumstances in which Special Excise Duty is not payable

The following transfers of ownership of second hand motor vehicles are exempt from paying Special Excise Duty.

  • Between spouses married under the customary law or Marriage Act and between parents and children of such a marriage
  • Companies under the same control
  • By way of inheritance
  • Sales between or transfer to Private Voluntary Organizations
  • Transfer of trailers.

 

My Taxes, My Duties: Building my Zimbabwe!!

Disclaimer

This article was compiled by the Zimbabwe Revenue Authority for information purposes only. ZIMRA shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority. 

 

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