Legislation in support of change of ownership

Section 13(1) of the Vehicle and Licensing Act states that when a registered vehicle is sold or undergoes a change of ownership, the seller or disposer must complete the ownership transfer within fourteen days from the date of sale. Subsection (2) stipulates that failure to comply with this requirement constitutes an offence, punishable by a fine not exceeding level four, imprisonment for up to three months, or both such fine and imprisonment.

Charges or fees payable on transfer of ownership

Subject to section 172BB of the Customs and Excise Act Chapter 23:02, Special Excise Duty shall be charged, levied and collected, for the benefit of the Consolidated Revenue Fund on second hand vehicles sold, transferred or otherwise disposed of to any person at such rate as may be fixed by the Charging Act i.e. Finance Act Number 13 of 2024 depending on the year of manufacture and engine size of the vehicle

Exemptions from paying Special Excise Duty

In terms of Section 172(B) of the Customs and Excise Act Chapter 23:02, no special excise duty shall be charged, levied or collected on the sale, transfer or disposal of any second-hand motor vehicle: -

 (a) between companies under the same control

(b) between spouses married under the Customary Marriages Act Chapter 5:05 or the Marriage Act Chapter 5:11 or between a parent and his or her child of such a marriage

(c) by way of inheritance; or

(d) to a private voluntary organization.

Currency used to pay for vehicle change of ownership

Special Excise duty is payable in currency in which the transaction was done in terms of Section 172(B) (2) of the Customs and Excise Act Chapter 23:02

Documentation required on change of ownership

  • Original registration book
  • Proof of identification for both seller and buyer
  • Original Proof of purchase or disposal
  • Proof of residence for both buyer and seller
  • Stamped and signed Central Vehicle Registry 4 Form (CVR)4 form which is within 14 days from date of issue
  • Final distribution and letter from the Master of High Court for transfer by way of inheritance
  • Marriage certificate for transfer between spouses
  • Birth certificate for transfer between child and parent of a recognized marriage union
  • CR14, Memorandum and Articles for transfer between companies under the same control
  • Letter of Authority (on letterhead) giving the company representative the mandate to sell
  • CMED Form AC54 for vehicles sold by the same
  • Mandate from owner to sell on his behalf vehicles sold by Auctioneers or Car Dealers
  • Certificate of Donation from the Private Voluntary Organisation.

*NB where one buys a vehicle that had not complied with requirements of Section 13(1) of the Vehicle and Licensing Act, outstanding Special Excise duty due remains due and payable before change of ownership is effected. Verifications on whether special excise duty was paid can be done at any Customs Office prior to the purchase thereof.

 

My Taxes, My Duties: Building my Zimbabwe.

Taxman Special Excise Duty Levied on Sale of Second-Hand Vehicles: Change of Ownership

28 August 2025.

 

Disclaimer

This article was compiled by the Zimbabwe Revenue Authority (ZIMRA) 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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