ZIMRA Special Excise Duty rates for change of ownership of second-hand cars

In something that is sorely belated, the Zimbabwe Revenue Authority (ZIMRA) earlier this year announced the new rates and requirements for change of ownership of second-hand cars. These fees or rates fall under the Special Excise Duty which is charged in terms of Section 172B of the Customs and Excise Act.

With effect from the 1^st of January, 2021, the amounts of excise duty payable on change of ownership of second-hand motor vehicles are as per the tables below.

Special Excise Duty rates/fees for second-hand cars

0 to 4 year old cars

5 to 10 year old cars

11 – 15 year old cars

16 to 20 year old cars

Aditional requirements

1. Motor vehicle registration book (original not copy)

2. Central Vehicle Registry Form Number 4 signed and stamped by the Zimbabwe Republic Police’s Vehicle Theft Squad (ZRPVTS). This signed Police clearance is valid for 14 days from the date of issue.

3. Certified copies of National Identity Certificates for both buyer and seller.

4. Proof of residence for buyer and seller in the form of utility bill for water, electricity or any other such document

5. Agreement of sale signed by buyer and seller with the following details:
a. Full names, addresses and national identity numbers for buyer and seller.

b. Details of the vehicle, i.e. make, model, year of manufacture, engine and chassis numbers

c. Full sale price – proof of payment should be in the form of invoices, receipts and telegraphic transfers.

Exemption from Special Excise Duty

The following transfers of ownership of second-hand motor cars are exempt from paying Special Excise Duty:

1. Transfers between spouses married under the customary law or Marriage Act.

2. Between parents and children of such a marriage

3. Companies under the same control

4. Vehicle acquired by way of inheritance

5. Sales between or transfer to Private Voluntary Organisations.

You should also read

• Why the reasons for banning second-hand cars make no sense
• Four ZIMRA workers siphoned $50 million ZWL in a VAT scam
• The second-hand car ban is decimating ZIMRA’s revenue
• ZIMRA has started enforcing the second-hand car ban