What is Special Excise Duty?
Special Excise Duty is charged in terms of Section 172 of the Customs and Excise Act (Chapter 23:02). It is a tax levied on sale, transfer or disposalof second hand vehicles on change of ownership.
Definition of 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 disposedof to another person.
At what rate is Special Excise Duty charged?
The amount to be paid to ZIMRA for Special Excise Duty on the change of ownership of second-hand motor vehicles is as per the schedule below.
Documents which are required for the change of ownership for second hand motor vehicles are as follows:
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;
Details of both buyer and seller, that is full names, addresses and national identity numbers
Details of the vehicle sold, that is make, model, year of manufacture, engine and chassis numbers
Full sale price – the proof of payment should be in the form of invoices, receipts and telegraphic transfers
Cases 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
Our clients are reminded to take advantage of the TAX AMNESTY that is closing on 30 June 2018.
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. To contact ZIMRA: WhatsApp line : +263 782 729 862 Visit our website : www. zimra.co.zw Follow us on Twitter : @Zimra_11 Like us on Facebook : www.facebook.com/ZIMRA.11 Send us an e-mail : firstname.lastname@example.orgemail@example.com Call us (Head Office) : 04 –758891/5; 790813; 790814; 781345; 751624; 752731 e-TIP : http://ecustoms.zimra.co.zw/etip/