What is Special Excise Duty?
Special Excise Duty is charged in terms of Section 172B of the Customs and Excise Act [Chapter 23:02]). It is a tax levied on sale, transfer or disposal of second-hand motor vehicles on change of ownership. A second hand motor vehicle, is a Zimbabwe 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.

Special Excise Duty Rates
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. These new amounts apply to change of ownership with effect from 1 January 2021.
Documents required for change of ownership of Second hand motor vehicle.

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 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 vehicles 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.

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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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