1. What is KRA Motor Vehicle Duty?

The Kenya Revenue Authority (KRA) motor vehicle duty is a tax imposed on imported vehicles. It consists of customs duty and VAT, calculated based on the vehicle's CIF (Cost, Insurance, and Freight) value and customs value.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( CIF \) — Cost, Insurance, and Freight value in KES
• \( Customs\ Value \) — Assessed customs value of the vehicle
• \( Duty\ Rate \) — Percentage duty rate (typically 25% for Ghana)
• \( VAT \) — Value Added Tax calculated on (CIF + Customs Value + Duty)

Explanation: The duty is calculated first, then VAT is calculated on the total of CIF, Customs Value, and Duty.

3. Importance of Duty Calculation

Details: Accurate duty calculation helps importers budget for vehicle imports, comply with tax regulations, and avoid unexpected costs during customs clearance.

4. Using the Calculator

Tips: Enter CIF value and customs value in KES. Default duty rate is 25% and VAT rate is 16%, but these can be adjusted if needed. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is CIF value?
A: CIF stands for Cost, Insurance, and Freight - the total value of the vehicle including purchase price, insurance, and shipping costs to the port of entry.

Q2: How is customs value determined?
A: Customs value is typically based on the vehicle's age, make, model, and condition, as assessed by customs officials.

Q3: Are there exemptions or reduced rates?
A: Some vehicles may qualify for reduced rates or exemptions based on special circumstances (e.g., diplomatic use, returning residents).

Q4: What other charges might apply?
A: Additional charges may include port handling fees, inspection fees, and excise duty for certain vehicle types.

Q5: How accurate is this calculator?
A: This provides an estimate. Actual duty may vary based on customs assessment and any applicable exemptions or additional charges.