1. What is URA Motor Vehicle Import Tax?

The Uganda Revenue Authority (URA) imposes taxes on imported motor vehicles, consisting of import duty and value-added tax (VAT). The duty rate varies by vehicle type, with passenger cars typically attracting 25% duty, while VAT is standard at 18%.

2. How Does the Calculator Work?

The calculator uses the URA tax formula:

Where:

• Customs Value — Assessed value of the vehicle (UGX)
• CIF — Cost, Insurance, and Freight charges (UGX)
• Duty Rate — Percentage duty (typically 25% for passenger cars)
• VAT — 18% of (Customs Value + CIF + Duty)

Explanation: The duty is calculated on the sum of customs value and CIF, while VAT is calculated on the total of customs value, CIF, and duty.

3. Importance of Accurate Calculation

Details: Accurate tax calculation helps importers budget properly, avoid underpayment penalties, and prevent delays in vehicle clearance at Ugandan ports.

4. Using the Calculator

Tips: Enter all values in UGX. The default duty rate is set to 25% (typical for passenger cars) and VAT to 18%. Adjust these rates if your vehicle falls under different categories.

5. Frequently Asked Questions (FAQ)

Q1: How is customs value determined?
A: URA uses the transaction value method (invoice price) or valuation database for used vehicles if no invoice is available.

Q2: Are there exemptions or reduced rates?
A: Yes, for certain vehicles like ambulances, buses, and vehicles imported under special arrangements.

Q3: What other charges might apply?
A: Additional charges may include withholding tax, environmental levy, and administrative fees.

Q4: How often do rates change?
A: Tax rates are reviewed annually in the national budget, but changes are infrequent.

Q5: Where can I get official confirmation?
A: Always verify calculations with URA customs officials or the URA web portal for final amounts.