1. What is URA Motor Vehicle Import Tax?

The Uganda Revenue Authority (URA) motor vehicle import tax consists of duty, VAT, and environmental levy calculated based on the vehicle's CIF value, customs value, age, and type. These taxes apply to all imported vehicles entering Uganda.

2. How Does the Calculator Work?

The calculator uses the URA tax formula:

Where:

• \( CIF \) — Cost, insurance, and freight value in UGX
• \( Customs Value \) — Assessed customs value in UGX
• \( Duty Rate \) — Typically 25% for passenger cars
• \( VAT \) — 18% of (CIF + Customs Value + Duty)
• \( Environmental Levy \) — 10% (under 8 years) or 20% (8+ years) of (CIF + Customs Value)

3. Importance of Accurate Calculation

Details: Proper tax calculation ensures compliance with URA regulations, prevents underpayment penalties, and helps with financial planning for vehicle imports.

4. Using the Calculator

Tips: Enter all values in UGX. For accurate results, obtain official CIF and customs values from shipping documents or URA valuation.

5. Frequently Asked Questions (FAQ)

Q1: What documents are needed for vehicle import?
A: Bill of lading, commercial invoice, packing list, import declaration form, and certificate of title/registration from country of origin.

Q2: Are there exemptions or reductions?
A: Some vehicles (e.g., ambulances, government imports) may qualify for exemptions. East African Community goods may have reduced rates.

Q3: How is customs value determined?
A: URA uses transaction value method (invoice price) or fallback methods if invoice is unavailable or questionable.

Q4: What about electric/hybrid vehicles?
A: These may qualify for reduced duty rates or exemptions under Uganda's green energy policies.

Q5: How often do rates change?
A: Tax rates typically change with annual budget announcements. Verify current rates before importing.