1. What is ZRA Motor Vehicle Duty?

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

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( CIF \) — Cost, Insurance, and Freight value (ZMW)
• \( Customs\ Value \) — Assessed customs value of the vehicle (ZMW)
• \( Duty\ Rate \) — Percentage duty rate (typically 25-30%)
• \( VAT \) — Value Added Tax (typically 16%)

Explanation: The duty is calculated as a percentage of the combined CIF and customs value, with VAT applied to the total value including duty.

3. Importance of Duty Calculation

Details: Accurate duty calculation is crucial for importers to budget correctly, comply with ZRA regulations, and avoid unexpected costs when importing vehicles into Zambia.

4. Using the Calculator

Tips: Enter CIF value and customs value in Zambian Kwacha (ZMW), select appropriate duty rate (25-30%) and VAT rate (16%). 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 Zambia.

Q2: How is customs value determined?
A: Customs value is assessed by ZRA and may be based on the transaction value or a standard valuation for similar vehicles.

Q3: Why are there different duty rates?
A: Duty rates vary based on vehicle type, age, and engine capacity. Standard rates are typically between 25-30%.

Q4: Are there additional charges?
A: Yes, there may be additional fees like excise duty, surtax, or other administrative charges not included in this calculator.

Q5: Is this calculator official?
A: This is an estimation tool. Final duty amounts are determined by ZRA during the import process.