1. What is ZRA Motor Vehicle Duty?

The Zambia Revenue Authority (ZRA) imposes duty on imported motor vehicles based on their CIF (Cost, Insurance, and Freight) value, customs value, and applicable duty rates. This calculator helps estimate the total payable duty including VAT.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

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

Explanation: The calculation first determines the base duty amount, then calculates VAT on the total value including duty.

3. Importance of Duty Calculation

Details: Accurate duty calculation is essential for importers to budget properly, comply with ZRA regulations, and avoid unexpected costs when importing vehicles.

4. Using the Calculator

Tips: Enter CIF value and customs value in ZMW, select appropriate duty rate (typically 25-30%), and VAT rate (currently 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 reference value for similar vehicles.

Q3: What duty rates apply to vehicles?
A: Standard duty rates range from 25% to 30% depending on vehicle type, age, and engine capacity. Electric vehicles may have lower rates.

Q4: Is VAT always 16%?
A: As of now, VAT is 16% but this rate may change. Always verify current rates with ZRA.

Q5: Are there other charges besides duty and VAT?
A: Yes, there may be additional fees like processing fees, carbon tax, or other levies depending on the vehicle type.