The Zimbabwe Revenue Authority (ZIMRA) has reminded buyers of second-hand motor vehicles of their legal obligation to pay special excise duty on change of ownership, in line with section 172BB(1)(b) of the Customs and Excise Act [Chapter 23:02].
Under the law, a buyer must present the sale documentation to the Commissioner no later than fourteen working days from the date the police clearance certificate is issued. Once ZIMRA has assessed the amount, payment must be made within thirty days.
Failure to comply attracts a penalty of thirty percent on the unpaid duty, plus interest of twenty-five percent per annum on amounts paid in Zimbabwe dollars and ten percent on amounts paid in United States dollars.
However, not all transfers attract the duty. Exemptions apply to transfers between companies under the same control, between spouses, between a parent and child, by way of inheritance, to a Private Voluntary Organisation, and to the Government of Zimbabwe under certain conditions.
ZIMRA says it has noted with concern that some clients have ignored assessments already issued and failed to settle within the stipulated thirty days. All clients with outstanding payments are therefore urged to settle immediately, together with the applicable penalties and interest.
To give defaulters a final opportunity to comply, ZIMRA has granted a grace period up to 31 December 2026 to settle all outstanding amounts, including penalties and interest. Thereafter, the Authority says it will employ other recovery measures to recover the outstanding duty, penalties and interest.
Clients are advised to act now to avoid inconveniences and disruptions to their travelling plans or when renewing vehicle licences.
Compliance is important because it enables ZIMRA to collect the revenue Government needs to fund public services, infrastructure and national development, while also protecting vehicle owners from costly penalties, interest and enforcement action that can disrupt travel plans and the renewal of vehicle licences. By presenting documents on time and paying the assessed duty within the stipulated period, buyers regularise their ownership, avoid accumulating debt and demonstrate good citizenship in line with the principle of “My Taxes, My Duties: Building My Zimbabwe.”
