Is VAT claimable on motor vehicles?

VAT incurred on running expenses relating to the repair, maintenance and insurance of a motor car may be deducted as input tax provided the motor car is used, consumed or supplied in the course of making taxable supplies.

What is a passenger motor vehicle in tax?

Passenger Motor Vehicles (PMV) are defined IN THE 4TH SCHEDULE as any motor vehicle. propelled by mechanical or electrical power and intended or adapted for use or capable of. being used on roads mainly for the conveyance of passengers, including an estate car, station.

What are commercial vehicles in Zimbabwe?

Commercial Vehicle, means any vehicle used for trading or used commercial purposes, for example, taxis, commuter omnibuses, hired vehicles, towing vehicles equipped with lifting and towing equipment, buses, haulage trucks, funeral parlour vehicles among other vehicles.

Which cars are allowed in Zimbabwe?

Both Left-Hand and Right-Hand Drive vehicles are allowed into Zimbabwe. Zimbabwe has no age limits on imported vehicles. However, vehicles older than 5 years attract a surtax of 35% of the landed cost at the point of entry.

What is a motor car as defined?

A motor vehicle, also known as motorized vehicle or automotive vehicle, is a self-propelled land vehicle, commonly wheeled, that does not operate on rails (such as trains or trams) and is used for the transportation of people or cargo.

What vehicles are VAT exempt?

You can purchase, a motor vehicle VAT- free when all the following conditions are met:

  • the motor vehicle is supplied to a disabled person who normally uses a wheelchair to be mobile.
  • the vehicle is permanently and substantially adapted.

Is a single cab bakkie a motor car?

The definition of “motor vehicle” includes all vehicles designed primarily for the purposes of carrying passengers. This definition covers ordinary sedans, hatchbacks, multi-purpose vehicles and double cab bakkies. A single cab bakkie or a bus designed to carry more than 16 persons will qualify for input VAT purposes.

What is a heavy vehicle in Zimbabwe?

Class 2: Heavy Vehicle (Goods) This class focuses on heavy vehicles with a vehicle weight of more than 2300 Kg. To qualify for this class one must be at least 18 years of age and be either a holder of a Class 4 Driver\’s licence or attain at least 88% on the Provisional Test.

Which cars are not allowed in Zimbabwe?

Under Statutory Instrument 89 of 2021 which came into effect on Friday, second-hand vehicles manufactured 10 years ago, except commercial vehicles and those for agricultural purposes, will no longer be permitted into the country.

How is duty calculated on cars in Zimbabwe?

The duty to be paid on importation of motor vehicles into Zimbabwe is based on the Cost, Insurance and Freight (CIF) value plus other incidental charges and expenses incurred in the purchase of the vehicle and its subsequent transportation up to the first point of entry into Zimbabwe.