The Zimbabwe Revenue Authority (ZIMRA) has given buyers of second-hand vehicles with outstanding Special Excise Duty until 31 December 2026, to clear their obligations, warning that defaulters will face recovery action, including penalties and interest.
In a Public Notice 62 of 2026, issued this Tuesday, the tax authority said some vehicle buyers had failed to honour duty assessments despite being notified to make payments within the stipulated 30-day period.
ZIMRA has consequently extended the payment period to the end of December, allowing affected clients to clear outstanding duty, penalties and interest before enforcement measures are implemented.
“Thereafter, other recovery measures will be employed to recover the outstanding special excise duty, penalties and interest,” ZIMRA said.
Under Section 172BB(1)(b) of the Customs and Excise Act [Chapter 23:02], buyers of second-hand motor vehicles are required to pay Special Excise Duty at prescribed rates when ownership changes.
The law requires buyers to submit sale-related documentation to the Commissioner within 14 working days of the issuance of a police clearance certificate for the transaction.
Once the duty has been assessed, payment must be made within 30 days, failure of which attracts a 30 percent penalty.
ZIMRA said interest on outstanding duty is charged at an annual rate of 25% for payments denominated in Zimbabwe dollars and 10% for amounts payable in United States dollars.
The authority warned that failure to settle outstanding obligations could result in inconveniences and disruptions, particularly when motorists make travel arrangements or seek to renew their vehicle licences.
However, certain transactions are exempt from Special Excise Duty, including transfers between companies under the same control, between spouses, and between parents and children.
Other exemptions cover transfers arising from inheritance, transfers to Private Voluntary Organisations and qualifying transfers to the Government of Zimbabwe.
ZIMRA urged all affected clients to take advantage of the extended payment period and clear their outstanding obligations before the December 31 deadline to avoid further recovery action.
