A Complete Guide To Taxes And Customs Duty In Zambia

Date: 02nd July, 2026
Category: Uncategorized
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A Complete Guide To Taxes And Customs Duty In Zambia

Note: This article means only to serve as a guide and should be used as such. It is important that you verify the facts based on your vehicle and confirm with your clearing agent before shipping your vehicle.

Basic Terminologies

  1. FOB (Free On Board): This is the upfront cost of the imported car before transport, insurance, and inspection fees are added.
  2. CIF (Cost of Insurance and Freight): The CIF value of the imported vehicle is an aggregate of the FOB, insurance, freight and any other charges incurred outside Zambia.
  3. VDP (Value for Duty Purposes): This is the amount that totals after adding the CIF to the duty and is used to derive VAT
  4. VAT (Value Added Tax): a percentage of the sum of VDP, customs duty, and excise duty.
  5. Engine Capacity: This is the measurement of the total volume of the cylinders of the engine.
  6. Valuation: The value of your vehicle upon entry.
  7. Excise Duty: A percentage of the sum of VDP and the applicable Customs Duty.

Please note that the Zambian Revenue Authority reserves the right to re-valuate the value of a vehicle under the following circumstances:

  1. The importer or Customs Clearing Agent provides insufficient or unsatisfactory information;
  2. The vehicle is acquired in circumstances other than in the normal course of trade, e.g. gift or donation.

The revaluation process aims at arriving at values that form the VDP (this is in the opinion of the customs division) and is achieved by referring to the values on identical or similar vehicles.

Steps To Take When Calculating Customs Duty For Imported Vehicles In Zambia

 Collect vehicle information and FOB

 Check vehicle engine capacity: Zambia has implemented a surcharge on carbon emissions. The rates are as follows:

Engine Capacity in Cubic Centimeters Surtax Rate
1500cc and Below 50
Between 2001 and 3000cc 100
Between 2001cc and 3000cc 150
3001cc and above 200

Calculate CIF: The CIF value is calculated up to the border point in Zambia.

Convert amount to Kwacha

Duty Rates

The customs duty rates for motor vehicles described in the table below are expressed as percentages or at specific rates if the
VDP for a vehicle does not exceed K8, 000.00 for category (a) or K13, 333.33 for categories (b).

Description

Custom Duty

Excise Duty

VAT

$

(a)

Motor cars and other motor
vehicles (including station
wagons) principally designed
for the transport of less than
ten persons, including the
driver

25% or K2, 000.00 per
vehicle, whichever is the
greater

1. With 1500cc and below – 20%
2. Above 1500cc – 30%

16%

(b)

Pick-ups and trucks/lorries
with the gross weight not
exceeding 20 tonnes.

15% or K2, 000. per
vehicle, whichever is the
greater

10%

16%

(c)

Buses/coaches for the
transport of more than ten
persons

15% or K2, 000 per
vehicle, whichever is the
greater

1. With a seating capacity of ten
not exceeding 16 – 25%
2.Seating capacity exceeding 16 –
0%

16%

(d)

Trucks/lorries with gross
weight exceeding 20 tonnes

15%

0%

16%

(e)

Mechanical Horses(Road
Tractors for semi Trailers),
Track Laying Tractors, etc

0%

0%

16%

Note: Motor vehicles not included in the above table such as ambulances are imported at customs duty and VAT at 0%.

Calculating Customs Duty For Imported Vehicles In Zambia

The following are examples of how to calculate the customs duty of different vehicle types in Zambia.

Example 1 is a Toyota Corolla with an engine capacity of 1600cc. Assuming the cost is $1300, Insurance at $100, freight cost at $1,100 and other charges at 400$.

  1. Cost = US$ 1,300.00
  2. Insurance =US$ 100.00
  3. Freight (up to Durban) =US$ 1,100.00
  4. C.I.F. =US$ 2,500.00
  5. Other costs (Up to Chirundu) =US$ 400.00
  6. CIF Chirundu =US$ 2,900.00
  7. Given the exchange rate at the time of importation is K4.1925 for $1.
  8. VDP (CIF x rate of exchange) $2,900.00x K4.19250 =K12, 158.25
  9. Customs Duty @ 25% =K 3, 039.56
  10. Value for Excise
    (12,158.25+K3, 039.56) =K15, 197.81
  11. Excise Duty @ 30% =K 4,559.34
  12. Value for VAT purposes
    (K15, 197.81+K4,559.16) =K19,757.16
  13. VAT @16% =K 3, 161.15
  14. Carbon Tax (1600) =K100
  15. Motor vehicle fee =K128.00
  16. Asycuda Processing Fee =K50.04
  17. Total Tax Payable =K11,038.09

The following table covers two more examples:

Type Of Vehicle Engine Capacity/Payload CIF Value in $

(Up to Border post)

 VDP in K
(CIF*Exchange rate)		 Customs duty in K Value For Excise

(VDP+Customs Duty)

 Excise Duty  Value For VAT Purposes

(Value for Excise Duty+Excise Duty)

 VAT  Carbon Tax (1600cc) Total Tax Payable
Toyota Corolla 1600 cc 2900 (Assume Exchange rate is k4.1925 for 1$)

2,900$*4.1925=K12,158

 @25%=3039 12,158+3039=15,197 @30%=4,559 15,197+4,559

=19,757

 @16%=3,161.15 100 11,038
16 Seater minibus 3001 cc 5,260 (Assume Exchange rate is k4.2250 for 1$)
5,620*4.2550=23,913.10		 @15%=3,586.97 23,913.10+3,586.97

=27,500.07

 @25%=6,875 27, 500.16+6, 875.00=34,375 @16%=5,500 200 16,162
30-tonne truck Above 3001 cc 51,615 (Assume Exchange rate is k4.19250 for 1$)
51,615*4.1925=216,395.00		 @15%=32, 459.38 – – 216, 395.89+32, 459.38

=248,855

 @16%=39,816.84 200 72,476,2.00

These rates are important in helping you calculate the cost of shipping a vehicle from the UK to Zambia.

Note: These are just rough estimates and are to be used as a guide mainly and not as actual figures.

 

Sources

  1. Darcorridor guide to Customs duty for imported vehicles: https://www.darcorridor.org/images/CustomsRegulationFiles/Zambia/ZM_Docs.pdf


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