By ugDriver Team

Are you wondering how much tax you’ll pay to the Uganda Revenue Authority for that motor vehicle you’re planning to import? Worry no more. We’re here to help you navigate the process without stress.

Before we dive into the step-by-step guide, let’s cover some basics about taxation that will be useful later. For those unfamiliar with the process, taxes for imported goods are calculated as a percentage of the price paid in the country of export, according to internationally agreed standards. This only applies if the importer has all the necessary commercial documents, particularly proof of payment.

For used motor vehicles, however, various laws worldwide allow for different valuation systems. One reason is that developing countries like Uganda could become dumping grounds for foreign waste if used vehicles were valued solely on the price paid in the country of export. Hence, revenue authorities provide value guidelines for commonly imported vehicles, which serve as the Free-On-Board (FOB) value for taxation purposes. Therefore, the FOB value is considered the price paid for the imported vehicle in the country of export.

The Uganda Revenue Authority regularly updates these value guidelines, available at URA Motor Vehicle Value Guide. Different tax heads are then derived from this FOB value as a percentage.

Used motor vehicles are subject to the following taxes, calculated as a percentage of the stated FOB value provided by the Uganda Revenue Authority:

• Import duty of 25%.
• Value Added Tax (VAT) of 18% (if not VAT exempt).
• Environment Levy of 0% for vehicles 0-8 years old; 50% for vehicles 9-15 years old.
• Withholding Tax (WT) of 6% (if not WT exempt).
• Infrastructure Levy of 1.5%.

Additionally, there are mandatory fees to be paid upon importation, including:

• Stamp duty of UGX 35,000.
• Form fees of UGX 18,000.
• Registration fees of UGX 1,500,000.

Step-by-Step Guide to Calculate Tentative Taxes

1. Visit URA Motor Vehicle Value Guide and download the Used Motor Vehicle guideline. Ensure you download the most recent version, as guidelines are regularly updated.
2. Search for the vehicle’s value by matching the model, fuel type, and year of manufacture to the vehicle you plan to import. The guideline covers most regularly imported vehicles. If your vehicle is not included, you can request a value from the URA Trade team by lodging a ticket through URA Touchpoint.
3. Once you have the guideline value, use the URA Motor Vehicle Tax Calculator. Input the value, fill in the required information, and you will receive an estimate of the taxes to be paid for the imported vehicle.

With this information, you can now estimate how much tax you’ll pay for most motor vehicles and plan accordingly. Happy car shopping!