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Import & Excise Duties,VAT and IDF on Imported Cars
jerry
#1 Posted : Saturday, May 09, 2009 4:58:00 PM
Rank: Elder


Joined: 9/29/2006
Posts: 2,570
I came across the following details on car imports from a web site and thought it wise to share.

Assume a car worth 10,000 USD(or 800,000/= @ 80/= a dollar) CIF MSA.

1) Import Duty (ID) = 25% or 2,500 USD. Sub-total 12,500 USD

2) Excise Duty (ED) = 20% or 2,500 USD { i.e. 20% of 12,500 USD}

3) VAT @ 16% of vatabble value! = 2,250 {or 16% of (12,500+2,500)}

4) IDF (Import Declaration Form) fees of 2.75% = 474.275 USD {2.75 * (15,000+2,250)}

Total Cost of your unregistered vehicle = 17,724.375 USD or KES 1,417,950

Total charges on top of CIF is 7,724.375 USD (or KES 617,950)!!! No wonder KRA is promising to collect 600B in taxes.

To this you've to add clearance and as noted above regitration fees.

Comments from first hand experiences?



Ecs 11.2 Give portions to seven,yes to eight,for you do not know what disaster may come upon the land.
The opposite of courage is not cowardice, it's conformity.
flipthecoin
#2 Posted : Saturday, May 09, 2009 6:40:00 PM
Rank: Member


Joined: 7/3/2007
Posts: 20
Thanks Jerry.Just a clarification. Idf currently counts at 2.25% and value arrived at based on depreciation for a new car. The later especially drives the taxes up the roof.

Circumstance does not make the man; it reveals him to himself............... 'James Allen'
jerry
#3 Posted : Saturday, May 09, 2009 7:42:00 PM
Rank: Elder


Joined: 9/29/2006
Posts: 2,570
Thanks. Using IDF as 2.25% we end up with 17,638.125 USD(or KES 1,411,050). You seem to imply that the VATable value is normally above (CIF+ID+ED)? Any guidelines on how they arrive at a 'fair value'? I hope there is some semblance of transparency in kra.

Ecs 11.2 Give portions to seven,yes to eight,for you do not know what disaster may come upon the land.
The opposite of courage is not cowardice, it's conformity.
JkMwatha
#4 Posted : Saturday, May 09, 2009 8:44:00 PM
Rank: Veteran


Joined: 9/11/2007
Posts: 816
@jerry

as ft.coin says,

KRA calculates duty according to depreciation from new & has its own tabulation tables as seen in a previous post http://www.stockskenya.c...x?stk=1005&top=8415







DEPRECIATION FOR DIRECT IMPORTS





0 - 6 months



5%





6 - 12 months



10%





1 - 2 years



15%





2 - 3 years



20%





3 - 4 years



30%





4 - 5 years



40%





5 - 6 years



50%





6 - 7 years



60%





7 - 8 years



70%









The current Duty Valuation Template on KRA - website does not seem to open.

I am not sure where they get their prices for new cars from,but KMI (assuming KMI is authoritative) has current retail prices for new cars - http://www.kmi.co.ke/vehicle_retail_price.php

.......



Motobex.
Kaigangio
#5 Posted : Monday, May 11, 2009 10:09:00 AM
Rank: Elder


Joined: 2/27/2007
Posts: 2,768
@ jk mwatha,

KRA gets the prices from the new motorvehicle dealers,eg Toyota Kenya,Subaru Kenya,CMC,Amazon etc.

the depreciation is based on the prevailing market values at the time of application. i bet KRA has to continuously keep on upgrading its price list.


NEVER TALK OF A RHINO IF THERE IS NO TREE NEAREBY - ZULU PROVERB
...besides, the presence of a safe alone does not signify that there is money inside...
JkMwatha
#6 Posted : Monday, May 11, 2009 3:20:00 PM
Rank: Veteran


Joined: 9/11/2007
Posts: 816
Thanks Kaigangio - so who sets/control/regulates the retail prices? Is it the dealers? who decides?


Motobex.
Kaigangio
#7 Posted : Monday, May 11, 2009 3:34:00 PM
Rank: Elder


Joined: 2/27/2007
Posts: 2,768
I think this is determined at the source (manufacturer). The cost of freight and marine insuarance is added to the exfactory prices to bring it to the CIF which the KRA uses to compute the respective tax values

NEVER TALK OF A RHINO IF THERE IS NO TREE NEAREBY - ZULU PROVERB
...besides, the presence of a safe alone does not signify that there is money inside...
kangi
#8 Posted : Wednesday, April 10, 2013 10:47:26 AM
Rank: Member


Joined: 7/23/2009
Posts: 526
@Kaigangio

Am just about to import a Toyota Hiace and was looking at the crsp on the KRA website.How much does it cost in terms of;

1. Buying used one from the bazaars
2. Cost of duty as I can see they cost on average $8,500
Accept no one's definition of your life; define your life.
Tokyo
#9 Posted : Friday, April 12, 2013 10:03:45 AM
Rank: Veteran


Joined: 10/9/2006
Posts: 1,502
kangi wrote:
@Kaigangio

Am just about to import a Toyota Hiace and was looking at the crsp on the KRA website.How much does it cost in terms of;

1. Buying used one from the bazaars
2. Cost of duty as I can see they cost on average $8,500



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