One of the most common questions we receive at Driven Deals Ltd is: “How much will duty cost?” It’s a fair question, and the honest answer is — it depends on several factors. Here’s a clear breakdown of how URA calculates import duty on vehicles.
The Starting Point: CIF Value
Uganda Revenue Authority calculates duty based on the CIF value of your vehicle. CIF stands for Cost + Insurance + Freight — in other words, the total cost of the vehicle including its purchase price, insurance, and shipping charges. It’s important to note that URA uses its own reference values, so even if you paid less for a vehicle, URA may assess it at a higher value.
The Main Duties and Taxes
Once the CIF value is established, the following charges apply:
Import Duty: Currently 25% of the CIF value for most passenger vehicles.
Value Added Tax (VAT): 18% applied to the sum of CIF value plus import duty.
Withholding Tax: 6% for registered taxpayers, 15% for non-taxpayers.
Infrastructure Levy and other charges may also apply depending on the vehicle type and country of origin.
Vehicle Age Matters
Uganda restricts the importation of vehicles older than eight years from the year of manufacture. Importing a vehicle outside this limit will result in it being denied entry. Always confirm the manufacture year before purchasing.
An Example Calculation
For a vehicle with a CIF value of USD 5,000:
- Import Duty (25%): USD 1,250
- VAT (18% on USD 6,250): USD 1,125
- Withholding Tax (6% on USD 6,250): USD 375
- Approximate total tax: USD 2,750
This is a simplified example. Actual figures will vary based on engine size, vehicle category, and current URA assessments.
Let Us Handle It For You
Customs clearance is one of the most technical aspects of vehicle importation. Errors in documentation or classification can lead to delays, fines, or having to re-export your vehicle. At Driven Deals Ltd, our clearance team ensures your vehicle is correctly classified and all paperwork is in order from day one.
Contact us for a full cost estimate before you commit to any purchase.
