How to Calculate Uganda Revenue Authority Car Taxes 

If the best things in life are free, the second best are used Japanese cars. Popular for top quality vehicle models and makes, Japan houses the largest selection of pre-used cars that are A-grade in terms of quality and performance. Because of its cost-efficiency, more people in Uganda choose to purchase a used Japanese car over buying a brand new vehicle.

However, along with the upfront cost of the vehicle are additional fees and charges associated with importing a used car from Japan. It is critical that you calculate the tax of the vehicle you are planning to purchase so you won’t be surprised by the import fees. This way, you can make an educated decision as you choose among different car models and makes available in the market.

In Uganda, an imported car’s tax is computed based on several factors. If you are not sure how to start calculating a used vehicle’s overall tax, you can use our calculator below. All you need to do is provide all the details on the box, and your total tax will pop out. Easy and convenient to use, our calculator will help you analyze the total expenditures of the vehicle before you make a purchase.

URA CALCULATOR

Estimate the price including taxes of your imported car with this Uganda Revenue Authority tax calculator.

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Calculating Uganda Revenue Authority Car Taxes

Thanks to our plug in, you can easily compute taxes before you import a used car in Uganda. But if you want to learn more about how the taxes are manually computed, you can turn to our comprehensive guide.

Defining Terms

To make the learning process simpler, let’s first define some of the terms you’ll encounter as you review the calculations.

  • FOB: A term that means “Free on Board,” FOB is the actual price of the vehicle. It excludes any additional costs like insurance, shipping, inspection fees and the likes.
  • CIF: CIF is an abbreviation that stands for cost, insurance and freight. It is the sum of the FOB added to shipment, insurance, inspection and other shipping-related costs. If you are importing vehicles to Uganda, the nearest ports are located in Mombasa, Kenya; Dar Es Salaam, Tanzania; Malaba, Kenya; and Kampala, Uganda. The taxes and freight costs vary depending on your pre-selected port of delivery.
  • URA: URA is an abbreviation for Uganda Revenue Authority.
  • TT: TT stands for Telegraphic Transfer.

How to Calculate Uganda Revenue Authority Car Taxes: A Step-by-Step Guide

Disclaimer: The values displayed on this section do not represent the value of the vehicle you wish to purchase. To compute the total amount for the importation of your chosen vehicle, you can either use our plug-in or manually perform your own calculations.

1. Firstly, select the car model and make.  

To begin the computation, choose a vehicle model and make. It is important to note that most dealers and auction houses display the FOB. Hence, you need to add the FOB to other additional costs like taxes, insurance and shipping fees to get the total value of the vehicle.

2. Collect data on the vehicle.

As aforementioned, In Uganda, different factors contribute to the total cost of the imported vehicle. The year of the manufacture, for instance, affects the tax rate levied on the vehicle. Since tax is computed based on the vehicle’s total value, newer cars are typically associated with higher taxes. Older ones, on the other hand, have lower taxes since they are lower in value.

Nonetheless, although older cars have lower taxes, importers may have to pay an Environmental Levy. An Environmental Levy is applicable to all vehicles over 5 years from their manufacture date. Other data you need to collect include the following:

  • Vehicle model and make
  • Year of manufacture
  • Model code
  • Engine capacity
  • Chassis number
  • Fuel type

3. Select Your Port of Delivery 

Then, select a port of delivery. Since you’re purchasing a used vehicle from Uganda, the ports of delivery you can choose from are located in Mombasa, Kenya; Dar Es Salaam, Tanzania; Malaba, Kenya; and Kampala, Uganda. Note that all international cars scheduled to be imported to Uganda should undergo a pre-inspection. Otherwise, you’d be charged with heavy penalties.

If, for instance, you selected Mombasa as a port of delivery and the CIF is 6,500 USD, this amount will appear in the invoice prepared by your car dealer or car auction house.

Since the CIF is expressed in US dollars (USD), it is converted to Uganda Shillings (Ug Shs). Hence, the total amount you need to pay is highly dependent on the current dollar-shilling conversion rate. Conversion rates vary depending on the bank’s prevailing rate.

Let’s get back to our example earlier and make an approximation. If 1 USD is equivalent to 3,600 Ug Shs, you have to multiply 6,500 by 3,600, which will result to 23,400,000 Ug Shs. This represents the TT you need to pay to your Japan-based car dealer.

When sending money, you can use your personal bank account. Since banks also charge clients for international clients, you also have to confirm the total bank and remittance charges you need to settle. Also, all importers are advised to pay in US dollars rather than in Japanese Yen or Uganda Shilling.

4. Let’s Do the Math 

You can calculate the total import taxes by entering it on the URA tax calculator. URA released a full list that displays the car specifications of different car models and makes, along with their CIF value. The list was created to standardize tax rates and avoid circumstances where people get invoices that are under the value of the vehicle they wish to purchase. You can view the list by visiting this link.

Once you find the CIF value of the vehicle, you just have to enter it to URA’s tax calculator to get an assessment of the total tax value of the vehicle.

NOTE: The URA has its own prevailing dollar-shilling exchange rate. The main purpose of the URA calculator is to offer you a tax assessment for USED vehicle models and makes. The value may change depending on factors that include the CIF, tax rates and current exchange rates. Before processing your payment, you must first acquire an import declaration, which is released by your clearing agent.

5. Lastly, add in other import-related expenditures

To calculate the total cost, identify other import-related expenditures such as the registration number plate and the clearing charges.

Let’s again go back to our example earlier and assume that the tax rate from URA totaled to 15,000,000, the registration number plate is 140,000 and the clearing charges is 250,000.

The breakdown of the computation is as follows:

CIF = 23,400,000 Ug Shs

Total Taxes: 15,000,000

Registration number plate = 140,000

Clearing charges = 250,000

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Sum: 38,790,000 

 

Based on the breakdown, the total amount of the vehicle on our example is 38,790,000. Again, this is just an example, and it does not represent the value of the vehicle you wish to import from Japan.

By using a proactive approach in computing your total expenditures, you can plan ahead and decide whether the vehicle is within your budget range. This way, you would be able to avoid unpleasant surprises as you import a used car to your country.

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