Import tax on a car is rarely one rate. It is a stack of charges — customs duty, then excise or registration tax, then VAT or GST — and each layer is usually calculated on a value that includes the layers beneath it. That is why two countries with the same headline duty rate can produce very different bills.
The short version
- Duty is usually a percentage of the customs value: the price plus freight and insurance to the border.
- Later taxes are often charged on a value that includes the duty, so the stack compounds.
- A VAT-registered dealer can often recover import VAT; duty, excise and registration tax are generally sunk costs.
- Rates are set by each country's tariff and finance laws, and change. The country section below cites the authority and the date checked.
Import tax is a stack, not a rate
Customs duty is charged first, on the customs value. Most countries then add one or more consumption or registration taxes on cars, and finally VAT or GST on the total so far. Some add small fixed-rate levies on the customs value, such as Kenya's Import Declaration Fee and Railway Development Levy. The total is the sum of the stack, not any one rate in it.
The five kinds of charge you will meet
| Charge | Usually charged on | Example |
|---|---|---|
| Customs duty | Customs value (price + freight + insurance) | UK: 10% third-country rate on used cars |
| Excise / special consumption tax | Customs value plus duty | Kenya: by engine size and fuel; Mauritius: by engine capacity |
| Age-based excise | Customs value, by age band | Tanzania: extra excise from eight years old |
| Registration tax | A national valuation or CO₂ and size | Ireland: VRT on the Irish open-market price; Malta: CO₂ and length |
| VAT or GST | Everything above | Ireland 23%, Cyprus 19%, UK 20%, Kenya 16%, NZ 15% |
Examples from the official sources cited in each country's section below. Rates change; check the authority before you rely on one.
Why the order of calculation matters
Because each layer is usually charged on the total beneath it, a rise in an early layer pushes up every layer after it. In the UK, GOV.UK states that import VAT is charged on the cost of the vehicle, delivery and extra charges, and the customs duty — so a higher duty means more VAT as well.
- Convert the price, freight and insurance at the customs exchange rate.
- Apply customs duty to that customs value.
- Apply excise or special taxes to the base the law specifies — often value plus duty.
- Apply any fixed-rate levies to their own base.
- Apply VAT or GST to the total so far.
- Add registration tax, which may use a different value altogether.
The detail of the first step — what counts in the customs value and when a schedule replaces your invoice — is in how customs values an imported car.
What does your country charge?
Choose the country you import to. Each section lists the charges its own authorities set out, with the source and the date it was checked. Where two official documents disagree, the section says so rather than choosing one.
| Country | Duty and taxes |
|---|---|
| The UK charges customs duty, then 20% import VAT on a value that already includes the duty. | |
| A car from outside the EU pays customs duty, then 23% import VAT, then Vehicle Registration Tax (VRT) on registration. | |
| Malta charges a registration tax set by the car's CO₂ emissions and length, plus customs duty and VAT on a car imported from outside the EU. | |
| A car from outside the EU pays 10% import duty and then 19% VAT on the customs value plus the duty. | |
| Kenya charges import duty, excise duty, 16% VAT, an Import Declaration Fee and the Railway Development Levy, all based on the customs value. | |
| Tanzania charges import duty, VAT and excise duty, with extra excise on a used car that rises with its age. | |
| The Uganda Revenue Authority assesses import duty, VAT and other levies at entry; confirm the rates for your exact vehicle with URA, as they are set in each year's finance measures. | |
| Mauritius charges excise duty set by engine capacity (or by power for an electric car), plus 15% VAT. | |
| Jamaica Customs assesses duty and taxes on an imported car; confirm the rates for your exact vehicle with the Jamaica Customs Agency before you price it. | |
| The Customs and Excise Division assesses duty and taxes on an imported car; check the Ministry of Trade's budget measures on motor vehicles for the rates in force. | |
| GST at 15% is charged on the New Zealand value of the car plus any duty payable, freight and insurance. | |
| Sri Lanka charges customs import duty, excise duty and luxury tax on vehicles, and the rates change often — the Customs tariff for the month of import is the only safe figure. |
Choose a country for its full rules and the official sources, checked 27 October 2026.
Duty and taxes · United Kingdom
The UK charges customs duty, then 20% import VAT on a value that already includes the duty.
- Third-country duty on a used passenger car is 10% (UK tariff, commodity 8703 23 90 00).
- A car that originates in a partner country can enter at a preferential rate — Japan's reached 0% on 1 February 2026 — but only on an origin claim the importer can evidence. Japan Customs warns that a used car qualifies only if it can be proved originating when built, and that its manufacturer is not obliged to supply that proof.
- A VAT-registered business can reclaim import VAT, or account for it on its VAT return through postponed VAT accounting instead of paying it at the border.
- A dealer cannot use the VAT margin scheme on a car it imports itself, so VAT is charged on the full selling price when the car is sold.
Sources for United Kingdom, checked 27 October 2026:
- Commodity 8703 23 90 00 — used passenger cars, 1,500–3,000cc — UK Integrated Online Tariff
- Application of the Japan–EU and Japan–UK rules of origin to used goods (leaflet) — Japan Customs
- Check when you can account for import VAT on your VAT Return — HMRC
- Check if you can use a VAT margin scheme if you import from, or export to, countries outside the UK — HMRC
Duty and taxes · Ireland
A car from outside the EU pays customs duty, then 23% import VAT, then Vehicle Registration Tax (VRT) on registration.
- Revenue's guidance on cars from Great Britain applies customs duty of 10% on the customs value of a car that does not qualify for preferential origin.
- Import VAT is charged at the standard rate, 23%, on the customs value plus the duty, and must be paid before the car is released from customs control.
- VRT is calculated on the car's Open Market Selling Price (OMSP) in Ireland, not on the price you paid for it.
- Revenue notes that customs duty cannot be recovered, even by a VAT-registered trader.
- Japan-built cars can qualify for 0% duty under the EU–Japan agreement, but Japan Customs warns that a used car qualifies only if its origin when built can be proved.
Sources for Ireland, checked 27 October 2026:
- VAT implications of importing vehicles from Great Britain and Northern Ireland — Revenue
- Tax and Duty Manual: VAT and VRT on transactions involving motor vehicles — Revenue
- Vehicle Registration Tax — Revenue
- Application of the Japan–EU and Japan–UK rules of origin to used goods (leaflet) — Japan Customs
Duty and taxes · Malta
Malta charges a registration tax set by the car's CO₂ emissions and length, plus customs duty and VAT on a car imported from outside the EU.
- For a passenger car (category M1), Transport Malta calculates registration tax from the CO₂ figure, the registration value and the vehicle's length.
- A minimum registration tax applies to a used car imported from outside the EU that is more than five years old, counted from the year of manufacture; electric cars and plug-in hybrids with more than 50 km of electric range are exempt from that minimum.
- Since 1 January 2021 a car from the UK is a third-country import, and customs duty and VAT apply.
Sources for Malta, checked 27 October 2026:
Duty and taxes · Cyprus
A car from outside the EU pays 10% import duty and then 19% VAT on the customs value plus the duty.
- Cyprus Customs states that, from 22 March 2019, no excise duty is imposed on motor vehicles imported into Cyprus.
- Road tax after registration is set by the car's CO₂ emissions.
Sources for Cyprus, checked 27 October 2026:
- Vehicles from countries outside the European Union — on payment of import duty and VAT — Cyprus Customs & Excise Department
- Excise duties — general information — Cyprus Customs & Excise Department
- Running and growing your business — registering a vehicle — Business in Cyprus (Government of Cyprus)
Duty and taxes · Kenya
Kenya charges import duty, excise duty, 16% VAT, an Import Declaration Fee and the Railway Development Levy, all based on the customs value.
- KRA's own procedure page lists import duty at 25%, the Import Declaration Fee at 3.5% and the Railway Development Levy at 2%; press reporting since 2024 puts import duty at 35% following an East African Community tariff revision. Confirm the rate in force with KRA before pricing a car.
- Excise duty depends on fuel and engine size: KRA lists 20% for a 1,000–1,500cc petrol engine, 25% for 1,500–3,000cc petrol and for hybrids, 35% above 3,000cc petrol or 2,500cc diesel, and 10% for a fully electric car.
- VAT at 16% is charged on a value that includes the duty and excise.
Sources for Kenya, checked 27 October 2026:
- Importation procedure for motor vehicles — Kenya Revenue Authority
- A breakdown of vehicle importing charges and taxes — The Standard (press report of the official notice)
Duty and taxes · Tanzania
Tanzania charges import duty, VAT and excise duty, with extra excise on a used car that rises with its age.
- The Finance Act 2026, in force from 1 July 2026, sets the age excise on imported used vehicles at 18% for eight to ten years old, 35% for over ten up to twenty years, and 40% for over twenty years.
- The Citizen reports that the same Act brought engines of 1,000cc or less, previously exempt, into excise at 5%.
Sources for Tanzania, checked 27 October 2026:
- The Finance Act, 2026 — Tanzania Revenue Authority
- Importing a used car now costs more as Finance Act takes effect — The Citizen (press report of the official notice)
Duty and taxes · Uganda
The Uganda Revenue Authority assesses import duty, VAT and other levies at entry; confirm the rates for your exact vehicle with URA, as they are set in each year's finance measures.
Sources for Uganda, checked 27 October 2026:
- Uganda Revenue Authority — URA
Duty and taxes · Mauritius
Mauritius charges excise duty set by engine capacity (or by power for an electric car), plus 15% VAT.
- MRA's motor-vehicles page runs from 0% excise for a combustion car up to 550cc to 100% above 2,000cc, and taxes electric cars by power rating at 15% or 25%.
- MRA's older duty-calculation guide shows different engine bands for the same category. Confirm the bands in force with MRA before you price a car.
Sources for Mauritius, checked 27 October 2026:
- Customs — motor vehicles — Mauritius Revenue Authority
- How to calculate duty and taxes payable on vehicles — Mauritius Revenue Authority
Duty and taxes · Jamaica
Jamaica Customs assesses duty and taxes on an imported car; confirm the rates for your exact vehicle with the Jamaica Customs Agency before you price it.
Sources for Jamaica, checked 27 October 2026:
- Motor vehicle — general information — Trade Board Limited
Duty and taxes · Trinidad and Tobago
The Customs and Excise Division assesses duty and taxes on an imported car; check the Ministry of Trade's budget measures on motor vehicles for the rates in force.
Sources for Trinidad and Tobago, checked 27 October 2026:
- Customs and Excise Division — Ministry of Finance
- Budget measures on motor vehicles (used and new) — Ministry of Trade, Investment & Tourism
Duty and taxes · New Zealand
GST at 15% is charged on the New Zealand value of the car plus any duty payable, freight and insurance.
Sources for New Zealand, checked 27 October 2026:
- Fact sheet: importing goods for business or commercial use (April 2026) — New Zealand Customs Service
Duty and taxes · Sri Lanka
Sri Lanka charges customs import duty, excise duty and luxury tax on vehicles, and the rates change often — the Customs tariff for the month of import is the only safe figure.
- A 20% customs import duty on motor vehicles took effect on 28 January 2025, and Gazette 2421/43 added a 50% surcharge on that duty from 1 February 2025 for one year. Check with Sri Lanka Customs whether the surcharge was renewed.
- The Customs tariff carries separate lines for many cars by age, such as 'not more than three years old' and 'more than three years old'.
Sources for Sri Lanka, checked 27 October 2026:
- Mid-Year Fiscal Position Report 2025 — Ministry of Finance, Sri Lanka
- Gazette Notification No. 2421/43 (31 January 2025) — customs surcharge — Ministry of Finance, Sri Lanka
- National Imports Tariff Guide 2025 — Chapter 87 — Sri Lanka Customs
Tax rates on imported vehicles change, frequently in annual finance laws. This page reports what each authority published when it was checked. Confirm the rate for your car's exact tariff code, age and engine with the authority or a licensed clearing agent before you commit.
Which taxes a dealer gets back
- Import VAT or GST is usually recoverable by a registered business through its returns. In the UK, a VAT-registered business can account for it on the return through postponed VAT accounting instead of paying at the border.
- Customs duty is generally not recoverable. Ireland's Revenue states plainly that customs duty cannot be recovered.
- Excise and registration taxes are generally part of the car's cost.
- The margin scheme may not apply to cars you import. HMRC states that a UK business cannot use a margin scheme on goods it imports, other than works of art, antiques and collectors' items, so VAT falls on the full selling price.
How to check a rate before you buy
Find the car's commodity code under heading 8703 in your country's customs tariff — the code changes with fuel, engine size and whether the car is new or used. Read the rate from the official tariff or the revenue authority's motor-vehicle page, note the date, and ask a licensed clearing agent to confirm it for the specific car. Then put every line into a landed-cost calculation before you bid or buy.
If the cars and destination are settled, you can send a dealer inquiry and set the quote against your own calculation. The rest of the process is in the dealer's guide to sourcing cars overseas.