URA TAX CALCULATOR

Used Motor Vehicle Tax Calculator

URA Used Car Import Calculations – Step by step guide

Welcome to cartax.ug, a fast and simple ura car tax calculator to determine the import duty on used cars importation to uganda. Importing a used car to Uganda involves several taxes and charges that can seem confusing at first. This guide drills down into all the taxes involved to explains how they are calculated using the Uganda Revenue Authority (URA)’s official valuation system. We’ll also show you how to use cartax.ug ura vehicle tax calculator (based on URA’s used mv database list).

Taxes and Levies on Imported Used Cars in Uganda

Used vehicles have multiple taxes and levies applied on the vehicle’s customs value (determined by URA’s valuation, as explained later) rather than what you actually paid for the car (Invoice value). Here are the main taxes and fees:

  • Import Duty (25%) – This is the basic customs import tax on the vehicle. For most used cars, the rate is 25% of the vehicle’s customs value It’s like a tariff charged to allow the car into Uganda. (Certain special vehicle types like certain trucks or machinery may have different duty rates, but 25% is normal for passenger cars.)

  • Value Added Tax (VAT – 18%) – Just like other domestic goods, imported cars are subject to VAT. The URA VAT rate as of 2025 is 18% VAT is calculated on the value of the vehicle plus any import duty (and excise, if applicable). In practice, URA adds the import duty to the car’s value, and then charges 18% on that total. This means VAT is applied on the car’s value + import duty

  • Withholding Tax (6%) – A 6% withholding tax is charged on the customs value of the vehicle. This is an advance income tax collected during import. If you are a Ugandan tax-registered business, this 6% can be claimed as a tax credit later. However, for most individual importers, this effectively becomes part of the import cost (non refundable). (Note: By law, if an importer is tax-exempt or has a special exemption from URA, they might not pay this.)

  • Infrastructure Levy (1.5%) – Uganda also has a small infrastructure levy of 1.5% on the vehicle’s customs value. This levy is for national infrastructure development (similar to how other countries charge a levy for roads or railway development). It’s a small percentage but still a cost to factor in. For example, if your car’s customs value is UGX 20,000,000, the infrastructure levy would be UGX 300,000.

  • Environmental Levy (up to 50%) – The environmental levy is a surcharge on older used vehicles. URA uses this levy to discourage importation of old cars. below is the breakdown:

    • Vehicles 8 years old or newer: No environmental levy is charged. For example, in 2025, car models for the year 2017 onwards (within 8 years) would not incur this environmental levy.

    • Vehicles older than 8 years (but not over 15 years): A 50% environmental levy . This is 50% of the car’s customs value. It essentially doubles the taxable amount for older cars. For instance, a 10-year-old used car valued by URA at UGX 20 million would have an additional UGX 10 million! charged as environmental levy. _(Originally, the threshold was 5 years, but it was extended to 8 years; now any car older than 8 years attracts this levy

    • Vehicles older than 15 years: These are no longer allowed. Since 2018, Uganda banned importing cars above 15 years age to curb pollution and accidents. There are exemptions on certain heavy commercial vehicles like trucks, tractors, and road construction equipment , but passenger use cars above 15 years old are banned.

  • Registration Fees (≈ UGX 1.5–2 million) – Once your car clears customs, you must register it in Uganda and get the number plates. This is a one-time registration fee payable to URA. The fee ranges based on engine size and vehicle type. For ordinary cars (sedans, saloons, small SUVs), registration is about UGX 1.5 million. Larger engines (e.g. big SUVs, trucks) cost slightly more (up to around UGX 1.7–2 million) (Note: this fee is not part of the import “taxes” per se, but it’s a mandatory cost to get the car on the road.)

  • Other Small Fees – There are a few minor charges to be aware of:

    • Form Fee: About UGX 20,000 (for processing the import declaration forms; for instance, a form fee of UGX 18,000 is commonly mentioned.
  • Third-Party Insurance: Before you can drive the car out, you’ll need at least the basic third-party insurance. This might cost around UGX 30,000–80,000 for a car.(the price varies with coverage and insurer). This isn’t a tax or URA fee, but it’s a legal requirement to have insurance.

How URA’s Car Valuation System Works (Customs Value vs. Actual Price)

An important thing to understand is that URA’s import taxes are not based on what you paid for the car (the invoice price). Instead, URA uses an official valuation list – commonly known as the Motor Vehicle Indicative Value Guide – to determine the car’s customs value. So, this means:

  • URA maintains a database of indicative CIF values (Cost, Insurance & Freight) for virtually every car make, model, and year. The database is published whenever its updated and can be downloaded from the URA website. It includes details like the model, engine size, and value in USD for customs purposes.
  • During car import, customs officers will lookup the vehicle in URA’s valuation list to get the standard value for that make/model/year. For example, if you imported a 2008 Toyota Premio, URA might have an official value (let’s say it’s around $4,000 CIF for that car – just as an example). Even if you bought the car cheaper (or more expensively), URA still uses their preset value.
  • Taxes (duty, VAT, etc.) are then calculated on this URA value, not on your invoice. URA introduced this system because many importers in the past undervalued invoices. cartax.ug calculator is built on this URA database: it uses the official URA valuations and the current URA exchange rate to compute your payable taxes.

Why this matters: If you got a great deal on a car online and paid, say, $3,000 for a car that URA values at $5,000, you’ll still be taxed on $5,000. Conversely, if you paid more than URA’s value, you won’t be taxed extra beyond the official valuation. Knowing the indicative value helps you avoid surprises. (There was a recent court ruling in 2023 that URA should revert to using actual transaction values for car imports, URA appealed this ruling and as of April 2025, this valuation list method is still in use.)

Using Cartax.ug's URA car tax calculator

Our website offers a car search-based tax calculator that makes it easy to estimate all these taxes in one go. Here’s how to use it:

  1. Enter the Car Details: Use the search fields to input your vehicle’s make, model, and year. For example, type Toyota premio 2020. You will see a list of all model of toyota premio for 2020.

  2. Select the Exact Match: After typing the model or year, you will see a dropdown of matching entries. Select the one that exactly matches your car. Sometimes there are multiple variants of a model – for instance, different engine sizes or trims – so pick the correct one. (The valuation depends on engine capacity, so a 1500cc model will have a different value than a 2000cc model.)

  3. View the Tax Breakdown: The result will show a breakdown of each tax and the total. You’ll see the lines for Import Duty, VAT, Withholding Tax, Infrastructure Levy, Environmental Levy (if applicable), and the total import tax.

  4. Adjust or Try Other Models: The search tool is available on all pages, if you need to change the car, just search again.

Cartax.ug ura tax calculator uses official URA data, it provides a reliable estimate of what you’ll actually pay. It eliminate guesswork and saves you time, you don’t have to manually apply percentages or find URA’s valuation PDF. All you need are the car details, and the tool does the math for you with the latest rates and valuations.

Paying the Taxes and Clearing the Vehicle

After calculating and knowing your expected taxes, how do you actually pay and get your car released? Here’s a brief rundown of the process after your car arrives at the port (Mombasa or Dar es Salaam, since Uganda is landlocked) and comes to Uganda:

  1. Customs Declaration: You will need a clearing agent to pay car taxes. The clearing agent will fill the online customs declaration (via URA’s web portal). This involves providing the vehicle details, your TIN Number, and other required documents. URA then assesses the declaration and determines the taxes due.

  2. Required Documents: To clear a used car, you will need to provide:

    • Original Commercial Invoice for the car (proof of purchase price, though taxes will be on URA value, the invoice is still required).
    • Original Bill of Lading (the shipping document from the freight company) or if the car came over land, the transport documents.
    • Original vehicle logbook/registration from the country of origin (to prove ownership and age of the car).
    • Pre-shipment inspection certificate: Uganda requires used cars to undergo Road Worthiness Inspection before shipment. So, if the car is from Japan, a JEVIC inspection certificate is needed. This confirms the car was checked for standards.
    • Your TIN and identification: You (the car owner) should have a URA TIN number. If you don’t have one, you must register for one as it’s needed for all import transactions. Also, a copy of your ID/passport is required by the clearing agent for their file.
    • Any applicable permits or exemptions: (Most people won’t have these, but if you are a returning Ugandan resident entitled to a tax exemption, or importing under a special program, you’d need the paperwork proving that status.)

    Have these documents ready to ensure a smoother clearance.

  3. Tax Payment: Once URA assesses the entry, they will provide an assessment with the amount of taxes to pay. (Import duty, VAT, WHT, etc., as calculated). The clearing agent will then generate a Payment Registration Number (PRN) in URA’s system for the total amount due. You can then pay the import taxes using that PRN at any URA designated bank or Banking agent or even via mobile money. URA will receive the payment and mark your customs entry as “paid.” (Try to pay early to avoid any storage fees at the bonded warehouse or port, if the car stays at the port or bond beyond a certain free period, you will incur demurrage or storage charges separate from URA.)

  4. Customs Release: After payment, URA issues the release document. The clearing agent then proceeds to clear the vehicle from the bonded warehouse or port. The vehicle will undergo a final verification and then be released for you to take possession. If the car was cleared at Mombasa or Dar port and came in transit to Uganda, it would first be trucked or driven to Uganda under bond, (You will pay for this too) and then cleared at the border (Malaba, Busia, etc.) in a similar way with taxes paid at the border.

  5. Registration and Number Plates: Now that the car has cleared customs, the last step is to register it for Number plates. The clearing agent will submit the application for registration to URA. You pay the one-time registration fee and URA will issue a set of number plates and online pdf logbook (ownership document) in your name. You need a national ID, proof of insurance cover, and the clearance certificate, to collect the plates.

  6. Pick-up and Insurance: With you new shiny number plates attached, you can now take you new car for its first test drive. Don’t forget to gum the third-party insurance top avoid issues with traffic officers. congratulations – your new car is now fully cleared and registered!.

Tips for First-Time Importers

  • Use the Calculator Before You Buy: If you’re choosing what car to import, run a few searches via cartax.ug ura tax calculator first. You might discover, for example, that a 2016 model will cost significantly more in ura taxes than 2017 model (because of the 50% levy).
  • Budget for All Costs: Don’t spend all the money on buying the car alone, you’ll need additional funds for taxes, shipping, clearing agent fees, registration, insurance, and possibly transport from the port. Plan your budget with that in mind.
  • Work with a Reputable Clearing Agent: The clearance process is complex for a newcomer. Get a good licensed clearing agent to handle the paperwork and ensure you don’t face compliance issues. The Agent fee is worth the hassle it saves and since they do this everyday, they will clear the car faster.
  • Check that Pre-Shipment Inspection is Done: URA requires used vehicles to be inspected for road-worthiness before shipping. If you skip this, URA could penalize or even deny entry for the car. Most vehicle exporters (from Japan, UK, etc.) will help with the inspection – just confirm it’s processed and you have the certificate.
  • Know the Year Cut-offs: You cannot import over-15-year-old cars. If someone abroad is offering you a 1990s or early-2000s car for cheap, it’s not worth it – it won’t be allowed in. Also, if the car is right at the 15-year mark, be very careful with timing. For instance, a car manufactured in January 2010 became 15 years old in January 2025 – by then it’s effectively not allowed. stick to vehicles that are within the limit.
  • Plan for Registration: After paying URA duties, you still need some ka money for registration and plates. Some Agent don't disclose this and surprise you on collection day. Just plan beforehand or ask the agent if his quote includes this.

If you need any assistance, don't hesitate to reach out to our team.

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