Here is how to change ownership of a Duty free motor vehicle in Uganda without paying import duty taxes. By following the instructions below, you are able to transfer an ambulance, milk truck, tourist van, refrigerated trucks, etc from the current owner into your name.
What are Duty free Motor vehicles?
Duty free vehicles are those types of vehicles that are exempted from paying Import duty taxes when imported into the country. Duty-free vehicles fall in the category of non-commercial purpose use and are therefore not subject to import taxes since they are not for profit making. Duty free vehicles are issued with White Numbers under Red plates.
How to register duty free vehicle in Uganda
- Appoint a URA customs clearing agent
- Provide everything about the vehicle
- The agent will capture entry at the URA portal
- URA will review all documents and approve
- The registration application will be generated
- Assessment will be issued for the bank payment
- Payment will be made to the bank
- The application will be approved
- Duty free numbers will be issued
The process of registering a duty free vehicle in Uganda is not any different from registering a normal private or commercial purpose vehicle. The only difference is not paying import duty taxes duty-free, while others must be those taxes in order for number plates to be issued. Duty-free vehicle applicants are required to provide particulars that clearly indicate that the purpose of the vehicle, in particular, is solely for the above, and also the applicant should provide all required documents that indicate the kind of work about the individual or company, or organization.
Who is eligible to register Duty free motor vehicles?
- Individuals
- Companies
- NGOs
- Government parastatals
For as long as you provide supporting documents, you are eligible to register a duty free motor vehicle in Uganda. If for example, you are a Ugandan returnee, I mean one who has been working from outside Uganda and has owned that vehicle from where you are coming from; you are exempted from paying taxes and therefore qualify for duty-free numbers.
Also, if you are in hospital services and want to register an Ambulance, you are eligible since that is for emergency purposes and able to get duty free plates. Another example is for companies dealing in the transportation of fresh fish, milk, and tourists, you qualify for duty-free numbers in Uganda.
How to transfer duty free vehicles with Red number plates?
- Write to the Chief Licensing Officer Ministry of Works and Transport
- Indicate the Duty free vehicle Number
- Indicate the Reason for the change of ownership
- Attach particulars of the Transferee including TIN, ID, and other supporting documents
- Take the vehicle for inspection and get a verification report
Submit all of the documents above, including any other important document you may have, for example, company documents showing that the transferee company qualifies to own a duty-free motor vehicle, or is exactly doing the same service as the transferer.
Your application will be received, reviewed and an appropriate decision determined. If approved, a change of ownership application will be initiated by the Supervisor MoWT Licensing, similarly to how forced vehicle transfers are done, and the new owners will be notified to come and pay all associated fees including vehicle transfer fees, and inspection, etc.
The application for change of ownership of a duty free motor vehicle will be approved. And the red numbers will stay since the purpose of the vehicle remains the same.
In situations where the application is rejected, then the new owners may be subjected to paying customs import duty taxes to clear the vehicle for transfer, and ordinary number plates will be issued upon clearing all required fees.
Final word.
Truth is that duty free red number motor vehicles can be transferred in Uganda without paying taxes. For as long as the service of the vehicle remains the same, and upon satisfying the concerned MoWT, or URS customs officer that the transferee is eligible, you are able to complete the change of ownership process.
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