Kra CRSP 2023: Templates, Calculator, Rates, and Fees for Importing Motor Vehicles into Kenya

Are you considering importing a motor vehicle to Kenya in 2023? If so, you've come to the right place. In this comprehensive guide, we will walk you through the essential information you need to know about the Kenya Revenue Authority's (KRA) CRSP 2023, including how to download the necessary templates, use the calculator, and understand the rates and fees involved in motor vehicle importation.

What Is Kra CRSP 2023?

Kra CRSP 2023, or the Current Retail Selling Price for 2023, plays a crucial role in determining the import duty, excise duty, VAT, and other fees associated with importing motor vehicles into Kenya. This value is provided by the Kenya Revenue Authority (KRA) and serves as the foundation for various calculations related to importing vehicles.

How to Download Kra CRSP 2023 Templates

To download Kra CRSP 2023 templates and ensure a smooth importation process, follow these steps:

1. Visit the official KRA website.
2. Navigate to the "Importation" or "Customs Services" section.
3. Look for the "Downloads" or "Forms" subsection.
4. Search for the Kra CRSP 2023 templates and select the relevant ones for your vehicle type.

These templates will simplify the documentation process and help you calculate import-related costs accurately.

Understanding Rates and Fees

Import Duty

Import duty is a crucial component of your total fees when importing a vehicle. The import duty rate varies depending on the type and specifications of the vehicle. Here are some key rates:

• Motor cars and other vehicles for transporting persons: 20% to 35%
• Diesel vehicles with varying engine capacities: 25% to 35%
• Vehicles with both combustion and electric motors: 25%
• Vehicles with only electric motors: 10%

Excise Duty

Excise duty is calculated based on the engine size of the vehicle. Rates range from 25% to 35% of the customs value, including import duty.

Value Added Tax (VAT)

VAT is charged at a standard rate of 16% and is applied cumulatively to the customs value, import duty, and excise duty.

Import Declaration Fees (IDF)

Import Declaration Fees are 3.5% of the customs value and are required for processing your importation documents.

Railway Development Levy (RDL)

RDL is 2% of the customs value and contributes to the development of railway infrastructure.

Required Documents for Importation

To facilitate the importation of your vehicle, you'll need to provide specific documents, including:

• Original Commercial Invoice
• Original Logbook from the country of importation, canceled in the country of origin
• Original Bill of Lading
• Pre-shipment inspection certificate (certificate of roadworthiness)
• Copy of your PIN certificate or certificate of Incorporation (for companies)

These documents are essential to ensure a smooth and legal importation process.

Calculating Car Duty in Kenya

Understanding how car duty is calculated in Kenya is crucial for budgeting and compliance. Here's a breakdown of the calculation process:

1. KRA provides the Current Retail Selling Price (CRSP) for your vehicle.
2. Customs Value is calculated using the CRSP value with depreciation applied.
3. Import Duty is 35% of the Customs Value.
4. Excise Duty is 20% to 35% of the Customs Value plus Import Duty.
5. VAT is 16% of the Customs Value, Import Duty, and Excise Duty.
6. IDF Fee is 3.5% of the Customs Value.
7. RDL Fee is 2% of the Customs Value.

Ensure you use the correct CRSP value and follow these steps accurately to calculate your car's duty.

Impact of Import Duty Increase

Recently, there has been an increase in import duty rates in Kenya, impacting the cost of importing vehicles. The import duty rate has risen from 25% to 35%, leading to higher costs for car buyers. This increase also affects excise duty, VAT, and other associated charges.

For example, importing a 2016 Subaru Impreza with a Customs value (CIF) of Ksh800,000 now incurs higher total duties due to the increased import duty rate. The impact on the total cost can be significant, so it's essential to consider these changes when planning your importation.

Strategies to Navigate Increased Costs

If the increased import duty rates are affecting your car buying plans, consider these strategies:

1. Increase Your Savings Rate: Save monthly money to accelerate your savings and reach your car ownership goal.
2. Explore Alternative Options: Look for more affordable car makes or models that meet your needs.
3. Wait for Sales or Promotions: Watch for discounts or promotions on your desired car model.
4. Check for Locally Used Cars: Compare prices of locally available cars with the cost of importing to see if buying locally is more cost-effective.
5. Be Patient and Reassess: Delay your purchase until prices stabilize or you've saved enough to cover the increased costs.
6. Consider Financing: Explore auto loan options to make your car purchase more manageable.

READ ALSO: How to Apply for KRA PIN Easily: Everything You Need to Know

Conclusion

Kra CRSP 2023, import duty, and associated fees are essential for importing vehicles into Kenya. Staying informed about the latest rates and regulations will help you make well-informed decisions when importing your dream vehicle. Remember the strategies to navigate increased costs and plan your importation accordingly. Importing a car can be a rewarding experience, and with the proper knowledge, you can navigate the process smoothly and efficiently.

FAQs

What is the CRSP 2023?

 CRSP stands for Current Retail Selling Price. It is crucial in calculating import duty and taxes for motor vehicles in Kenya. The KRA provides the CRSP value.

How can I download CRSP 2023 templates?

You can download the templates from the official KRA website. Ensure you have the latest version for accurate calculations.

What is the CRSP calculator used for? 

The CRSP calculator helps you determine the customs value, import duty, excise duty, VAT, and other fees for motor vehicle importation. It is available on the KRA's online platform.

What are the key rates and fees in motor vehicle importation? 

Key rates and fees include import duty (25%), excise duty (varies based on engine size and type), VAT (16%), import declaration fees (3.5%), and Railway Development Levy (2%).

What documents are required for motor vehicle importation? 

Required documents include:

• The original commercial invoice.
• Original Logbook from the country of importation.
• Original bill of lading.
• Pre-shipment inspection certificate.
• A copy of your PIN certificate or certificate of Incorporation (for companies).

How can I ensure a smooth importation process? 

To ensure a smooth process, use accurate calculations, have all required documents, and know the rates and fees involved in motor vehicle importation. Planning and preparation are critical to a successful importation.