last updated 11.9.2013
As from 9th September 2013 the Excise Duties Law 91(I)/2004 is amended in respect of the excise duties charged on motor vehicles for the transport of persons of TH 870321 - 870390 as well as on car derived vans of TH 8704.
It should be noted that for such motor vehicles that up to the 9.9.2013 were already transferred or imported in Cyprus but have not yet been released for free circulation and/or consumption, or were delivered with relief from excise duty under any law, or the excise duty was refunded, or were delivered free of excise duty for temporary use, the amount of excise duty will be charged on the lower amount calculated according to the previous Law 91(I)/2004 up to (No. 3) of 2013 or the new amending law (No. 4) no. 110(I)/2013.
The same treatment shall enjoy motor vehicles that have been shipped on a vessel destined for any legitimate port of Cyprus, up to the 9th September 2013.
1. Community status of the vehicle
Goods in free circulation in the EU move from one member state to another without payment of further customs import duty. To be exempted from paying further import duty in Cyprus, proof of Community status of the goods must be provided. If you are transferring a car to Cyprus for private use from another member state, you may prove its Community status by producing:
· T2L or Τ2LF document; or
· the number plates and the vehicle registration document issued by the previous member state.
The T2L or Τ2LF document can be obtained from the previous member state Customs Service or through your vehicle supplier or shipper.
In case of failure to provide the abovementioned proof of the vehicle’s Community status, the importation will be classed as having arrived from a third country and the vehicle will be liable to import duty in addition to the excise duty and VAT.
2. Procedure on arrival of the vehicle in the Republic of Cyprus
Certain goods are subject to excise duties, even if they arrive from another member state of the EU. Motor vehicles, in the following categories, are subject to excise duties in accordance to national legislation, and in particular, ANNEX 4 to the Excise Duties Law No.91(I)/2004:
Vehicles in the following categories are subject to 15% ad valorem excise duty:
· saloon type vehicles, such as sedan, cabrio, estate, hatchback, coupe, etc;
· Jeep-type off-road vehicles (4Χ4);
· double cabin cars;
· vans of tariff heading 87.04 having a gross weight not exceeding 2032 kg and a net cargo volume not exceeding 2 cubic meters;
· motorcycles having an engine of a cubic capacity exceeding 600 cc.
· “go kart” type motor vehicles, used only in closed and/or confined spaces, for entertainment purposes.
· amphibious motor vehicles, with a gross weight not exceeding 1000 kg, with three rows of wheels and all-wheel-drive, which are used for recreational or commercial purposes and which can carry two to four persons.
· "hovercraft" type motor vehicles that are designed to run both on water and soil.
· Mobile campers of CN 8703
· Old vehicles as defined in the Motor Vehicle and Traffic Law of 1972 as amended; and
· 4-wheel vehicles, which have the appearance of a motorcycle and cannot be not registered for circulation on public roads.
Vehicles not included in the above categories, such as trucks (pick-ups), buses, vehicles carrying more than nine persons including the driver, vans other than the above, passenger vehicles powered by an electric motor, etc., are not subject to excise duty.
If you bring such a vehicle, which is in free circulation, from another member state of the EU, you may leave the port or airport immediately without any customs procedure. If your vehicle is brought in by ship, you are required to furnish proof of Community status before you are allowed to remove the vehicle from the port. To do so you must fill in the form "Application for verification of community status".
3. Payment of excise duty
If you are bringing a vehicle to Cyprus, which is subject to excise duty, upon receipt of your vehicle from the port or airport, you must pay the excise duty due within 10 working days from the date of the verification of the vehicle’s community status, unless within this period you opt to:
· place it in a customs warehouse;
· send it to another member state of the EU; or
· export it to a third country.
In order to pay the excise duty, you will have to complete the SAD form. If you cannot complete it on your own, you may use the services of a customs clearing agent.
3.1.1. Calculation of the excise duties for cars
For cars listed under category A in the table below, the Excise Duty is calculated on the basis of the mass of carbon dioxide (CO2) emissions (combined cycle) of each vehicle.
For cars listed under category B in the table below, the Excise Duty is calculated on the basis of each vehicle’s engine capacity.
Using the table below and the differentiations explained in sub-section 184.108.40.206. which follows, you may calculate yourself the excise duty applicable to any vehicle.
Excise Duty Rate
Motor vehicles classified under T.H. 8703 21 – 8703 90 (excluding ambulances and hearses as well as pick-up type vehicles with two rows of seats known as double cabins) and Van type motor vehicles classified under T.H. 8704 with a Gross Vehicle Weight not exceeding 2032 kgrs and a net cargo area not exceeding 2 cubic meters.
|(a) For vehicles with carbon dioxide (CO2) emissions (combined cycle) less or equal to 120 grams per kilometre (gr/km):
(b) For vehicles with carbon dioxide (CO2) emissions (combined cycle) exceeding 120 gr/km but not exceeding 150 gr/km:
€25 per gr/km of carbon dioxide (CO2) emissions over 120 gr/km.
(c) For vehicles with carbon dioxide (CO2) emissions (combined cycle) exceeding 150 gr/km but not exceeding 180 gr/km:
(i) €750 plus
(ii) €50 per gr/km of carbon dioxide (CO2) emissions over 150 gr/km
(d) For vehicles with carbon dioxide (CO2) emissions (combined cycle) exceeding 180 gr/km:
(i) €2250 plus
(ii) €400 per gr/km of carbon dioxide (CO2) emissions over 180 gr/km.
|Motor vehicles classified under T.H. 8703 & 8704 with two rows of seats, known as “double cabin”, with a maximum Gross Vehicle Weight not exceeding 3,5 tonnes.|
€0,26 per c.c.
| other vehicles||The following vehicles are charged with excise duties at the rate of 15% AD VALOREM|
(A) motor vehicles of the “go-kart” type exclusively used in closed and/or enclosed areas for amusement purposes
(B) amphibious motor vehicles, of a gross weight not exceeding 1000kg, having three rows of wheels, six-wheel drive, used for amusement or professional purposes and which can transport two to four persons
(C) motor vehicles of the “hovercraft” type designed to travel both on water and on land;
(D) motorized caravans of CN Code 8703
(E) old vehicles as specified in the Motor Vehicles and Road Traffic Law of 1972 as amended; and
(F) vehicles with four wheels, having the appearance of a motor cycle and which are not registered for the purposes to be driven on public roads.
Provided that Motor vehicles powered by electric engines used for the transport of persons are zero rated
For the purposes of the application of the Excise Duty rates, corresponding to vehicles listed under category A in the above table, a verification of the mass of carbon dioxide (CO2) emissions (combined cycle) is required. For new motor vehicles, the mass of carbon dioxide (CO2) emissions is verified by the vehicle’s Certificate of Conformity (COC) whereas for used motor vehicles a certificate issued by the Registrar of Motor Vehicles (document TOM119A) is required.
In the event that the aforementioned verification is not presented to Customs, the applicable Excise Duty will be calculated on the basis of a rate that corresponds to CO2 emissions equal to 450 gr/km.
You may contact the Registrar of Motor vehicles at the following address:
27 Vasileos Pavlou, Engomi, 2412 Nicosia
Regardless of the excise duty rates listed above, an additional excise duty of €0,02 per c.c. of engine capacity is also imposed, irrespective of any differentiations or any relief applied on the amounts payable.
220.127.116.11. Differentiations of the excise duty for cars
18.104.22.168.1 Reduction of the excise duty for used cars according to the vehicle’s age and mileage
Notwithstanding any other provisions of the customs or other legislation, the term “used cars” for excise duty purposes means those registered in any country.
For used cars the total excise duty payable is reduced in accordance with the reduction rates as fixed in a Notice (only in greek) issued by the Director of Customs. To determine the reduction rates, the Director takes into consideration objective criteria, such as the age of the car, the kilometers it has travelled, its general condition,fuel type, its make and body type.
Apart from the reductions of the excise duty due to normal wear and tear of the car, for used vehicles which have been proved to cover a distance beyond the average kilometers (15000 km per year for cars fitted with petrol engines and 18000 km per year for cars fitted with diesel engines), the duty will be further reduced proportionally by a factor 0.20% per 500 km travelled beyond the average. The said reduction will not exceed 20% of the remaining balance of duty after the differentiations for normal wear and tear.
3.1.2. Software for the calculation of the excise duty for cars
The Department of Customs and Excise, in its effort to facilitate the public, has prepared a program which you can use on your own so as to calculate the excise duty (not the import duty) applicable to a certain car. Enter the particulars required by the software and you will have the payable amount of excise duty. Click here to download the program.
Motorcycles fitted with an engine over 600cc are subject to excise duty (motorcycles with engines up to 600cc are zero rated).
3.2.1. Calculation of the excise duty for motorcycles
Excise duty is charged by reference to the cubic capacity i.e. cubic centimetres (cc) of the engine. The following rates apply:
· For motorcycles with an engine capacity up to 600cc no excise duty is charged;
· For motorcycles fitted with an engine over 600cc but not exceeding 1000cc excise duty is €1.71/cc;
· For motorcycles with an engine over 1000cc excise duty is €2.56/cc;
Please note that excise duty is charged on the total cc of the engine. For example, a motorcycle fitted with a 1.500 cc engine will be subject to an excise duty of €3.840 (1.500 x €2,56).
22.214.171.124. Reductions of the excise duty for used motorcycles
126.96.36.199.1. Reductions based on the motorcycle age
For used motorcycles the total excise duty payable is reduced, based on the motorcycle age, in accordance with the reduction rates as fixed in a Notice (only in greek) issued by the Director of Customs (see table below):
Reduction of the Excise Duty on Motorcycles - Notice 59/2013
188.8.131.52.2. Reductions based on mileage
Rate of reduction %
|Additional 9% for each consecutive year, peaking at a maximum of 95%|
For used motorcycles, the remaining excise duty (i.e. excise duty after the reduction based on the motorcycle age has been applied) is further reduced based on the distance travelled (i.e mileage or kilometers travelled). The average annual mileage for motorcycles is estimated at 8.000 kilometers. Motorcycles which have been proven to have travelled a distance over their estimated average (i.e. age x average kilometers per year) receive a reduction of the remaining excise duty at a rate of 0,50% for every 500 kilometers travelled beyond their estimated average. The total of this reduction cannot exceed 50% of the remaining excise duty.
3.2.3. Software for the calculation of the excise duty for motorcycles
The Department of Customs and Excise, in its effort to facilitate the public, has prepared a program which you can use on your own so as to calculate the excise duty (not the import duty) applicable to a certain motorcycle. Enter the particulars required by the software and you will have the payable amount of excise duty. Click here to download the program.
3.3. Maximum excise duty reduction allowed
For both cars and motorcycles the total amount of the reductions (i.e. age and mileage) cannot exceed 95% of the initial excise duty (i.e. excise duty before any reductions have been applied). This means that in the event of a car or motorcycle whose age allows for a 95% reduction on the initial excise duty, no further reduction will be provided based on the distance travelled.
VAT is applicable only for New Means Of Transport (NMOT), transported to the Republic of Cyprus from other EU member states. For V.A.T. purposes a NMOT is a goods or passenger vehicle that meets either one of the two following criteria:
· it is a motor vehicle or motorcycle (other than a tractor) supplied six months or less after the date of its first entry into service, or
· it is a motor vehicle or motorcycle (other than a tractor) that has travelled 6,000 kilometres or less.
If the vehicle meets either of these criteria, it is treated as a new means of transport for V.A.T. purposes and V.A.T. is chargeable. V.A.T. at a rate of 19% is calculated on the purchase price plus the relevant excise duty payable. On the other hand, in order to treat a vehicle as used, for V.A.T. purposes, the vehicle must be acquired more than 6 months after the date of its first entry into service and at the time of its acquisition it must have travelled more than 6,000 kilometres.
5. Registration of Vehicles
After the payment of relevant taxes the vehicle must be registered before it can be licensed for road tax purposes. For registration and circulation fees you are advised to contact with the Road Transport Department, as the competent authority, at the following address: firstname.lastname@example.org.
6. Examples on how to calculate the excise duty
The following examples will help you to understand better how excise duty on vehicles is calculated. In all examples it is assumed that the importer has proven the Community status of the vehicles.
A used motorcycle is 5 years old at the time of its transfer to Cyprus from the UK and it has covered 45.000 km (mileage). It is fitted with a 650 cc engine.
A used petrol sedan vehicle is 9 months old at the time of its transfer to Cyprus from the United Kingdom and it has a mileage of 22.500 km. The cubic capacity of its engine is 1.789 cc and the carbon dioxide emissions are 184 gr/km.
The excise duty payable is initially calculated on the basis of a new vehicle and is thereafter depreciated based on the characteristics of the used vehicle:
- Initial excise duty (based on a new car with CO2 emissions of 180 gr/km): €2.250 + (4 x €400) = €3.850
- Excise duty differentiations for the used car of the example:
- 18.50% reduction on the initial excise duty because of the vehicle age (9 months) and type (sedan): €3.850 x 18,50% = €712
- 4,5% reduction on the remaining amount (€3.850 – €712 = €3.138) because of kilometers travelled over the corresponding estimated average for a petrol vehicle ((22.500–(15.000/12*9) = 22.500 – 11.250 = 11.250 km, 11.250/500 x 0.20% = 4.5%): €3.138 x 4,5% = €141
- Additional excise duty €0.02/c.c.: 1789 Χ €0.02 = €36
- Total excise duty payable: €3.850 – €712 – €141 + €36 = €3.033
The payable excise duty is calculated as follows:
For more information, you may write to the Director
· Initial excise duty: 650 cc Χ €1,71= €1.112
· The initial excise duty is reduced by 56% due to the age of the motorcycle: €1.112 x 56% = €623
· The remaining amount (€1.112 - €623 = €489) is reduced by 5% because of kilometers travelled beyond the corresponding estimated average (45.000 – (5*8.000) = 45000 – 40.000 = 5.000 km 5000/500*0,50=5%): €489 x 5% = €24
· Total excise duty payable €1.112 – €623 – 24 = €465.
Department of Customs and Excise, at the following address:
Fax no: 22302031
For oral inquiries you may call any of the following telephone numbers of the Valuation section at Customs Headquarters: 22601746, 22601748 or 22601650.