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Vehicles from countries outside the European Union - On payment of duties and taxes

last updated 11.9.2013


Annoucement

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.

Vehicles from countries outside the European Union - On payment of duties and taxes


1. Procedure on arrival of the vehicle in the Republic of Cyprus

All motor vehicles, when imported to Cyprus from a country outside the EU, either brand new or used, are subject to import duty and V.A.T..

Over and above, the following categories of motor vehicles, if imported to Cyprus from a country outside the EU, either brand new or used, are also subject to excise duties in accordance to national legislation, and in particular, ANNEX 4 to the Excise Duties Law No.91(I)/2004:

    • Saloon type vehicles, such as sedan, cabrio, estate, hatchback, coupe, etc;
    • Jeep-type off-road vehicles (4Χ4);
    • Vehicles with two rows of seats, known as double cabin cars (of Tariff Heading – TH 8704) with Gross Vehicle Weight not exceeding 3,5 tonnes;
    • Vans (TH 8704) having a gross weight not exceeding 2032 kg and a net cargo volume not exceeding 2 cubic meters;
    • Motorcycles (TH 8711) (Note: for motorcycles with an engine capacity not exceeding 600 cc., no excise duty is chargeable)
    Vehicles in the following categories are subject to 15% ad valorem excise duty:
    • “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 are importing such a vehicle, you must pay the duties and taxes it is subject to, so that you may be allowed to take possession of it, unless you place it in a customs warehouse, import it temporarily or re-export it.

2. Payment of duties and taxes

In order to pay the duties and taxes, you will have to complete an SAD form. If you cannot complete it on your own, you may employ the services of a customs clearing agent. In addition to the SAD you will have to produce to Customs the evidence required for the calculation of the vehicle’s customs value, i.e. the purchase price plus freight charges and insurance (if any) up to the port or airport of the Republic. For this purpose you are requested to produce the purchase invoice, bill of lading or airwaybill, or receipt for payment of the freight charges and insurance policy (if you have insured it). In addition you have to produce evidence of the vehicle’s engine capacity, if it is not shown on the invoice.

3. Calculation of import and excise duties and VAT

The import duty on goods imported from third countries is provided uniformly by TARIC, i.e. the electronic tariff of the European Union in all member states in the following address: http://ec.europa.eu/taxation_customs/dds2/taric/taric_consultation.jsp?Lang=en

3.1. Cars

3.1.1. Calculation of import duty for cars
For the vehicles shown in the table below, the import duty is differentiated according to the category, weight, engine capacity and ranges between 10% and 22%. To find out the exact rate of import duty on such a vehicle, you must log into the abovementioned address and enter the TH 8703 or 8704, as the case may be.

3.1.2. 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 3.1.1.1. which follows, you may calculate yourself the excise duty applicable to any vehicle.

No
Vehicles categories
Excise Duty Rate
Α
    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):

Zero

(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.

Β
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.
C
other vehiclesThe 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
Tel:22807000
Fax:22354030
e-mail:roadtransport@rtd.mcw.gov.cy

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.

3.1.1.1. Differentiations of the excise duty for cars

3.1.2.1. 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.

3.1.2.2. 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:

3.2. Motorcycles

3.2.1. Import duty for motorcycles

The rate of import duty on motorcycles is differentiated according to the engine’s capacity and ranges between 6% and 8%. For motorcycles with an engine capacity up to 250cc the import duty is 8%, and for motorcycles with an engine capacity exceeding 250cc the import duty is 6%.

3.2.2. Calculation of the excise duty for motorcycles

Motorcycles fitted with an engine over 600cc are subject to excise duty (motorcycles with engines up to 600cc are zero rated).

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).

3.2.2.1. Reductions of the excise duty for used motorcycles

3.2.2.1.1. Reductions of the excise duty 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
Age/Years
Rate of reduction %
1
17
2
27
3
37
4
47
Thereafter
Additional 9% for each consecutive year, peaking at a maximum of 95%
3.2.2.1.2. Reductions of the excise duty based on mileage

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, even if the latter is higher than the vehicle’s corresponding average.

4. V.A.T.

In all the abovementioned cases V.A.T., at a rate of 18%, is charged in addition to the import duty and excise duty. V.A.T. is calculated as follows: (purchase price + transportation costs + insurance + import duty + excise duty) X 18%.

5. Registration of Vehicles

After the payment of relevant duties and taxes the vehicle must be registered before it can be licensed for road tax purposes.

According to the existing Motor Vehicle and Road Traffic Legislation, a private motor vehicle can be registered in Cyprus provided its age prior to its importation is less than five years old, this counted from the date of its first registration.

For more information concerning registration and other provisions on this issue you are advised to contact with the Road Transport Department, as the competent authority, at the following address: roadtransport@rtd.mcw.gov.cy

On payment of the duties and taxes, Customs will issue to you the Form C.72A which you must produce to the Inland Transport Department with the other relevant documents for the inspection and registration of the vehicle

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.

Example 1

A used petrol saloon vehicle is 9 months old at the time of its importation to Cyprus from Japan 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. Its customs value is €6.000.

The duties and taxes payable are calculated as follows

(A) Import duty: €6.000 Χ 10% = €600

(B) Excise Duty

  • 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

(C) V.A.T.: (€6.000 + €600 + €3.033) x 18% = €9.633 x 18% = €1.734

Total Amount of taxes and duties payable: €600 + €3.033 + €1.734 = €5.367

Example 2
A used motorcycle is 5 years old at the time of its importation to Cyprus from the USA and it has covered 60.000 km (mileage). It is fitted with a 1500 cc engine and its customs value is €5.000

The duties and taxes payable are calculated as follows:


    · Import duty: €5.000 Χ 6% = €300
    · Initial Excise Duty: 1.500cc. Χ €2,56 = €3.840
    · Excise duty differentiations:
    o The initial excise duty is reduced by 56% due to the age of the motorcycle: €3.840 x 56% = €2.150
    o The remaining amount (€3.840 - €2.150 = €1.690) is reduced by €338 because of kilometers travelled beyond the corresponding estimated average (60.000km – (5 x 8.000km) = 60.000km – 40.000km = 20.000 km) which correspond to a reduction rate of 20% (20.000/500*0.50=20%) €1.690 Χ 20% = €338
    o Excise duty payable after reductions: €3.840 - €2.150 - €338 = 1352
    · V.A.T.: (€5.000 + €300 + €1.352) X 18% = 6.652 Χ 18% = €1.197
    · Total Amount of taxes and duties payable: €300 + €1.352+ €1.197 = €2.849.

7. Information

For more information, you may write to The Director:

Department of Customs and Excise at the following address:


Customs Headquarters,
1440, Nicosia.

Fax no: 22302031
E-mail: headquarters@customs.mof.gov.cy
For oral inquiries you may call any of the following telephone numbers of the Valuation Section at Customs Headquarters: 22601746, 22601748 or 22601650.




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