Trade and Cooperation Agreement between the EU and the UK
The Trade and Cooperation Agreement between the European Union (EU) and the United Kingdom (UK) provides for zero tariffs on all goods originating in the EU or the UK, provided that they comply with the appropriate rules of origin.
Thus, for motor vehicles originating in one party of the Agreement and exported to the other, preferential tariff treatment is granted, that is, zero import duties are paid.
In order to benefit from the preferential tariff treatment, a proof of origin must be presented during importation i.e., a “statement on origin” stating that the product qualifies for preferential treatment drawn up by the exporter, or the manufacturer of the vehicle.
Alternatively, proof may be based on the “importer’s knowledge” provided that the importer has all the necessary information to prove the origin of the vehicle. Such information may be obtained by the exporter or the manufacturer of the vehicle according to the provisions of the Agreement as regards rules of origin.
According to Annex 3 of the Agreement, the rule for motor vehicles is based on value. Therefore, in order for a motor vehicle to be considered as originating based on the knowledge of the exporter, evidence regarding the value of the final product as well as the value of all the non-originating materials used in the production of that vehicle, must presented to the Customs Department.
Motor vehicles that do not comply with the specific rules of origin are subject to the general duty rate applicable to any third country in accordance with the Common External Tariff of the European Union.
The import duty on goods imported from countries outside the EU is provided uniformly by TARIC, i.e. the electronic tariff of the European Union in all member states which can be accessed via the following address: http://ec.europa.eu/taxation_customs/dds2/taric/taric_consultation.jsp?Lang=en
The import duty rates for motor vehicles are differentiated according to the vehicle category, weight and engine capacity. The standard import duty rate for passenger cars (i.e. motor vehicles designed primarily for the transport of persons), either new or used is 10%.
For commercial type motor vehicles the import duty rate varies between 10% and 22%.
For motorcycles with an engine capacity up to 250cc the import duty rate is 8%, and for motorcycles with an engine capacity exceeding 250cc the import duty rate is 6%.
The import duty is calculated on the customs value, which includes the sum of the purchase cost plus the cost of transport and insurance (C.I.F. value = Cost + Insurance + Freight).
Value Added Tax (VAT)
Imports of motor vehicles from the UK are subject to the provisions of the Value Added Tax Law. That is, upon importation, motor vehicles are subject to the standard VAT rate which is currently 19% and it is calculated on the taxable value which consists of the sum of the customs value and the import duty.
For further information regarding VAT issues you may Contact the Tax Service of the Republic of Cyprus at the following email address: email@example.com.
Motor Vehicle Registration in the Republic of Cyprus
After a motor vehicle is cleared from Customs it must be registered before it can be licensed for road tax purposes. It is noted that with regard to the registration of motor vehicles that are imported from countries outside the EU, certain restrictions are applied by the Department of Road Transport, which is the competent authority for matters of motor vehicle registration and circulation in the Republic of Cyprus.
Concerning the registration and circulation of motor vehicles, importers are advised to contact the Department of Road Transport, prior to importing a motor vehicle so as to be informed if it can be registered in the Republic of Cyprus. Contact links are provided below:
For more information, you may write to the following address.