| Import Duty 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: hq@tax.mof.gov.cy. 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. |