Last Updated 14.5.2021
Announcement:On 22.3.2019, the legislation related to Excise Duties on motor vehicles was amended by the Law No. 39(I)/2019, which was published in the Official Journal of the Republic of Cyprus No. 4693. As from that date, no Excise Duties are imposed on motor vehicles that are transported or imported to the Republic of Cyprus.
A. Procedure on Arrival of the Vehicle in the Republic of Cyprus
All motor vehicles, when imported to the Republic of Cyprus from a country outside the European Union (EU), either brand new or used, are subject to import duty and V.A.T..
In order for the import duty and V.A.T. to be paid, an SAD form must be completed. In addition to the SAD, 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 entry into the Republic of Cyprus) must be presented to Customs. To this end, importers are requested to produce the purchase invoice of the vehicle, bill of lading or air waybill, or receipt of payment for the freight charges and insurance policy (if the vehicle was insured).
Upon clearance of a used motor vehicle from Customs, in addition to the aforementioned documents, the original registration certificate for the vehicle from the country of importation must be presented to Customs.
In the case of new motor vehicles a EC Certificate of Conformity must be presented.
If a vehicle is not cleared from Customs, it may alternatively be:
- placed in a customs warehouse;
- imported in the Republic of Cyprus on a temporary basis (applies only to persons who visit the Republic of Cyprus and do not permanently reside there);
- transported to another EU member state; or
- exported to a country outside the EU.
B. Import DutyThe 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 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).
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.
D. Motor Vehicle Registration in the Republic of CyprusAfter a 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:
E. Further Information
For more information, you may write to the following address:
Department of Customs and Excise
Corner M. Karaoli and Gr. Afxentiou, Nicosia
Fax no: 22302031
For oral inquiries you may call any of the following telephone numbers of the Valuation Section at Customs Headquarters: 22601746 or 22601748.