Cars from member states of the European Union - On payment of excise duties and VAT

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 exempt from paying further import duty in Cyprus, proof of Community status of the goods must be provided. If you are transferring to Cyprus a car 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 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 above mentioned proof of 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
Certain goods are subject to excise duty, even if they arrive from another member state of the EU. Motor vehicles, in the following categories, are subject to 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 space not exceeding 2 m3;
• motorcycles having an engine of a cubic capacity exceeding 600 cc.

If you accompany such a vehicle from another member state of the EU, provided it is in free circulation, you may leave the port or airport immediately without any customs procedure.

If your vehicle is brought in unaccompanied by ship, you are required to furnish proof of Community status before you are allowed to remove the vehicle from the port.

However, in both cases, you are required to declare the vehicle to the nearest Customs Station within 24 hours from the date of its arrival using form ED5 (in both Greek and English), in order to pay the excise duty and VAT, if the latter is payable. If a public holiday or weekend follows the date of arrival, you must make the declaration on the first working day after the expiration of the 24 hours deadline.

3. Payment of excise duty
You must pay the excise duty due within 10 working days from the date of the vehicle’s arrival in the Republic, 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 form SAD. If you cannot complete it on your own, you may use the services of a customs clearing agent.

3.1. Calculation of excise duty
The excise duty is calculated on the basis of the capacity of the vehicle’s engine and this is differentiated according to: -

• the mass of carbon dioxide (CO2) emissions.
• the age of the vehicle, the kilometers it has done, its general condition, the type of its transmission, its make and type, in accordance with the reduction rates as fixed in a Notice issued by the Director of Customs.

Using the table below and the differentiations which follow, you may calculate on your own the excise duty on any vehicle.

An additional excise duty of 1 cent per cc of engine capacity is also imposed.

3.2. Differentiations because of the carbon dioxide
The excise duty for category A is differentiated as follows, according to the mass of carbon dioxide emissions (CO2) (combined cycle), as mentioned on a certification issued by the Registrar of Motor Vehicles for used vehicles:

• A. For emissions up to 120 gr/km, a 30% reduction
• B. For emissions exceeding 120 gr/km but not exceeding 165 gr/km, a 20% reduction
• C. For emissions exceeding 165 gr/km but not exceeding 200 gr/km, a 10% reduction
• D. For emissions exceeding 200 gr/km but not exceeding 250 gr/km, a 10% increase
• E. For emissions exceeding 250 gr/km, a 20% increase

If the abovementioned certification is not produced, the carbon dioxide emissions are considered as exceeding 250 gr/km and the total excise duty payable is increased by 20%, as in case E above.

For the issue of the certification by the Cyprus Road Transport Department , you may apply to the main offices of the Department at the following address:
Kameris Court
17, Vasileos Pavlou,
Nicosia
Phone nos: 22807121 & 22807107
Fax no.: 22354030
E-mail: dirdrt@cytanet.com.cy

3.3. Differentiations of excise duty on used cars
Notwithstanding any other provisions of the customs or other legislation, used cars 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 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 done, its general condition, its gear box, its make and type.

3.4. Examples how to calculate 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 proved the Community status of the vehicles.

Example 1
A used saloon vehicle is 9 months old at the time of its transfer to Cyprus from the United Kingdom on the 17 November 2006. The cubic capacity of its engine is 1789 cc and the carbon dioxide emissions are 180 gr/km.

The excise duty payable is calculated as follows:

• Initial excise duty: 1789 Χ £2,00= £3.578
• This amount is reduced:
• by 10%, because of the carbon dioxide emissions: £3,578 - £357.80 (10%) = £3,220
• by 12.36%, because of its age (9 months) and type (sedan) : £3220 - £398 (12.36%) = £2.822
• Additional excise duty £0.01/c.c.: 1789 Χ £0,01 = £18
• Total excise duty payable: £2.822 + £18 = £2840

Example 2
A used cabrio car is 6 years, 7 months and 10 days old at the time of its transfer to Cyprus on 15 November 2006. Its engine cubic capacity is 2499 c.c. and the carbon dioxide emissions are 250 gr/km.

The payable excise duty is calculated as follows:

• Initial excise duty: 2499 Χ £3.50 = £8.746.
• This amount is increased by 10% because of its carbon dioxide emissions, i.e. £8.746 + (£875) = £9.621.
• The total of the initial excise duty and its increase is reduced by 66.54% because of its age (6 years, 7 months and 10 days) and type (cabrio), i.e. £9.621 – £6.402 (66.54%) = £3.219.
• Additional excise duty 2499 c.c. Χ £0,01 = £25.
• Total excise duty payable: £3,219 + £25 = £3.244.

4. Calculate on your own the excise duty on a vehicle
In its effort to facilitate the public, the Department of Customs and Excise has prepared a simple software which you can use to calculate on your own the excise duty chargeable on a vehicle. Its is however clarified that this software should not be used officially and that the Department of Customs and Excise bears no responsibility for wrong calculations of the excise duty due to wrong data entries or misuse of the software.
To calculate the excise duty on the vehicle you are interested in, click here.

5. Information
For more information, you may write to the following address:

The Director,
Department of Customs and Excise
Corner M. Karaoli & Gr. Afxentiou, 1096, 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: 22601753 or 22601748.