Anyone who has visited cyprus will acknowledge that the Car is the principle means of transport for many people living on the island. Therefore a permanent move will probably force the issue of whether to buy a Car locally or include a UK-owned vehicle as part of the consignment of personal possessions shipped to cyprus. The need for a through examination of the practical and financial implications of making either choice is strongly recommended – and should reflect individual circumstances when considering a move. For example, does your current vehicle have air-conditioning? Is this a feature you would regard as essential in the sun-filled cyprus climate?

Importing a vehicle to cyprus is relatively straightforward although the process required by government bureaucracy can at first appear rather daunting. Even though cyprus has been a full member of the European Union since 2004, you cannot simply ship your Car from the UK to cyprus at will. Specific procedures apply to the movement of certain types of goods between EU member countries - including motor vehicles.

Best advice is to accept that procedures are laid down by the cyprus government – and plan accordingly. However, it pays to do the research well in advance of the planned importation of a vehicle – and ensure that necessary actions are taken and documents produced at the appropriate time and place.

The cyprus government has an informative website which gives details of what needs to be done: http://www.mof.gov.cy/mof/customs/Customs.nsf/CarsLookup?

Currently, the website provides the following guidance:

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 a Car to cyprus for private use from another member state, you may prove its Community status by producing either a T2L or ?2LF document or the number plates and the vehicle registration document issued by the previous member state.

The T2L or ?2LF 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 (4?4); 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 either 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.

Vehicles categories:    c.c. / CY£ per c.c.

A) Motor vehicles classified under T.H. 8703 21 – 8703 90 (excluding ambulances and hearses)
0 - 1650   = £ 0.30
1651 - 2250  = £ 2.00
2251 - 3000  = £ 3.50
exceeding 3000 = £ 4.50

B) Motor vehicles classified under T.H. 8704 with two rows of seats, known as “double cabin”, with a maximum Gross Vehicle Weight not exceeding 3,5 tonnes = £ 0.15 per c.c.

C) 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.
0 – 1450  = £ 0,10
1451 – 1650   = £ 0,25
1651 – 2050   = £ 0,75
2051 – 2250  = £ 0,75
2251 – 2650  = £ 0,75
exceeding 2650  = £ 1,00

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 above mentioned 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 Road Transport Department, you may apply to the main offices of the Department at the following address:

Kameris Court 1
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 better understand 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 ? £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 ? £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 ? £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. ? £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 help the public, the Department of Customs and Excise has prepared a simple software program which you can use to calculate the excise duty chargeable on a vehicle. The Department however explained 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.

5. Information

For more information about the current procedures that may apply to your personal situation and for details of the self-help software to calculate excise duty, contact:

The Director,
Department of Customs and Excise
Corner M. Karaoli and Gr. Afxentiou, Nicosia

The postal address is:
Director of Customs,
Customs Headquarters,
1440 Nicosia.
Fax no: (00357) 22 302 031
E-mail; headquarters@customs.mof.gov.cy

For telephone enquiries you may call the Valuation Section at Customs Headquarters: (00357) 22 601 753 / 22 601 748.

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