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import duty on vehicles

Posted by timber-685074 - Created: 8 years ago
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10 replies (Showing replies: 1 to 10)

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Posted by Webgine Limted - 8 years ago

No i heared that one aswell and was told to pay 5000 duty at the import place when i went to sell last week, but protested and paid 3700 instead. Still a lot for a 9000 EUR car though.

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Posted by fernandez77 - 8 years ago

Has anyone heard anything further on the registration fees being scrapped? I got my C72 the other week but havent registered the car yet.

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Posted by kciseddoh - 8 years ago

See below.

The Legislation of Cyprus for the Taxation of "Imported" Second-Hand Cars is Incompatible with Article 90 of the EC Treaty

Community law prohibits generally applicable taxes (on "imported" and national vehicles, whether new or second-hand), if these general taxes discriminate against "imported" vehicles.

The prohibition on discriminatory domestic taxes is expressly stated in Article 90 of the EC Treaty. Inter alia , this provides that if a Member State manufactures new cars, it may not impose, directly or indirectly, on cars of other Member States any internal taxation of any kind in excess of that imposed directly or indirectly on similar domestic products (first paragraph of Article 90).

Levying non-graduated taxes on "imported" second-hand cars raises a particular difficulty in respect of Article 90 of the EC Treaty, especially where domestic second-hand cars are not taxed in that capacity because they were taxed earlier when new (i.e. when registered or when first put on the road).

The Court of Justice of the European Communities has agreed that this method of taxation is permissible but that (to ensure compliance with the first paragraph of Article 90 of the EC Treaty) it may not exceed a maximum amount equal to the residual tax incorporated in the value of similar domestic second-hand cars. This maximum applies even if the tax criterion applied by the Member State is not the value of the second-hand car but, for instance, its cylinder capacity. At the same time the Court of Justice of the European Communities specified that the residual tax incorporated in the value of a domestic second-hand car which had already been taxed at an earlier stage (usually when new) and which was similar to the imported second-hand car decreased in proportion to the actual depreciation of the car.

Article 90 of the EC Treaty imposes on Member States a clear and unconditional obligation regarding the outcome; they are deemed to be in breach of the obligation if the respective taxes on the imported product and a similar domestic product are calculated by different methods providing different results, even if only in a few cases, and the outcome is higher taxes on the imported product. Neither may the importing Member State plead practical difficulties as grounds for any discrimination whatsoever against imported products.

The compatibility of the legislation of Cyprus for the taxation of "imported" second-hand cars with Article 90 of the EC Treaty was considered for the first time by the Supreme Court of Cyprus in the Case 1161/2004 which was handled by the Law Firm Andreas Sofocleous & Co . The Supreme Court of Cyprus accepted the submissions of the applicant and declared that the legislation of Cyprus is incompatible with Article 90 of the EC Treaty.

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Posted by kciseddoh - 8 years ago

Hi,

I know there is alot of confusion surrounding this issue.

Yes, it is correct they are phasing out the import duty and registration. The EU has fine Cyprus on a number of occasions, hence the change.My partner and I moved in August and we brought 2 cars both have engines size above 2.0L.

After a trip to the Larnaca and Nicosia office we have approval for both cars. A very nice customs lady kindly mention to me in passing they are expecting a new directive in April scarping the registration fees, which was also confirmed by the bloke at the Govt MOT garage when we went for inspection.

He advise us to wait since we were going to save alot of money with regards to the regtration fee. So I'm still driving on the UK plate.

The process is relatively simple, provided you for the guidelines set out my cutoms. Go to the department of transport website for guidance.

1, You need to have own the car atleast 6 months before shipping to Cyprus

2, Confirmation of address in the UK . i.e bank statements, water or electric bills and council tax .

3, Confimation of disposal of propery in the UK.

4,Tenancy agreement or confimation of your property in Cyprus.

5, Landing bill from your shippers confirming transfer of household to Cyprus.

6, Confimation of employment in UK. P60,P45, payslips e.t.c

I am glad we actauly brought our cars !! noway was I going to pay for the exobitant prices over here.

Hope this helps!

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Posted by TT BIKE - 8 years ago

hi timber my girlfriend moved here last april brought here car over a ford puma we were lucky bob from britmovers got it from harrow in london to cyprus he sorted all paper work for us so we just picked the car up at the port 2 weeks later we had a vistor permit for 3 months but we went staight to getting it duty free well start the long process! give you an idea you have to have the car you are bringing in to cyprus in your name for a minium of 6 months and be paying tax in england for minium 1 year. we had to have original bill of sale from the garage bank statements minium 6 months tax on the car as 6 months mot mobile phone bills also get this my girlfriend does not have here own house or children but if she did they want proof of the house proof of gas bills electric bills school records etc etc but we were lucky she is not a mother and not own here own home so they asked for proof of sale and just that she paid tax income tax and bank records here p60 after showing here all these and taking 3 trips to nicosia we got are phone call saying all ok but it took over 6 months and this is a very short time other people have real trouble. i moved here and just bought cars here they are way more expensive but i really dont want to be running up and down to nicosia and sitting down the port trying to argue your case my advice sell your car buy one here you pay more out at first but dont have the hassel im not joking otherwise you will be putting up comments like everyone else on this forum saying duty free is hassel and duty on daft size engines and new cars is really expensive

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Posted by Phoebe-685310 - 8 years ago

Hi Timber,

Cyprus, Greece, Portugal and Holland are the only EU countries that inforce this still..... why..... because they make so much in revenue the fines don't come near to how much they make so they make their own rules up!!!!

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Posted by timber-685074 - 8 years ago

Thanks for everones responce!!:)

I really thought that as we are all in "europe" we had the right to travel freely between countries and take our belongings with us?

Is cyprus the exception or do they not follow the rest of europe in believing this?

I have a 59 plate 2000cc vw tiguan which would be perfect for the what cyprus call roads does anyone know how much it would be for duty/reg/road tax cost?:)

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Posted by suentel - 8 years ago

Hi

Double cab pick ups are not exempt from import duty. We gathered all our info and took it to Nicosia last year and were told that we were not exempt because we have passenger seats. We paid 697 euros duty on a Nissan Navara 2488cc. It was cheaper because you get a 55% discount for pick ups.

You also get that same discount to register the vehicle here. I think we paid about 700 euros.

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Posted by Wingnut-669538 - 8 years ago

the tax is still in force. you can calculate it here:

http://www.mof.gov.cy/mof/customs/Customs.nsf/All/952D607F7A22EF5CC225748A0032A69C/$file/car_tax_mileage_calculator_EN.xls?OpenElement

bringing in anything up to 1.6 engine is cheap. over 1.6 it gets expensive. big engines cost a fortune in duty and registration.

double cabs and vans are tax free, but you still have to pay registration

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Posted by Phoebe-685310 - 8 years ago

Hi Timber,

What type of vehicle do you have? that way could advise.

My car was seized on Monday after a long process but in the end they won and my poor Volvo has no been impounded and will be sold on in an auction. I couldn't afford the duty or registration which came to around 7,000.00euros plus 477.00 road tax per year and this was on a 1997 car!!!

It's really not worth it unless you have a van or pick up which is classed as a commercial vehicle as my husband brought in a ford transit and it was only around 500euros.

DOUBLE check this as i would hate this to happen to someone else as you are robbed blind to put it mildly.