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Is there additional tax if u import a car from UK?

Posted by Anikitos - Created: 9 years ago
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2 replies (Showing replies: 1 to 2)

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Posted by kciseddoh - 8 years ago

Hi,

Read 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 dude-692034 - 9 years ago

I totally agree with you. We brought our car here which met all the requirements ie. under 1600 engine and owned for 12 months prior to coming. However have just been forced to pay duty on it and fined for not doing it sooner!! I think they make the rules up as they go along! Didn't think this was relevant within the EU!