CyprusLiving

[DILYON]

I keep hearing rumours about abolition of import duty on car imports but a massive rise in excise duty.
Does anyone have the facts ?

Dilyon
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THE EMBA MEMBA

[lansing]

I have not read anything regarding this but am very interested as we are moving to Cyprus in June and will be bringing our 09 uk plate car with us..

[McIngy1]

Definite possibilty- import duty from within the EU is not allowed, a local excise duty would however be permissable, although in theory might not be applicable to a car you already owned and had paid the local taxes on when you purchased it
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Give a man a fish and he will eat for a day. Teach a man to fish and he will sit in a boat drinking beer all day.

[gilbo]

I have been informed, by a very reliable source, that a case has been heard in the European Court that import duty will cease and refunds will be made next year, not holding my breath.
I would imagine various rules will apply regarding time of ownership as the amount, potentially to be refunded, will be huge.

Regards Gilbo

[McIngy1]

From a recent Cyprus weekly

This week's issue of the Cyprus Weekly reported the following story:


'A ruling by the Attorney General Petros Klerides on taxing second-hand cars imported from EU countries could spell trouble for the Finance Ministry but prove a saviour for car buyers.


Apparently, the current system of taxation on car imports is breaking EU and Cyprus law and if the situation is not resolved, the government is liable to return huge sums in registration fees if owners decide to take legal action.


There have already been two counts where individuals have claimed their dues in court and won, one case involved the importation of a 4x4 vehicle from the UK.


A cash-stricken government is worried its revenue could be affected as over the last three years it has collected €100m in registration duties.


The Finance Ministry has already calculated that required changes to the tax system on second-hand imported cars could see a drop of €20m in registration fees in 2010.


Proposals under review include scrapping the registration tax for a fixed fee for all vehicles regardless of model type and engine size.


Or for tax for each imported used car to be set based on evaluation of age, value and condition of the vehicle.


Another option is to overhaul the system altogether that incorporates registration fees and road tax but ensuring the same level of revenue.


A car tax revamp seems the most likely outcome as the other alternatives could encourage the import of gas-guzzling cars which is an environmental no-no.'


Source: Cyprus Weekly issue number 1550.
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Give a man a fish and he will eat for a day. Teach a man to fish and he will sit in a boat drinking beer all day.

[Jim]

''A cash-stricken government is worried its revenue could be affected as over the last three years it has collected €100m in registration duties.''


If this is the case why does the government call in all it's title deeds money? they would cure all their financial problems at one stroke.
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Jim...

[clive of payia]

Yes Jim, as you know we've been saying that for years but as my Greek Cypriot friend told me only last night if they tamper with the TD situation it will bring the local banks down unless the govt is prepared to write off all the developers loans on the land as Toxic Debt and that will bring the government down. So nothing will be done as usual and so many people who want to sell are caught in the trap. If you're not selling or have your TD's not a problem.

Could be our Communist President will ask his Russian friends for a loan to clear the situation off once and for all? But who would want the Russians owning most of the prime real estate on the island.

The Interior Minister stated recently that if you have your Sale Contract registered with the Land Registry Office, and have a receipt to prove it so that you can claim 'title' you are safe when the developer goes bust - just needs somebody to test that with the banks and see what they say - banks usually want their money regardless.

We shall see.

[pav]

[pav]

[McIngy1]

I don't see how they can impose excise on a used car under EU law- they could certainly do so on a new one bought and sold in Cyprus or a new one imported which might be subject to any local excise duty and VAT prior to registration, but anything imported new or old if it has been bought in the EU and taxes paid locally should be free to move anywhere else in the EU unimpeded. Cyprus's transition period on such matters has ended I believe

Import tax on intra EU goods is illegal- calling it excise won't wash- not even in Cypriot court it would appear
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Give a man a fish and he will eat for a day. Teach a man to fish and he will sit in a boat drinking beer all day.

[lewisestwo]

McGingy
Not often I disagree with you, but excise tax/duty is a local tax in each country and has nowt to do with the EU.
Every country in the EU can charge excise on any product that they wish to impose it on. In most countries it is hydrocarbon oil, petrol and cigarettes. In certain countries Excise is charged on engine size of cars and motor bikes. Greece and Cyprus spring to mind.
All countries also charge registration fees, which apply when the reg is changed to the licence of the country of Import. In Cyprus I believe you are allowed six months before you have to register your gas guzzler. I however have seen gas guzzlers with UK registrations on the road for the past 6 years, so not hurry there then.

[McIngy1]

EU does have a say in excise duty- they set minimum tax levels on various products- petrol for example must have a minimum VAT level.

Countries can charge their own excise duties on new products at point of sale within their own country, but they cannot impose an import or excise duty on goods where all applicable taxes/ duty has been paid in full in the country where the product has been bought within the EU.

Pre EU Cyprus could charge import/ excise duty on second hand imported cars from anywhere- they still can if these cars come from outside the EU, but they cannot tax any EU citizen's pre owned car originating anywhere in the EU.

If they want to tax gas guzzlers, as they did on imported cars, it can only really be done by increased road tax on that type of vehicle
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Give a man a fish and he will eat for a day. Teach a man to fish and he will sit in a boat drinking beer all day.

[lewisestwo]

Oh all right. I'll start agreeing with you again.

[Dragsta]

Good News

I had to sell my F150 back in the UK
as the reg fees would have been more than the Truck if i shipped it over
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moving to Chlorakas ASAP (MOVED!!! )

[McIngy1]

I imagine these cases have come to light because Cyprus's 5 year transition period on joining the EU finished earlier this year

I think it is still possible for the authorities to throw the odd spanner in the works- I believe that they could charge a registration fee to get your car issued with local plates and throw in stringent vehicle inspection roadworthiness requirements on older cars, but given the state of some of the jallopies in Cyprus that might be difficult.

It is a hugely significant development for Cyprus- luxury cars used to be extremely expensive- now you can import from anywhere in the EU as long as all the taxes are paid in the EU country of purchase they will have to abolish these car duties to enable local car dealers to begin to compete. I imagine with the Euro being so strong against the £ just now a lot of Cypriots will be looking towards the UK to buy their cars as well
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Give a man a fish and he will eat for a day. Teach a man to fish and he will sit in a boat drinking beer all day.