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Importing A Tax Free Vehicle Into Cyprus

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Information on how to import a car into Cyprus without paying Cyprus excise duty and VAT

Gaz Volga Bella                         Photo © CyprusExpat.co.uk

1. What is relief

It is the customs regime whereby goods are placed in free circulation and home use with partial or total relief from excise duties, notwithstanding their tariff classification, provided they are transferred in Cyprus under certain conditions and for specific purposes. A legal provision specifying a relief is a prerequisite for granting it.

Reliefs are granted for a number of goods for various reasons. This part refers only to reliefs on private motor vehicles which are of interest to the public when brought from European Union (EU) member states.

2. Community status of 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 vehicle for private use from another member state, you may prove its Community status by producing:

for a brand brand new or used vehicle, T2L or Τ2LF document; or

for used vehicles, 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 the 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.

3. Transfer of normal residence

If you are resident in another member state of the EU and you have decided to transfer your normal residence to Cyprus, under certain conditions you are entitled to transfer your personal property without having to pay excise duty and VAT. You will find all the information in the Guide to Customs Procedures titled “Transfer of normal residence”.

If part of your personal property is a motor vehicle, you are required to declare it to the nearest Customs Station within 24 hours from the date of its arrival. 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.

In order not to be deprived of your vehicle until you make an application for relief and receive an answer, you may be allowed to drive the vehicle temporarily under Form C.104O. A copy of Form C.104O will be given to you by Customs and you must keep it in the vehicle all the time and produce it to a Customs or Police Officer if so requested.

You may submit your application for relief to any Customs Office or to Customs Headquarters. If you get a positive answer, the procedure is not terminated there. You will have to complete form SAD. If you cannot complete it on your own, you may use the services of a clearing agent. You may submit your SAD at any Regional Customs Office, accompanied by Form C.104O, which will be kept by Customs. You will not pay excise duty or VAT.

Customs will issue Form C72A and a copy will be given to you. The vehicle must be then produced, together with Form C72A and other documents relating to your vehicle, to the Inland Transport Department for inspection and registration purposes.

If you get a negative answer from Customs because you do not meet the criteria for being granted a relief for the vehicle, you have the following options:

to pay the excise duty and VAT (if the latter is payable);

to place it in a customs warehouse;

to send it to another member state of the EU; or

to export it to a third country.

4. Cypriots coming to Cyprus to resume or take up permanent residence - Abolished

Relief on motor vehicle has been abolished according to Decree no. 529/2011, which was published in the OJ of the Republic of Cyprus no. 4538 on 23/12/2011.

Persons concerned may claim relief for their personal motor vehicle within the “Transfer of normal residence scheme” (see paragraph 3).

5. Aliens residing permanently in Cyprus -Abolished

Relief on motor vehicle has been abolished according to Decree no. 529/2011, which was published in the OJ of the Republic of Cyprus no. 4538 on 23/12/2011.

Persons concerned may claim relief for their personal motor vehicle within the “Transfer of normal residence scheme” (see paragraph 3).

6. Families with more than three children

6.1. Legal provisions
Sub-section 14 of item P of the Schedule to the Customs and Excise Duties (Reliefs on Import of Goods) Regulations of 2004, P.I.380/2004.

6.2. Entitled persons
Under the conditions laid down below, you are entitled to relief from excise duty if you are a citizen of the Republic with four or more dependant children and you have not received any subsidy from the State for the purchase of vehicle.

A child is considered dependent if that child is:

below the age of 18;

over 18 years old and is a student of secondary or tertiary education in Cyprus or abroad;

over 18 years old and is in the National Guard doing his service;

of any age and unmarried and invalid and who has not exercised his/her right to apply for a duty-free vehicle or has not been given financial assistance by the State to purchase a vehicle.

6.3. What you are entitled to

You are entitled to apply for relief from excise duty on new or used passenger motor vehicles, which can transport from eleven to twelve persons including the driver. Instead of claiming relief however, you may apply to the Ministry of Finance for a special subsidy for the purchase of motor vehicle.

6.4. Prerequisites for granting of relief

Relief is granted for one vehicle only, to be driven solely by the entitled person. The replacement of one excise free vehicle with another excise free vehicle is not allowed.

6.5. Procedure for granting of relief

Relief is granted on a claim for relief made by you personally (there is no specific form). The claim must be submitted to the Relief Section of Customs Headquarters in Nicosia and be accompanied by the following evidence:

marriage certificate;

your children’s birth certificates;

documentary evidence for dependant children over 18 years old;

“Association of Families of over three children” membership card;

Cypriot driving licence.

If you get a positive answer, the procedure is not terminated there. You will have to complete form SAD. If you cannot complete it on your own, you may use the services of a clearing agent. You may produce your SAD at any Regional Customs Office. Customs will issue Form C72A and a copy will be give to you. The vehicle must be then produced, together with Form C72A and other documents relating to your vehicle, to the Inland Transport Department for inspection and registration purposes.

6.6. Conditions to be observed after importation

You shall not sell, lend, pledge, rent, export, transfer or dispose off it otherwise without the prior approval of the Director of Customs.

Any infringement of the aforesaid conditions constitutes an unlawful act and carries severe penalties

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

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 22302031

For oral inquiries you may call any of the following telephone numbers of the Relief Section at Customs Headquarters:

(00357) 22601657 and (00357) 22601658. Source Customs & Excise

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