Apart from the reductions of the excise duty due to normal wear and tear of the car, for used vehicles which have been proved to cover a distance beyond the average kilometers (15000 km per year for cars fitted with petrol engines and 18000 km per year for cars fitted with diesel engines), the duty will be further reduced proportionally by a factor 0.20% per 500 km travelled beyond the average. The said reduction will not exceed 20% of the remaining balance of duty after the differentiations for normal wear and tear.
184.108.40.206. Software for the calculation of the excise duty for cars
The Department of Customs and Excise, in its effort to facilitate the public, has prepared a program which you can use on your own so as to calculate the excise duty (not the import duty) applicable to a certain car. Enter the particulars required by the software and you will have the payable amount of excise duty. Click here to download the program:
3.2.1. Import duty for motorcycles
The rate of import duty on motorcycles is differentiated according to the engine’s capacity and ranges between 6% and 8%. For motorcycles with an engine capacity up to 250cc the import duty is 8%, and for motorcycles with an engine capacity exceeding 250cc the import duty is 6%.
3.2.2. Calculation of the excise duty for motorcycles
Motorcycles fitted with an engine over 600cc are subject to excise duty (motorcycles with engines up to 600cc are zero rated).
Excise duty is charged by reference to the cubic capacity i.e. cubic centimetres (cc) of the engine. The following rates apply:
· For motorcycles with an engine capacity up to 600cc no excise duty is charged;· For motorcycles fitted with an engine over 600cc but not exceeding 1000cc excise duty is €1.71/cc;· For motorcycles with an engine over 1000cc excise duty is €2.56/cc;
Please note that excise duty is charged on the total cc of the engine. For example, a motorcycle fitted with a 1.500 cc engine will be subject to an excise duty of €3.840 (1.500 x €2,56).
220.127.116.11. Reductions of the excise duty for used motorcycles
18.104.22.168.1. Reductions of the excise duty based on the motorcycle age
For used motorcycles the total excise duty payable is reduced, based on the motorcycle age, in accordance with the reduction rates as fixed in a Notice (only in greek) issued by the Director of Customs (see table below):
Reduction of the Excise Duty on Motorcycles - Notice 59/2013
Rate of reduction %
Additional 9% for each consecutive year, peaking at a maximum of 95%
22.214.171.124.2. Reductions of the excise duty based on mileage
For used motorcycles, the remaining excise duty (i.e. excise duty after the reduction based on the motorcycle age has been applied) is further reduced based on the distance travelled (i.e mileage or kilometers travelled). The average annual mileage for motorcycles is estimated at 8.000 kilometers. Motorcycles which have been proven to have travelled a distance over their estimated average (i.e. age x average kilometers per year) receive a reduction of the remaining excise duty at a rate of 0,50% for every 500 kilometers travelled beyond their estimated average. The total of this reduction cannot exceed 50% of the remaining excise duty.
3.2.3. Software for the calculation of the excise duty for motorcycles
The Department of Customs and Excise, in its effort to facilitate the public, has prepared a program which you can use on your own so as to calculate the excise duty (not the import duty) applicable to a certain motorcycle. Enter the particulars required by the software and you will have the payable amount of excise duty. Click here to download the program.
3.3. Maximum excise duty reduction allowed
For both cars and motorcycles the total amount of the reductions (i.e. age and mileage) cannot exceed 95% of the initial excise duty (i.e. excise duty before any reductions have been applied). This means that in the event of a car or motorcycle whose age allows for a 95% reduction on the initial excise duty, no further reduction will be provided based on the distance travelled, even if the latter is higher than the vehicle’s corresponding average.
In all the abovementioned cases V.A.T., at a rate of 18%, is charged in addition to the import duty and excise duty. V.A.T. is calculated as follows: (purchase price + transportation costs + insurance + import duty + excise duty) X 18%.
5. Registration of Vehicles
After the payment of relevant duties and taxes the vehicle must be registered before it can be licensed for road tax purposes.
According to the existing Motor Vehicle and Road Traffic Legislation, a private motor vehicle can be registered in Cyprus provided its age prior to its importation is less than five years old, this counted from the date of its first registration.
For more information concerning registration and other provisions on this issue you are advised to contact with the Road Transport Department, as the competent authority, at the following address:
On payment of the duties and taxes, Customs will issue to you the Form C.72A which you must produce to the Inland Transport Department with the other relevant documents for the inspection and registration of the vehicle
6. Examples on how to calculate the excise duty
The following examples will help you to understand better how excise duty on vehicles is calculated. In all examples it is assumed that the importer has proven the Community status of the vehicles.
A used petrol saloon vehicle is 9 months old at the time of its importation to Cyprus from Japan and it has a mileage of 22.500 km. The cubic capacity of its engine is 1.789 cc and the carbon dioxide emissions are 184 gr/km. Its customs value is €6.000.
The duties and taxes payable are calculated as follows
(A) Import duty: €6.000 Χ 10% = €600
(B) Excise Duty
Initial excise duty (based on a new car with CO2 emissions of 180 gr/km): €2.250 + (4 x €400) = €3.850
Excise duty differentiations for the used car of the example:
18.50% reduction on the initial excise duty because of the vehicle age (9 months) and type (sedan): €3.850 x 18,50% = €712
4,5% reduction on the remaining amount (€3.850 – €712 = €3.138) because of kilometers travelled over the corresponding estimated average for a petrol vehicle ((22.500–(15.000/12*9) = 22.500 – 11.250 = 11.250 km 11.250/500 x 0.20% = 4.5%): €3.138 x 4,5% = €141
(C) V.A.T.: (€6.000 + €600 + €3.033) x 18% = €9.633 x 18% = €1.734Total Amount of taxes and duties payable: €600 + €3.033 + €1.734 = €5.367Example 2A used motorcycle is 5 years old at the time of its importation to Cyprus from the USA and it has covered 60.000 km (mileage). It is fitted with a 1500 cc engine and its customs value is €5.000
The duties and taxes payable are calculated as follows:
· Import duty: €5.000 Χ 6% = €300· Initial Excise Duty: 1.500cc. Χ €2,56 = €3.840· Excise duty differentiations:o The initial excise duty is reduced by 56% due to the age of the motorcycle: €3.840 x 56% = €2.150o The remaining amount (€3.840 - €2.150 = €1.690) is reduced by €338 because of kilometers travelled beyond the corresponding estimated average (60.000km – (5 x 8.000km) = 60.000km – 40.000km = 20.000 km) which correspond to a reduction rate of 20% (20.000/500*0.50=20%) €1.690 Χ 20% = €338o Excise duty payable after reductions: €3.840 - €2.150 - €338 = 1352· V.A.T.: (€5.000 + €300 + €1.352) X 18% = 6.652 Χ 18% = €1.197· Total Amount of taxes and duties payable: €300 + €1.352+ €1.197 = €2.849.
For more information, you may write to The Director:
Department of Customs and Excise at the following address:
Fax no: 22302031
For oral inquiries you may call any of the following telephone numbers of the Valuation Section at Customs Headquarters: 22601746, 22601748 or 22601650.