Republic of Cyprus.

Includes mainly the following natural or legal persons:

• in relation to the holding of goods under suspensive arrangement, the person who releases or on whose behalf the excise goods are released from the suspensive arrangement;
• in relation to the holding of excise goods outside suspensive arrangement, any person holding the excise goods;
• in relation to the manufacture of excise goods, any person involved in the manufacture;
• in relation to importation, the person who declares the goods upon importation or any person involved in the irregular importation.

Motor vehicles.

Carbon Dioxide (CO2) emissions. Engine Cubic capacity (cc).

Deductions

For used cars the total excise duty payable is reduced based on the age of the car, its fuel type and the kilometers it has travelled, its general condition and its make and body type (see below).

Exemptions

Exemptions are provided for all excisable goods in respect of diplomatic and consular relations, International organizations, on the personal property of persons who transfer their normal residence into the Republic of Cyprus, etc.

MOTOR VEHICLES

For the purposes of the application of the Excise Duty rates, corresponding to vehicles listed under category A in the above table, a verification of the mass of carbon dioxide (CO₂) emissions (combined cycle) is required. For new motor vehicles, the mass of carbon dioxide (CO₂) emissions is verified by the vehicle’s Certificate of Conformity (COC) whereas for used motor vehicles a certificate issued by the Registrar of Motor Vehicles (document TOM119A) is required. 

In the event that the aforementioned verification is not presented to the Department of Customs and Excise, the applicable Excise Duty will be calculated on the basis of a rate that corresponds to CO₂ emissions equal to 450 gr/km.

Differentiations of the Excise Duty

Differentiations of the excise duty for cars

1. For used cars the total excise duty payable is reduced in accordance with the reduction rates as fixed in a Notice issued by the Director of Customs and Excise. To determine the reduction rates, the Director takes into consideration objective criteria, such as the age of the car, the kilometers it has travelled, its general condition, fuel type, its make and body type.

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 (15,000 km per year for cars fitted with petrol engines and 18,000 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.

2. An additional excise duty of €0.02 per cc of engine capacity is also imposed.

3. The following vehicles are charged with excise duties at the rate of 15% ad valorem:

(a) motor vehicles of the “go-kart” type exclusively used in closed and/or enclosed areas for amusement purposes;
(b) amphibious motor vehicles, of a gross weight not exceeding 1,000kg, having three rows of wheels, six-wheel drive, used for amusement or professional purposes and which can transport two to four persons;
(c) motor vehicles of the “hovercraft” type designed to travel both on water and on land;
(d) motorized caravans of CN Code 8703;
(e) old vehicles as specified in the Motor Vehicles and Road Traffic Law of 1972 as amended; and
(f) vehicles with four wheels, having the appearance of a motor cycle and which are not registered for the purposes to be driven on public roads.

Provided that Motor vehicles powered by electric engines used for the transport of persons are zero rated.

Excise duty is due at the time of release of goods for consumption.

The Department of Customs and Excise.