Goods imported into Cyprus from overseas are subject to customs duty. The rates (EU and general) vary with the classification of the goods imported, from 0% on woollen products originating from Commonwealth countries, to 60% on some prepared goods for domestic pet animals from countries outside the EU. Goods which carry high import duties are mainly confectionery, whisky, cosmetics, clothing, fabric, television sets, videos, motor vehicles and furniture. Almost 50% of imported goods are duty-free, the main categories of such goods being food, raw materials for manufacturing, agriculture and other industrial activities as well as machinery and equipment used in the manufacturing and catering industry. Excise taxes are imposed on a limited number of categories of goods, mainly cigarettes, petrol and motor vehicles, alcohol and soft drinks. A temporary refugee charge is levied on most imported goods and varies from zero to 6% on the value, with preferential treatment on imports from EU countries for which the rate varies from zero to 3.9%.
The contents of this article are intended to provide a general guide to the subject matter. Specialist advice should be obtained before any action is taken.
ARTICLE
17 March 1998
Other Taxes - Customs and Excise Duties
KPMG in Cyprus
Contributor
KPMG has been operating in Cyprus since 1948 and currently employs more than 800 professionals working from 6 offices across the island. It is a member of KPMG International Limited, a global organisation of independent professional services firms providing Audit, Tax and Advisory services. KPMG operates in 143 countries and territories and has approximately 273,000 people working in member firms around the world. Clients look to KPMG for a consistent standard of service based on high-order professional capabilities, industry insight, local knowledge and expertise.