On 31 May 2012, The European Commission published one press release concerning an infringement procedure in the field of taxation against Cyprus regarding registration tax rules on second-hand vehicles (IP/12/527)

The European Commission has formally requested Cyprus to change the way in which it levies registration tax on second-hand motor vehicles transferred from other Member States.

Under Cypriot law, the full amount of registration tax on the transfer and registration of a second-hand motor vehicle from another Member State is applied, regardless of the age or the mileage of the vehicle. It is levied on the basis of the category of the vehicle, engine capacity and carbon dioxide emissions. Cypriot rules do not, however, take into account the depreciation of the value of second-hand vehicles when they are registered in Cyprus. The Court of Justice ruled that the tax on a second-hand car from another Member State cannot be higher than the „residual tax” incorporated in the value of a similar vehicle registered nationally (Article 110 of the Treaty on the Functioning of the European Union).

See also Infringement cases – Press releases  website.

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