Filenews 25 June 2021 - by Evagoras Prokopiou
The new pan-European rules on VAT also touch on e-commerce in Cyprus. From 1 July 2021, new VAT rules will come into force, offering businesses across the EU a simpler and uniform management system. This also directly affects what will apply to this form of trade and to parcels by post.
On the basis of the above directive we have referred to the Cyprus Post Office and list below what will apply to packages in Cyprus.
You must pay import duties, VAT and excise duties, as appropriate. There are also exceptions such as a gift from private to private. Possibility of exemption from import duty, excise duties and VAT on consignments the value of which does not exceed €45. In the case of tobacco products/alcoholic beverages/perfumes and colognes, the exemption may be granted provided that the quantity of these articles does not exceed the permitted quantities. In order to be able to grant the exemption, gifts must be of an opportunistic nature, e.g. birthday, anniversary, must be sent from an individual in a third country to a private individual in Cyprus without any form of payment or are intended for personal use by the recipient and must not by their nature or character have any commercial interest.
Possibility of exemption from import duty and VAT on packages the value of which does not exceed €17.09. From 1/7/2021 the exemption from VAT is abolished. Import duties may also be exempted if the value of the package does not exceed €150. The exemption is not granted to tobacco and alcohol as well as perfumes or colognes. For packages in excess of €150 the import duty and VAT are paid.
In the case of second-hand goods, they shall be subject to the same rate of import duty and tax as if they were new. What's different is the value.
What is valid until 30 June 2021
Packages with a value not exceeding €17.09 are exempt from import duty and VAT, with the exception of tobacco, alcohol, perfumes and cologne. From 1/7/21 the goods in question shall be exempt only from the import duty. While packages with a value from €17.09 to €150 are exempt only from import duties with the exception of tobacco, alcohol, perfumes and cologne, VAT is paid.
In the case of non-commercial packages with a value not exceeding €45 from a private person in a third country to a private individual in Cyprus, they are exempt from import duty, VAT and excise duties.
Tariff value and import duties
The main basis for the calculation of the customs value is the transaction value, i.e. the value of the customs value. the value actually paid plus transport and insurance costs. Goods imported from outside the EU are subject to import duties, the amount of which depends mainly on the tariff classification, country of origin and value. Duties shall be calculated on the customs value including the purchase price, plus costs such as transport costs and security.
