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PERMANENT RESIDENCE SCHEME Importation of Motor Vehicles Registration Tax has a significant impact on the final price of a vehicle. The EU has no laws on car Registration Tax and therefore the current national law applies (Registration Tax Act Cap. 368)and LN476 of 2004. A vehicle which is newly registered in Malta must always pay Registration Tax even if it has been registered in another Member state. The following are the procedures of how a vehicle is registered. New cars originating from EU Countries A vehicle is classified as new if it is less than 6 months old or has run less then 6000 Kms. New cars coming from EU countries are subject to Registration Tax and VAT as per schedule below. Registration Tax for New Private Vehicles
There is also an 18% of VAT upon the cost, insurance & height of the Vehicle(CIF).Registration Tax and VAT is calculated on the Invoice Value (CIF price) of the vehicle depending on the cubic capacity of the vehicle and in the case of goods carrying vehicles, registration tax is calculated upon the gross vehicle weight. Since vehicles are not considered to be personal effects Registration Taxes should still be paid when one transfers his residence to Malta. Rates and conditions apply as above. Used cars originating
from EU Countries Registration Tax for Used Private Vehicles
Registration tax is calculated on the residual value (valuation price) made by Malta Transport Authority officials. Used vehicles are not subject to VAT on the valuation price but VAT has to be paid on Registration Tax. This is because VAT would have been already paid in the Member State from where the vehicle was purchased. There is a minimum charge of registration tax depending on the cubic capacity of the vehicle which has to be paid, but if on valuation the Registration Tax duly to be paid is greater than the minimum, than the latter will follow on goods carrying vehicles, the minimum registration tax paid depends on the gross vehicle weight (G.V.W).
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