No-deal Brexit means higher cost of cars from UK

Transport Malta publishes new regulations if the ‘noes’ have it

Miguela Xuereb

Tista' taqra bil- Malti.

Those planning to import a new or second-hand car from the United Kingdom will have to dig deeper into their pockets if no deal is reached in negotiations between the UK and the EU. Duty on such cars is one of the changes announced by Transport Malta.

The transport regulator has just published regulations that will go into effect on if no-deal is reached.

The new regulations will be introduced on 31 December 2020, which is being called Brexit day.

What importers need to cater for

The new regulations will include the CoC certification of new vehicles. A car that may be registered in Malta will need to have the ‘e11’ approval on the certificate.

Cars imported from the UK need to be approved by another EU state before registration in Malta.  Once the car reaches the island it will be subject to pay customs duty apart from the VAT and registration tax.

Second-hand vehicles, imported from a non-EU country following 31 December 2020, also the UK, will require a Type-Approval Authority from another member state or a Single/Individual Vehicle Type-Approval Certificate issued by a Technical Service designated by a Type-Approval Authority of any EU member state.

Transport Malta explained that any vehicle deriving from the UK that has been registered there prior till 31 December but will arrive in Malta after that day, the normal process will still apply. However, there will be an increase in registration tax, VAT and other fees.

All imported vehicles from non-EU countries will have a minimum Registration Tax. This will apply to cars older than 5 years from the first day of registration.

Vehicles that reach Malta till 31 December 2020, the normal procedure applies. Owners have 30 days to register the vehicle.

Authorized dealers and car importers that have second-hand UK cars or are waiting for stocks to arrive till 31 December, may register the cars with the normal procedure. Documents of the cars already in Malta need to present to Transport Malta till 23 December 2020.