After importing the vehicle, importer is not allowed to sell the vehicle within two years of importation. Used vehicles imported in the country are subjected to import taxes depending upon the age of the vehicle. Along with import taxes, VAT is also imposed on vehicles.
Import VAT is chargeable on all goods (including motor vehicles) imported into Cook Islands, even though the transaction has been conducted offshore and the purchase price may already incorporate a local value-added or sales tax component. The current rate of VAT is 12.5 percent. VAT is calculated on the Customs value of the vehicle, plus duty (if any), plus international freight and insurance.