Contributions and social contributions

CVAE: what developments for 2025?

Publié le 07 janvier 2025 - Directorate for Legal and Administrative Information (Prime Minister)

For the year 2025, the company value added tax rate (VAPR) is changing. The same applies to the rate of the additional tax to the CVAE.

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Image 1Crédits: HBS stock.adobe.com

Initially set for 2027, the draft budget for 2025 postpones the abolition of the CVAE until 2030.

However, the 2025 budget has not not yet enacted. Thus, the rates applicable to the 1er january 2025 are those listed in the 2024 budget.

The aim of abolishing the CVAE is to strengthen the competitiveness of companies by eliminating taxation and administrative burdens.

Phasing out until 2027

The company Value Added Tax (VAAC) will be abolished in 2027. This contribution is payable by companies or persons who are self-employed and who generate an annual turnover (CA) excluding tax of more than €500 000. It should be added that companies with a CA excluding tax of more than € 152 500 only have to make a declaration of value added and employees.

By 2024, the VAE had been reduced. This gradual reduction of the overall tax rates of the CVAE continues until its abolition in 2027:

Tableau - CVAE tax rate based on turnover in 2025 and 2026

Turnover excluding tax

Effective Tax Rate 2025

Effective Tax Rate 2026

Less than €500,000

0%

0%

Between €500,000 and €3 million

0.063% x (CA - €500,000) / €2.5 million

0.031% x (CA - €500,000) / €2.5 million

Between €3 million and €10 million

0.063% + 0.113% x (CA - €3 million) / €7 million

0,031 % + 0,056 % x (CA - €3 million) / €7 million

Between €10 million and €50 million

0,175 % + 0,013 % x (CA - €10 million) / 40 million %

0,087 % + 0,006 % x (CA - €10 million) / 40 million %

More than €50 million

0.19%

0.09%

In order to obtain the amount of the EAAC, it is necessary to multiply this by the taxable value added of the company.

Increase in the rate of the additional fee for the CVAE

In addition, in order to preserve the resources of the regional Chambers of Commerce and Industry (CCIs) that benefit from the payment of the additional tax to the CVAE, the rate of the additional tax is increased to 13.84% the amount of the CVAE for the year 2025 (compared with 9,23 % in 2024).

Consequences for the territorial economic contribution and the land contribution of the companies

Since the territorial economic contribution (CET) is made up of the CVAE and the companies' land contribution (CFE), its capping rate has been modified for 2024. It is now set at 1.438% added value. This rate applies to the sum of the 2025 EFA and EFA due.