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Taxation
Postponement of the abolition of the CVAE and creation of a supplementary contribution
Publié le 18 février 2025 - Directorate for Legal and Administrative Information (Prime Minister)
In order to support public finances, the 2025 budget postpones the abolition of the company value added tax (CVAE) until 2030. This change is accompanied by other developments.
CVAE termination postponement and new rates
Originally scheduled for 2027, the end of the CVAE is now scheduled for 2030. This change does not affect the 2025 CVAE rate.
However, effective tax rates evolve until it is abolished:
Turnover excluding tax | Effective Tax Rate 2025 | Effective Tax Rate 2026 and 2027 | Effective Tax Rate 2028 | Effective Tax Rate 2029 |
|---|---|---|---|---|
Less than €500,000 | 0% | 0% | 0% | 0% |
Between €500,000 and €3 million | 0.063% x (CA - €500,000) / €2.5 million | 0.094% x (CA - €500,000) / €2.5 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 | 0,094 % + 0,169 % x (CA - €3 million) / €7 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 | 0,263 % + 0,019 % x (CA - €10 million) / €40 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% | 0.28% | 0.19% | 0.09% |
Adjustment of the ETC ceiling
The deferral of the abolition of the CVAE has the direct consequence of modifying the ceiling of the territorial economic contribution (CET) and the amount of the additional tax to the CVAE:
Year | 2025 | 2026-27 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
ETC ceiling | 1.438% | 1.531% | 1.438% | 1.344% | 1.25% (the ceiling will only apply to the CFE) |
Year | 2025 | 2026-27 | 2028 | 2029 |
|---|---|---|---|---|
Additional fee to the CVAE | 13.84% | 9.23% | 1.438% | 1.344% |
Payment of a supplementary contribution to the CVAE
Only for the year 2025, a supplementary contribution to the CVAE is applied. It concerns companies liable to pay the CVAE.
It rises to 47,4 % of the CVAE and must be paid by a single deposit equal to 100% of its amount on September 15, 2025. The final settlement of this contribution will take place no later than May 5, 2026.
Please note
This contribution shall not be taken into account in the calculation of the TEC value-added ceiling.