Taxes on the economic use of vehicles (ex-TVS)
Verified 10 January 2024 - Directorate for Legal and Administrative Information (Prime Minister)
The tax on business vehicles is replaced by 2 taxes: the annual CO emissions tax2 and the annual air pollutant emission tax (which replaces the 2023 annual seniority tax). Any company must pay these taxes on passenger vehicles used for economic purposes. They concern the transportation of persons. The calculation and payment are done annually.
The following 2 taxes must be paid for each vehicle:
- Annual tax on CO₂ emissions : it is determined on the basis of the CO₂ emission rate, the date of entry into service and, in certain cases, on the basis of the fiscal power.
- Annual vehicle air pollutant emission tax : it is determined according to the type of fuel and the date of entry into service. It replaces the annual seniority tax that was introduced in 2023.
All business and all individual business (EI) which uses or owns passenger transport vehicles in the course of its economic activity is affected by those taxes.
Depending on the type of vehicle
The 2 taxes relate to the following vehicles:
- Registered in the category M1, i.e. passenger cars (with the mention VP carte grise registered on the certificate of registration). They are designed to carry people and have no more than 8 seats.
- Registered in the category N1 , i.e. vehicles of less than 3.5 tons which can carry both small goods and persons.
2 types of vehicles are concerned:- Pickup. The vehicle shall have at least 2 rows of seating positions. Carte grise The following is marked van or code BB in box J2.
- Truck pick-up truck with a minimum of 5 seats. Carte grise The bodywork description code according to the European classification is BE, entered in box J2 of the certificate of registration.
Please note
Trucks pick-up truck intended exclusively for ski resorts or to ski lifts are not affected by these taxes.
Depending on the use of the vehicle
The 2 taxes concern vehicles whose technical characteristics are intended solely or principally for the passenger transport.
Example :
It is typically the official car of a company, even if it is occasionally used for private purposes.
Vehicles are affected if they meet theany of the following :
- They are owned or rented for a long period (at least 30 consecutive days) by the company and are registered in France.
- The company shall bear all or part of the costs incurred by a natural person in acquiring or using the vehicle. They drive on the public highway of national territory.
- They drive on the public highway of national territory for the purpose of carrying out an economic activity (except vehicles used exclusively for commercial demonstration by dealers, except those lent for technical inspection and those having a provisional registration with a certificate "W garage").
Activities and uses of the exempt vehicle
Vehicles intended for exclusively to next activities are exempt from 2 taxes :
- Sale, e.g. cars of car dealers, dealers
- Rental, as part of a car rental company
- Transportation of persons in wheelchairs for wheelchair accessible vehicles
- Transport available to the public: taxis and VTC, for example
- Teaching of motor driving (driving school) and sport driving
- Sports competitions
- Used by technical inspection centers
- Used by non-profit organizations
- Designed for exclusively commercial use (e.g. food truck) or industrial use
Thresholds for aid received giving entitlement to exemption from the 2 taxes
Any company may benefit from an exemption if does not exceed the de minimis threshold corresponding to its sector of activity.
This European framework sets a threshold for small amounts of aid not to be exceeded for the same company over three rolling fiscal years (current and the previous two fiscal years).
The period must therefore include the current fiscal year, as well as the 2 previous fiscal years. Compliance with this ceiling shall be assessed at the time of the date of granting each new de minimis aid. For each new de minimis aid granted, account must be taken of the total amount of de minimis aid granted during the previous three years.
Sector | Threshold to be respected over 3 rolling fiscal years |
|---|---|
All sectors (except exceptions) | 300,000 € |
Carriage of goods by road for hire or reward | 300,000 € |
Agriculture | €20,000 |
Fisheries and aquaculture | €30,000 |
Please note
An exemption also applies to vehicles designed for exclusively for a agricultural use or forester, to condition that the company complies with the minimis.
Basic principle for calculating the annual CO₂ tax
Taxation period extends from 1er January to December 31 of each year.
The tax is paid onnext year after use of the vehicle.
The tax is calculated on the basis of the days vehicle use in the year, using the following mathematical operation:
number of days in use of the vehicle in France for economic purposes / number of days of thecalendar year x annual tax rate
3 different calculation methods according to 3 vehicle categories
The calculation of the annual CO2 tax varies according to the category to which the vehicle belongs.
These 3 categories of vehicles are:
- If the vehicle has been registered for the first time in France from march 2020, it falls under the new registration system: the WLTP device. The calculation is based on the exact quantity d'CO₂ emissions by kilometer.
- If the vehicle is possessed or used by a company since january 2006 and of which the first putting into circulation has taken place after 1er June 2004 (including day) then it is the responsibility of the NEDC device. The calculation is based on CO₂ emissions according to a slice scale.
- For other vehicles, the calculation is based on the fiscal or administrative power (fiscal horses or administrative horses).
FYI
The price lists will increase progressively every year until 2027.
Calculation of the annual CO₂ tax rate according to the WLTP device
This method of calculation applies to vehicles registered for 1re times in France from march 2020.
The rate is calculated on the basis of CO₂ emissions in fractions, expressed in grams per kilometer (g/km) multiplied by a so-called “marginal” tariff according to a slice scale.
Fraction of CO₂ emissions (g/km) | Marginal rate (in €) |
|---|---|
Up to 14 | 0 |
15 to 55 | 1 |
56 to 63 | 2 |
64 to 95 | 3 |
96 to 115 | 4 |
116 to 135 | 10 |
136 to 155 | 50 |
156 to 175 | 60 |
From 176 | 65 |
Calculation of the annual CO2 tax rate according to the NEDC scheme
This method of calculation applies to vehicles put into service for 1re times from 1er June 2004 (including) and owned or used by a company after 1er january 2006 (including).
The rate is calculated on the basis of CO₂ emissions (in grams per kilometer) multiplied by a so-called “marginal” tariff and according to a slice scale.
Fraction of CO₂ emissions (g/km) | Marginal rate (in €) |
|---|---|
Up to 12 | 0 |
13 to 45 | 1 |
46 to 52 | 2 |
53 to 79 | 3 |
80 to 95 | 4 |
96 to 112 | 10 |
113 to 128 | 50 |
129 to 145 | 60 |
From 146 | 65 |
Calculation of the annual CO₂ tax rate in relation to administrative power (or fiscal power)
This method of calculation applies to other vehicles, those not included in the WLTP or NEDC device.
The calculation is based on the fiscal power or administrative power (fiscal horses or administrative horses) in fractions of administrative power according to a scale in tranches.
Fraction of administrative power in horses (CV) | Marginal rate (in €) |
|---|---|
Up to 3 | 1,500 |
4 to 6 | 2,250 |
7 to 10 | 3,750 |
11 to 15 | 4,750 |
From 16 | 6,000 |
Example :
For a 7 hp vehicle registered for 1re before 2004, the CO₂ tax rate in 2024 shall be calculated as follows:
1 500 + 2 250 + 3 750 = 7 500 €
2024 Air Pollutant Emissions Tax Tariffs
At 1er january 2024, the air pollutant emission tax replaced the annual vehicle age tax, which was introduced in 2023.
The annual amount of this new tax varies according to the pollutant emission category to which the vehicle belongs:
Pollutant emission category | Vehicle Characteristics | Annual tax rate |
|---|---|---|
E | Vehicle powered exclusively by electricity, hydrogen or a combination of both | €0 |
1 | Vehicle powered by a positive-ignition internal combustion engine and complying with the Euro 5 or Euro 6 emission limit values | €100 |
Most polluting vehicles | Other vehicles | €500 |
FYI
Vehicles accessible by wheelchair are exempt of this tax.
2024 Air Pollutant Emission Tax for Hybrid Vehicles
The seniority tax replaced in 2024 by the air pollutant emission tax, is due for hybrid vehicles.
CO₂ tax exemption for hybrid vehicles until end 2024
The tax on CO emissions2 is not required for hybrid vehicles that fill out criteria related to the energy source and the level of CO2.
The energy source vehicles shall combine one of the following two criteria:
- Electricity or hydrogen on the one hand, and natural gas, liquefied gas, gasoline or superethanol E85 on the other
- Natural gas or liquefied petroleum gas on the one hand and gasoline or superethanol E85 on the other
The CO emissions2 of the vehicle shall also meet one of the following criteria:
- For vehicles registered from 1er March 2020 (WLTP registration procedure), CO2 emissions shall not exceed 60g/km
- For vehicles registered between 1er June 2004 and February 2020 and not allocated for economic purposes before 1er January 2006 (NEDC registration procedure), emissions shall not exceed 50g/km
- Carte grise For other vehicles (registered before 2004 or used for economic purposes before 2006), the administrative (or fiscal) power entered in box P2 of the
- CO emissions2 or the administrative power must not exceed twice the above thresholds and the age of the vehicle (determined from its date of 1)re registration) shall not exceed 3 years
FYI
The tax on CO emissions2 will also be due for hybrid vehicles from 2025.
In the presence of super-ethanol E85, one reduction of 40 % on CO emissions2 shall apply, except where such emissions exceed 250 g/km. One abatement of 2 administrative horses shall apply for administrative power, except where the latter exceeds 12 administrative horsepower.
In the case of vehicles owned or hired by employees or managers entitled to reimbursement of mileage costs:
- A weighting factor is applied to the standard tariff according to the number of kilometers reimbursed by the company to each employee or manager.
- A reduction of €15,000 shall be applied to the total amount of tax due on all vehicles owned or leased by employees or managers.
Coefficient applicable to the settled tariff | |
|---|---|
Up to 15,000 km | 0% |
From 15,001 to 25,000 km | 25% |
From 25,001 to 35,000 km | 50% |
From 35,001 to 45,000 km | 75% |
From 45,001 km | 100% |
Please note
This reduction shall be subject to de minimis aid regulation. It is subject to the thresholds set out in the table above for exemptions.
VAT taxation system
As regards the reporting formalities and the payment of the annual CO₂ emissions levy and the levy on air pollutant emissions, these are subject to the company's VAT system:
- The persons liable to pay the normal effective taxation system or the persons not liable for VAT must declare the taxes on the Form No. 3310 A, annex to the VAT return. This schedule must be filed in January following the tax period.
- The persons liable to pay the simplified VAT system must report taxes on the form no. 3517 which must be filed in respect of the financial year in which the tax became chargeable. This form must therefore be submitted within 3 months of the end of the financial year if it does not end on 31 December or the May 3 in other cases.
Declaration and payment shall be made exclusively by electronic channel on the tax website.
Please note
Calculation support sheets (Form #2857-FC-SD and Form #2858-FC-SD) are available on impots.gouv.fr. These forms may, where appropriate, be requested by the tax authorities.
Exemption from declaration
The company shall be exempted from this declaration where the amount of the mileage reimbursed is less than or equal to €15,000.
It is also valid when the amount of tax due is nil (equal to zero). Failure to make a declaration shall be deemed to constitute an assessment of that tax.
Obligation to draw up a recapitulative statement of affected vehicles
Companies must now keep, for each of the charges for which they are liable, an annual summary statement of the charges for the economic use of the vehicles assigned to their activity.
This summary report shall also list the following information for each affected vehicle:
- Technical parameters (engine...)
- Date of first registration and date of first registration in France
- Assignment Terms
- Assignment periods.
The purpose of the recapitulative statement is to collect the information necessary for the calculation of taxes on the economic use of vehicles. It must be up to date by the date of the declaration. The tax authorities may have access to them if necessary. This status will be communicated to him at the first request of the administration.
Please note
Exempt vehicles must be presented separately by reason of exemption.
Taxes on the use of vehicles for economic purposes (including Article L421-94 defining the 2 taxes)
Definition of the different categories of vehicles (M1, N1, etc.)
Directorate of Legal and Administrative Information (Dila) - Prime Minister
Directorate of Legal and Administrative Information (Dila) - Prime Minister
Ministry of Finance