Among the various taxes French companies must pay every year, there is the tax on company vehicles (TVS). This tax affects vehicles used by the company for its professional activity, but not all of them: it considers the specificities of each company car, including its energy consumption, the number of seats, etc.
Contents
What is the TVS?
The TVS is a tax due by companies that own, use, or lease vehicles for their business activity. For a vehicle to be taxable to the TVS, it must meet several factors, such as:
- Belonging to the “VP” category,
- Belonging to the “N1” category and be used for passenger transport,
- Have 5 seats for pick-up trucks,
- Be owned or leased by the company for at least 30 days in a quarter.
Each year, companies owning vehicles meeting these criteria must file an annual declaration by January 15 of the following year using form 2855-SD for companies subject to the simplified tax system or form 3310-A to be filed for other tax systems.
How to calculate the TVS?
The value of the TVS stems from the addition of two grids fixed by the French government. If you do not have a fleet management software that calculates it automatically, then below is the procedure:
The first part of the tax is determined according to the carbon dioxide (CO2) emissions for vehicles that have had a regional type approval, or, for vehicles marketed until June 2004 or owned by the company before June 2006, calculated according to the fiscal power. The second part of the tax is related to the energy that powers the engine and its year of introduction.
Therefore, it is necessary to take into account these different criteria to assess the TVS for each company vehicle. It should be noted that if the personal vehicles of the company’s employees or its director are used in the course of their employment and are subject to mileage reimbursement, they must also be included in the calculation of the tax due by the company. The Tax Code provides an allowance of €15,000 over the total amount of reimbursements made over the period.
To calculate the total tax due, it may be useful to use an Excel file. It will help take into account the specificities of each vehicle used for the company’s missions. It is also necessary to have the vehicle registration document for every car to ensure the tax declaration’s accuracy.
Reduce your costs by 3 to 6%.
Discover our SaaS solution to manage all the vehicles in your fleet.
Which vehicle is not subject to the TVS?
Several categories of vehicles are exempt from the TVS. First of all, van-type vehicles mainly intended for the transport of goods with only 2 or 3 seats are not affected.
Furthermore, electric or plug-in hybrid vehicles are not subject to the TVS if they emit less than 60g NDEC (or 50g WLTP) CO2 per km. Hybrid vehicles are exempt for 8 quarters, i.e., two years, if their emissions are between 60 and 100g CO2 per km.
Vehicles used to transport disabled people in the M1 category are also excluded from the tax. Finally, vehicles used in certain professions are also exempt, such as cabs, vehicles for driving school, chauffeur-driven vehicles for tourism, and vehicles for purchase and sale activities.
How to declare and pay the TVS
There are three cases depending on the VAT system under which falls the company:
- Companies that are not subject to VAT: the TVS will be declared and paid on the appendix 3310-A attached to the CA 3 declaration filed in January.
- Companies under the simplified VAT system: the 2855-SD form must be completed in paper format and sent to the SIE before 15 January 2022.
- For other companies, the TVS will be declared and paid in a dematerialized way on the appendix 3310-A of the VAT form filed in January as well.
The updated TVS for 2022
The TVS is updated every year on this public service website.
Our solution is dedicated to the moblity management. In addition to the expense reports management you can plan, book and track your business trips. It is also possible to manage your car fleet.
