Annual taxes on company vehicles (former TVS)
Since the company car tax (TVS) was replaced, two annual taxes apply to passenger vehicles used for a business activity in France: one on CO₂ emissions, the other on air pollutants.
What are these taxes?
The annual taxes on the use of vehicles for economic purposes replaced the TVS. There are two: a tax based on CO₂ emissions and a tax based on the vehicle’s air-pollutant category. They are due for each vehicle concerned, in proportion to its use for business purposes.
Who is liable, including foreign companies?
Liable are entities that own or use passenger vehicles authorised to circulate in France and linked to their business activity. Sole proprietorships are excluded. An EU company that provides a vehicle to employees or managers in France, or owns vehicles for its French activity, may therefore be concerned.
Vehicles covered
- category M1 vehicles (passenger cars up to eight seats);
- certain category N1 vehicles (light commercial vehicles) meeting the criteria;
- excluded in particular: vehicles running exclusively on electricity, hydrogen or both, and certain specific uses (ski areas, demonstration or testing).
For how vehicles may affect whether you have an establishment in France, see our dedicated article.
How are they calculated?
The amount equals the annual rate multiplied by the share of business use of the vehicle. The CO₂ rate follows a progressive scale based on emissions in g/km; the pollutants rate varies with the vehicle category, from zero for electric or hydrogen vehicles to a ceiling amount for the most polluting. Scales are revised regularly: refer to those of the year concerned.
The authority provides calculation notices (forms 2857-FC-SD and 2858-FC-SD).
Filing and payment
Sources: Service-Public Entreprendre and impots.gouv.fr (in French). For VAT filings, see VAT returns.
Common mistakes
- Forgetting vehicles provided to employees or managers.
- Not correctly splitting business use.
- Applying a scale from a previous year.
- Not attaching the annex to the January VAT return.
- Overlooking light commercial vehicles that meet the M1 criteria.
How Hanoutax helps
Hanoutax, a tax mandatary acting under a written mandate, can list the vehicles concerned with you, prepare and file the returns, check the calculation and monitor deadlines, then prepare a claim where there is an error (see tax relief and claims). The scope is set by the power of attorney with the tax authorities.
FAQ
Does the TVS still exist?
No. It was replaced by two annual taxes: one on CO₂ emissions and one on air pollutants.
Which vehicles are concerned?
Passenger vehicles (category M1) and certain light commercial vehicles (N1) used for a business activity, except in particular vehicles that are exclusively electric or hydrogen-powered.
When must I file?
Generally in January of the following year, through annex 3310-A-SD (normal VAT regime) or form 3517 (simplified regime); by 25 January for taxpayers not subject to VAT.
Is a sole proprietorship concerned?
No, sole proprietorships are excluded from these taxes.
Is an electric vehicle taxed?
Vehicles running exclusively on electricity, hydrogen or both are outside the scope.
Does Hanoutax calculate the tax for me?
We prepare and check the calculation under the mandate, from the information about your vehicles.
Informational content, which does not constitute legal advice. The rules that apply depend on your situation.