CVAE: the contribution on business added value
CVAE is the second component of the territorial economic contribution. Being gradually abolished, it remains due for businesses above a turnover threshold. Here is what to file and pay.
What is CVAE?
The contribution on business added value (CVAE) is a local tax based on the added value a business produces. Together with CFE it forms the territorial economic contribution (CET). It is calculated from the financial year’s accounts and declared each spring.
The principle is simple: the larger the business, the higher the effective rate, up to a ceiling. Small businesses are exempt or lightly taxed.
Who is liable?
Two cumulative conditions: carrying on an activity subject to CFE and achieving turnover excluding VAT above €500,000. An EU company running an establishment in France may therefore be in scope if the turnover taken into account exceeds this threshold; the scope question (company turnover, allocation between establishments) must be analysed carefully.
A business is in principle exempt in its year of creation, except where it takes over an existing activity. To assess whether an establishment exists, see our article on permanent establishment in France.
A tax being phased out
The 2025 finance law postponed the full abolition of CVAE to 2030, with a gradual reduction of the maximum rate until 2029. Relief measures, notably for businesses with limited turnover, accompany this path. See the official CVAE abolition calendar (in French) for up-to-date details.
Calculation: from added value to the amount due
The amount depends on three elements: taxable added value (derived from the accounts, capped at a percentage of turnover), the rate, linked to turnover through a progressive scale, and any relief. Rates change from year to year: refer to the scale in force for the year concerned rather than a fixed figure.
An additional charge for chambers of commerce and industry applies. A very small amount is not collected.
Returns and payment
Source: CVAE on economie.gouv.fr (in French).
Common mistakes
- Confusing the filing threshold (€152,500) with the taxation threshold (€500,000).
- Not paying the June and September instalments, with surcharges as a result: see penalties and late-payment interest.
- Allocating added value badly between several establishments.
- Assuming the phase-out already removes the filing obligation.
How Hanoutax helps
Hanoutax, a tax mandatary acting under a written mandate, can prepare and file CVAE returns on your behalf, check the calculation and instalments, review the notices received and 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
Has CVAE already been abolished?
No. Under the finance law in force, abolition is scheduled for around 2030, with a gradual rate reduction. It is therefore still filed and paid by the businesses concerned.
From what turnover is CVAE due?
Above €500,000 excluding VAT, for businesses subject to CFE.
Must I file a return if my turnover is below €500,000?
The 1330-CVAE return is required from €152,500 of turnover, even if no CVAE is finally due.
When are the instalments paid?
On 15 June and 15 September, 50% each, where the amount exceeds €1,500.
Is a foreign company with a single warehouse concerned?
It may be if it is subject to CFE and exceeds the threshold. Each case requires an analysis of the scope.
Does Hanoutax calculate my CVAE?
We prepare and check the returns under the mandate, from the data you provide.
Informational content, which does not constitute legal advice. The rules that apply depend on your situation.
A CVAE return to prepare?
See also