Companies that own or use private or multipurpose cars are liable for company car tax. Here's everything you need to know about TVS.
Companies have to pay company car tax every year. This tax concerns private or multi-purpose cars that they own or use in France. How does TVS work? How is it calculated? Explanations.
The TVS must be paid by all profit-making companies having their registered office in France and which own, rent or use cars for the transport of passengers or people. The tax applies regardless of the nature or legal form of the company and its mode of taxation (income tax or corporation tax). Are not affected by the tax on company vehicles:non-profit legal persons and not incorporated as a company in the legal sense.
The TVS applies to all vehicles equipped for the transport of people, also called "passenger vehicles". These vehicles can be registered in the name of the company in France, made available to it, rented by employees, managers or partners as long as the company reimburses mileage costs.
The company car tax therefore concerns the following vehicles:
Vehicles intended for the following activities are permanently exempt from TVS:
There are other exemptions. For example, vehicles using only electric power and emitting less than 60 g/km of CO2 are not subject to the TVS. Vehicles accessible to disabled people in wheelchairs and which fall under category M1 are also exempt.
It is possible to be exempt from the first component of the tax when the vehicle combines:either electric power and a petrol, liquefied petroleum gas, natural gas or E85 superethanol gas engine, or petrol fuel natural gas or liquefied petroleum gas.
The calculation of the TVS is based on two components:
The amount of the TVS corresponds to the sum of these two tariffs. To find out the details of the scale applicable to them, consult the instructions for form no. 2855 available on the impots.gouv.fr website.
It should be noted that for vehicles owned or leased by employees or managers benefiting from the reimbursement of mileage expenses, a reduction of 15,000 euros applies to the amount of tax due.
The declaration of tax on company vehicles and its payment take place in January of year N+1 for the tax period which extends from 1 st January to December 31 of the current year. Reporting procedures vary depending on the company's VAT regime. Companies that are not liable for VAT must complete appendix n°3310 A of the VAT declaration and proceed with the online declaration and then the online payment of the TVS. Companies that are subject to the simplified VAT regime must complete form 2855-SD then declare the TVS on paper, and pay the corresponding amount in cash, by bank transfer or by check. Finally, companies subject to the normal real VAT regime are required to complete Annex No. 3310 A of the VAT declaration before electronically declaring and paying the TVS.
Whatever the method of declaration, the tax on company vehicles can be paid by imputation. If the company has a claim relating to a tax collected by the business tax service (SIE), it can use it in whole or in part to pay its TVS.
It is important to remember that this tax is not deductible from the result of the company for corporation tax. On the other hand, it is deductible from the results of companies that are not subject to corporate tax.
If you need additional information on the TVS, do not hesitate to contact your SIE. You can also hire an accountant. This professional is able to accompany you and advise you to carry out all your tax declarations. He is also empowered to draw up payslips, declare social charges, provide legal advice, draft deeds, perform other ancillary services.
Thus, it is essential for a company to be well informed about the terms and conditions of application of the TVS.
