The TVS is the tax on company cars. From 2023, the TVS will be replaced by 2 other taxes. But what is the TVS and how is it calculated?
We'll explain:
What is SST?
Before calculating the SST, it's important to understand what it is.
From 2023, the company car tax (TVS) will be replaced by two separate taxes.
- The annual tax on carbon dioxide (CO₂) emissions.
- The annual tax on emissions of atmospheric pollutants.
The main aim of these measures is to encourage companies to use less polluting vehicles for their business activities.
Who is affected by the TVS?
The TVS applies to all profit-making entities established in France, regardless of their legal status, whether a company (such as an SASU or SARL) or a sole proprietorship (whether under the micro-entrepreneur scheme or not).
TVS therefore applies to vehicles used in France and registered in the company's name, regardless of whether the vehicle is registered in France or abroad.
Passenger cars must be used for business purposes for VAT to apply.
However, some businesses benefit from permanent exemptions due to the nature of their activities, such as car sales companies.
Vehicles owned or leased by employees, partners or directors of the company are also exempt, provided they are used for business purposes.
How is the TVS calculated?
The amount of the TVS is determined according to a progressive scale based on the vehicle's CO₂ emissions.
The calculation of the annual tax on air pollutant emissions depends on the Crit'Air classification of the vehicle.
Certain vehicles are exempt from these taxes, in particular electrically powered vehicles (Crit'Air E) and wheelchair accessible vehicles.
Online simulators are available to help you calculate these taxes.
Good to know: from 1 January 2025, hybrid vehicles will no longer benefit from specific exemptions.
Companies must declare and pay these taxes annually, taking into account the length of time the vehicle is used for commercial purposes in France.
When should the TVS be declared?
The tax period runs from 1 January to 31 December.
Tax is due on the use of vehicles during the previous year, with two deadlines depending on the VAT system:
- for companies not subject to VAT or those subject to the standard VAT regime: declaration and payment must be made before 25 January of the following year;
- for companies subject to the simplified regime (RSI): the declaration and payment must be made before 3 May or within 3 months of the end of the financial year, if this differs from the calendar year.
What are the steps involved in declaring TVS?
These taxes must be declared online at impots.gouv.fr, whatever your VAT regime.
Step 1:
You must keep an updated annual summary of all the vehicles in your company that are subject to the tax. This statement must include detailed information on each vehicle. It must be presented to the tax authorities on request.
Step 2:
If you are under the normal VAT scheme or not subject to VAT, you must use form 3310 A, an annex to the VAT return.
If you are subject to the simplified scheme (RSI), you must complete form 3517-S.