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Tax Changes on Company Vehicles

Primexis Insights
7 November 2017
laptop and papers

The Social Security Financing Act for 2017 of December 23, 2016 (1) set out new rules for the taxation of company vehicles.

As of January 2018, the tax period will co with the calendar year and will extend from January 1 N to December 31 N, and no longer from October 1 N to September 30 N + 1.

Who is affected ?

TVS is an obligation for companies, having their registered office or a permanent establishment in France, and is based on the vehicles they use, own or rent, regardless of:

  • their nature or legal form (commercial or civil company);
  • Their mode of taxation (income tax or corporation tax).

What are the new deadlines ?

How to declare TVS ?

The rules for declaring your TVS depend on your VAT tax regime (2)

What’s the mode of payment ?

  • If VAT statement is used to tele-declare the TVS: the payment of your TVS is also obligatorily by tele-payment;
  • For declarations made by paper n°2855: payment by bank transfer is compulsory from € 50 000,otherwise the payment can be made by check or cash (maximum € 300).

Rokhaya Bokoum
Senior Accountant
International Business Services

(1) Law n° 2016-1827 of 23 décember 2016 of Social Security Financing Act for 2017
(2) VAT : Different regime, More here.

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