The purchase or rental of a passenger vehicle by a company is subject to specific taxation which has recently changed and which should be known in order to optimize your purchase and your travel expenses .
Vehicle taxation and depreciation
passenger cars: motor vehicles intended for the transport of passengers and comprising, in addition to the driver’s seat, a maximum of eight seats;
vehicles designed and built for the transport of goods with a maximum weight not exceeding 3.5 tonnes (utility vehicle) and which are intended for the transport of passengers
They should be distinguished from “company” vehicles , i.e. vehicles without rear seats or directly attached to the operation of the activity (vehicles intended for resale, vehicles intended for sports competitions or vehicles intended for training at the driving).
The purpose of this article is to review the taxation of vehicles used in particular by company directors.
Indeed, at the time of choice (purchase by the company or directly with accounting for mileage allowances ), it is important to take into consideration the tax impact of the options available to you, particularly with regard to the latest developments in terms of since January 1, 2017.
that they use in France regardless of the State in which the vehicle is registered,
NB : The actual possession or use of the vehicle by the company is sufficient for the company to be liable for the tax.
The vehicles subject to the tax are passenger vehicles as defined above.
The companies liable for the tax are all kinds of companies, regardless of their form and purpose. Associations and unions are not liable for it.
Modes of vehicle detention
Excluding vehicles owned by the company, the following are also taxed:
vehicles rented by the company (more than one month)
vehicles made available to the company by another company
vehicles owned or leased by the employees of a company or its managers and for which the company reimburses mileage costs (regardless of the terms of reimbursement).
The duration of use of the vehicle for the calculation of the TVS
Regarding the duration of use, the tax will be due regardless of the duration of use of the vehicle during the year.
Note that for rented vehicles, the tax is only due if the rental period exceeds one calendar month.
First component of TVS:
between €0 and €27 depending on the CO2 emission rate, for vehicles first put into circulation on or after June 1, 2004, and which were not owned or used by the company before January 1, 2006 ;
between €750 and €4,500 for other vehicles, depending on the fiscal horsepower.
Second component of the TVS:
Between €20 and €600 depending on the year the vehicle was put into circulation and its type of fuel.
vehicles intended exclusively either for sale, or for short-term rental, or for the performance of a transport service available to the public (e.g. taxis), when these operations correspond to the normal activity of the company that owns it;
vehicles hired for a period of less than one month;
Vehicles suitable for wheelchairs : since 1 January 2017, passenger vehicles built or modified to be accessible for people seated in wheelchairs are also exempt from this tax.vehicles powered by certain energy sources (plug-in hybrid and all-electric vehicles, see below).
Hybrid cars and TVS
Private cars running on electric power and petrol or diesel, owned or used by companies, and emitting a rate less than or equal to 110 g/km of CO2 are exempt from the first component of the TVS tariff.
This exemption is limited in time for a period of eight quarters (2 years) counted from the first day of the 1st quarter in progress on the date of first entry into service of the vehicle.
In addition, vehicles running exclusively on electric power are exempt from the second component of the TVS tariff. They can also be de facto exempt from the first component if they emit less than 50g/km of CO2.
Taxation of depreciation on vehicles
The purchase price of a motor vehicle is not to be included in professional expenses and therefore does not give rise to a deduction .
In this context, a vehicle is generally depreciated over a period of 5 years. However, all of the accounting amortizations observed are not deductible from the company’s results (in this context, extra-accounting reintegrations should be carried out).
Indeed, the limit of the amount of the tax-depreciable amount depends on the CO2 emission rate of the vehicle: