TVS 2024 calculation: how to calculate taxes on a vehicle?

How do I calculate my corporate vehicle tax ( TVS ) for 2024 ?

TVS is payable by all profit-making companies that own or use vehicles. However, there are exceptions.

So under what conditions can you be exempted from TVS?

And moreover, what are the overall terms and conditions to be aware of, and the calculation scales to be applied?

Let's take a look at this tax declaration.

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Do you have to pay company car tax?

Companies and vehicles liable for tax

Your company is required to pay TVS:

• if your head office is located in France. However, the place of registration of your vehicle has no impact;
• if you own or use (lease, loan, etc.) vehicles to transport people. This applies not only to vehicles owned by the company, but also to those belonging to its directors or employees;
• regardless of legal form or taxation method.

The tax also applies to certain specific types of vehicle:

• passenger cars (marked "VP" on their registration documents),
• vehicles used to transport people, their luggage or goods, classified in category N1. In other words, vehicles marked "van" or "CTTE" on their registration papers, but with several rows of seats.

Consequently, motorcycles and scooters are not subject to TVS.

Exemptions

In certain cases, companies are exempt from the TVS.

Which vehicles can be used to avoid paying TVS?

• vehicles intended for :
  • for sale (cars offered for sale, demonstration or test cars, etc.),
  • rental, if they are used exclusively for rental purposes,
  • public transport (cabs, VTC, tourist vehicles, etc.),
  • driving lessons at driving schools,
  • sportsinstruction and competitions (excluding sports driving lessons on circuits),
  • agricultural activities,
  • the operation of ski lifts,
• vehicles rented for short periods (less than 30 consecutive days),
• wheelchair-accessible vehicles in category N1,
• electric vehicles emitting less than 60g of _CO2 per kilometer,
• hybrid vehicles combining gasoline and gas, and emitting less than 61 g of _CO2 per kilometer.

☝️ There are also specific exemptions based on _CO2 emissions or tax power. More on these below.

TVS calculation: how to proceed?

What you need to know before calculating

• The tax period runs from January 1 to December 31.
  
• Vehicle tax is calculated by calendar quarter. For example, if you used a vehicle from January to March, you pay one quarter. If you used it until April, then you pay two, as any quarter started is due. Finally, the rate to be applied for each quarter is equal to 1/4 of the annual rate.
  
• There are a number of factors to consider when calculating your rate:
  • the number of vehicles owned or leased for more than 30 days in a quarter,
  • _CO2 emissions or fiscal horsepower,
  • fuel type.

Finally, the amount payable to the tax authorities depends on two components, each with its own scale. The sums must be added together to obtain the amount of company vehicle tax.

First component: what is the 2024 calculation scale?

The first component relates either to CO2 emissions or to fiscal power.

There are three categories of vehicle for this first calculation:

• vehicles for which the applicable rate relates to _CO2 emissions, broken down as follows:
  • category 1: vehicles covered by the new registration system (first registration from March 2020) ;
  • category 2: vehicles in circulation since June 1, 2004, and used or owned by the company since January 1, 2006;
• category 3: vehicles that do not fall into either of the above two categories, and for which the applicable rate is therefore related to fiscal power.

The 2024 TVS scale for the first and second categories :

The scale for the third category :

☝️ There are temporary or permanent exemptions from this first component.

They apply to vehicles powered by the following energy sources:

• combination of electric power and gasoline or E85 superethanol engine,
• combination of gasoline and liquefied petroleum gas or natural gas fuel.

This exemption is temporary (12 quarters) for :

• vehicles covered by the new registration system, with _CO2 emissions less than or equal to 120 g/km ;
• other vehicles with _CO2 emissions of 100 g/km or less.

This exemption is definitive for :

• vehicles covered by the new registration system, with _CO2 emissions of 50 g/km or less;
• other vehicles with _CO2 emissions of 60 g/km or less.

Second component: what is the 2024 calculation scale?

There's another scale involved in calculating the TVS, and this relates to the type of fuel and the year in which the vehicle was put on the road:

Reimbursement of mileage expenses

When company officers or employees are reimbursed for mileage expenses, a weighting coefficient is applied according to the number of kilometers reimbursed:

☝️ Good to know: companies benefit from a €15,000 allowance on all vehicles used.

TVS calculation help

Sounds complicated?

Don't panic, there are online tools to help you calculate your company vehicle tax.

💡 For example, you can use the one provided by the PREVI'START website.

TVS tax declaration

You must declare your TVS before January 15.

To do this, simply use the forms available on the Service-Public.fr website:

• If you are subject to the normal VAT system
• If you are subject to a simplified tax regime
• If you are not liable for VAT

☝️ However, you are exempt from making this declaration in certain cases:

• when the amount of mileage expenses reimbursed by the company is less than or equal to €15,000,
• when the company is not liable for any tax after the €15,000 allowance.

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Towards a lighter TVS calculation in 2024?

You now know everything there is to know about calculating company car tax.

But don't forget to keep an eye on the news, as changes are on the horizon. The Finance Bill for 2022 includes a number of new features, including changes to the TVS scales.

As a result, the calculation will be simplified and, in some cases, the tax will be more advantageous depending on the _CO2 level emitted by vehicles, particularly those registered to the WLTP standard (Worldwide Harmonized Light Vehicles Test Procedures).