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Corporation vehicle tax (PST)

Verified 13 juillet 2020 - Directorate for Legal and Administrative Information (Prime Minister)

A corporation must pay corporation vehicle tax (PST) annually. It concerns passenger cars (intended for the carriage of passengers) or multiple-use cars (intended mainly for the carriage of persons) which the company owns or uses in France. The amount of the tax differs depending on the type of vehicle. The tax period is from 1to January to 31 December of each year.

Any company that uses or owns certain passenger vehicles in France must pay RST. This applies to any profit-making company which has its head office or establishment in France.

Technical specifications

RST applies to the following vehicles:

  • Registered in category passenger cars (with VP on the gray card, now called certificate of registration)
  • Multiple use registered in the N1 according to the European classification, intended for the carriage of passengers, their luggage or their goods in a single compartment. In practice, these are vehicles (tourist cars taxable on the VAT) whose gray card bears the mention van or CTBT but have several rows of seats
  • Truck pick-up with 5 seats minimum

Vehicle use

The TVS therefore concerns vehicles whose technical characteristics are intended solely or mainly for the transport of persons (other than commercial transport). Whether or not these vehicles are used solely for business purposes has no effect on RST.

Conversely, vehicles that are technically designed for exclusively commercial or industrial use are not subject to RST.

Vehicle owned or used by the company

RST applies to vehicles that meet the following 3 criteria:

  • Used in France by the company, including vehicles rented or placed at its disposal, regardless of their country of registration
  • Registered on behalf of the company in France
  • Owned or hired by employees, partners or officers of the company, even if they are registered in the name of natural persons, and for which the company reimburses mileage charges

Vehicle leased by the company

For vehicles leased or made available to it, the RST is calculated per calendar quarter based on the number of vehicles leased by the company liable for more than 30 days during the quarter.

The tax calculation takes into account the actual duration of each rental in consecutive days during the quarter, not in the number of days taken in aggregate over the year, nor the situation at the beginning of a quarter.

Example :

A vehicle rented for 27 days in February, 10 days in June, 20 days in July, 29 days in October and 29 days in December is not taxable at all, even if it was rented for a total of 115 days during the year.

Application of the tax according to the rental period of the vehicle

Lease duration

Taxation

Example

Less than 30 consecutive days (or one calendar month)

Total exemption, the VAT is not due

Vehicle rented between July 15 and August 12, for 29 days

Between 1 and 3 consecutive months (30 and 90 days)

RST due for a single quarter, even if the lease period is for 2 quarters

Vehicle rented between September 20 and December 8, or 80 days, taxed in a single quarter

Riding on 3 quarters

RST due for 2 quarters, if rental does not exceed 6 months (or 180 consecutive days)

Vehicle rented between May 20 and October 31, 165 days, taxed over 2 quarters

Riding on 4 quarters

RST due for 3 quarters, if rental does not exceed 9 months (or 270 consecutive days)

Vehicle rented between January 10 and September 30, 264 days, taxed over 3 quarters

Depending on the activity of the company

Vehicles intended exclusively for the following activities shall be permanently exempt from VAT:

  • Sale (e.g. cars of car dealers)
  • Rental, if the object of the company is the rental of vehicles
  • Transportation available to the public (e.g. taxis and VTC)
  • Teaching of driving (car-school) or sports competitions (except for circuit sports companies which are taxable)
  • Agricultural use
  • Use exclusively commercial or industrial

  FYI : Wheelchair-accessible vehicles are exempt from RST.

Exemption from the first component of the tax

This exemption applies where a vehicle combines:

  • or electric energy and a petrol or E85 superethanol engine,
  • gasoline using natural gas fuel or liquefied petroleum gas.

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Vehicles registered from March 2020

CO² emissions less than or equal to 120 g/km

The vehicle is temporarily exempt from the first component of the tax. This is for a period of 12 quarters. The period shall start from the first day of the first quarter in progress on the date of the first entry into service of the vehicle.

CO² emissions of 50 g/km or less

The vehicle is definitively exempt from the first component of the tax.

Vehicle registered before March 2020

CO² emissions less than or equal to 100 g/km

The vehicle is temporarily exempt from the first component of the tax. This is for a period of 12 quarters. The period shall start from the first day of the first quarter in progress on the date of the first entry into service of the vehicle.

CO² emissions less than or equal to 60 g/km

The vehicle is definitively exempt from the first component of the tax.

Short-term rental

For vehicles leased by a corporation, RST is payable only if the lease is for a period greater than 1 month during the same tax period.

Electric vehicle

A vehicle that operates solely on electric power and emits less than 60 g/km of CO₂ is not subject to RST.

Gasoline and gas vehicle

A vehicle that uses gasoline and natural gas in combination with fuel or liquefied petroleum gas is either permanently or temporarily exempted from first component of the RST tariff..

It is definitely so if its CO² emission rate is less than or equal to 60 grams/km.

It shall be temporarily so if its CO² emission rate is between 60 and 100 grams/km.

Wheelchair-accessible vehicle

A wheelchair accessible vehicle of category M1 is exempt from RST.

RST is calculated on a quarterly basis based on the number of vehicles owned or used in 1to day of each quarter, or leased for more than 30 days during the quarter.

For example, for a vehicle sold in April, it takes 2 quarters (January-February-March + April-May-June).

The rate applicable for each quarter is equal to one quarter (1/4) of the annual rate.

The amount of tax payable for each vehicle is equal to the sum of 2 components:

  • A first is based on a tariff based on either the rate of CO₂ emission or the fiscal power (depending on the date of entry into service of the vehicle)
  • One second based on emissions of air pollutants, determined by fuel type

First component

The first component applies to:

  • vehicles under the new registration device: i.e. vehicles whose first registration in France was issued from March 2020.
  • vehicles used or owned by the company since 1to January 2006, the first release of which took place since 1 June 2004
Price based on CO₂ emissions

Carbon dioxide emission rate (Co²)

Tariff applicable to vehicles under the new registration device (WLTP)

Tariff applicable to vehicles not covered by the new registration device (NEDC)

Up to 20 g/km

€0

€0

21 to 50 g/km

€1

€1

51 to 60 g/km

€2

€1

61 to 100 g/km

€2

€2

101 to 120 g/km

€2

€4.50

121 to 140 g/km

€4.50

€6.50

141 to 150 g/km

€4.50

€13

151 to 160 g/km

€6.50

€13

161 to 170 g/km

€6.50

€19.50

171 to 190 g/km

€13

€19.50

191 to 200 g/km

€19.50

€19.50

201 to 230 g/km

€19.50

€23.50

231-250 g/km

€23.50

€23.50

251-270 g/km

€23.50

€29

Greater than 270 g/km

€29

€29

The tax power tariff applies to vehicles which do not fall under the other two categories.

Tariff based on tax power

Fiscal power (in horsepower)

Rate

Up to 3

€750

From 4 to 6

€1,400

7 to 10

€3,000

From 11 to 15

€3,600

From 16

€2,500

Second component

This scale takes into account the different levels of pollution emitted by vehicles according to their type of engine and according to their year of entry into service, particularly for diesel vehicles.

Air pollutant emission charge

Year put into circulation

Petrol and similar

Diesel (diesel) and similar*

Until 31 December 2000

€50

€600

2001-2005

€45

€400

2006 to 2010

€45

€300

2011 to 2014

€45

€100

From 2015

€20

€40

Vehicles that combine electric and diesel are treated as diesel-only vehicles when they emit

  • for vehicles registered from March 2020: more than 120 g/km of CO²,
  • for other vehicles: over 100 g/km of CO².

Example of calculation of VAT

A company owns since 1to January 2014 diesel vehicle put into service on June 30, 2009. It emits 230 grams of CO2 per kilometer.

  • 1st component: 230 g CO2 per kilometer x 23,5 (applicable to vehicles emitting between 200 and 250 CO2/km) = 5 405
  • 2nd component: annual amount due under the tariff for diesel vehicles put into service from 2006 to 2010 = 300
  • total: 5405 + 300 = 5705

The annual amount of RST due for this vehicle is 5,705.

Reduction if the driver receives reimbursement of the kilometric costs

For vehicles owned or hired by employees or managers entitled to reimbursement of kilometric costs:

  • A weighting factor shall be applied at the normal rate according to the number of kilometers reimbursed by the company to each employee or manager
  • A reduction of €15,000 shall be applied to the total amount of tax due on all vehicles owned or leased by employees or managers
Coefficient applied according to mileage refunded

Mileage reimbursed by the company

Coefficient applicable to the liquidated tariff

Up to 15,000 km

0%

From 15 001 to 25 000 km

25%

25,001 to 35,000 km

50%

From 35 001 to 45 000 km

75%

From 45 001 km

100%

Imposition

The period for which the RST is payable is 1to January to 31 December of each year.

Declaration

A corporation must report vehicles owned or used by its employees or officers. However, it shall be exempted from this declaration where the amount of the kilometric charges reimbursed is less than or equal to €15,000..

In addition, a corporation does not have to file a return when it is subject only to RST for vehicles for which it reimburses its employees the kilometric expenses and it does not have to pay any tax after the application of the reduction in €15,000..

The procedure for reporting and paying VAT depends on the VAT taxation system.

For an undertaking subject to the normal real VAT arrangements

The company must telereport and telepay the RST during the month of January.

VAT and related taxes - form n°3310A

Cerfa n° 10960 - Ministry of Finance
Other number : 3310-A-SD

  FYI : You must pay the RST by remote payment.

For an enterprise subject to a simplified tax regime

The company must report and pay RST by January 15. There is no telephony procedure for this form. This return must be filed with your business tax department (SIE) or with the management of large enterprises (DGE) for those that fall under it.

GST Return - Simplified Tax System

Cerfa n° N° 11106*19 - Ministry of Finance
Other number : N° 2855-SD

  FYI : you can make your payment by bank transfer (mandatory from 50 000 €), check or cash (maximum 300 €).

For an undertaking not liable for VAT

The company must telereport and telepay the RST during the month of January.

VAT and related taxes - form n°3310A

Cerfa n° 10960 - Ministry of Finance
Other number : 3310-A-SD

  FYI : You must pay the RST by remote payment.

Payment

Where the payer declares online by means of Annex 3310A, he must pay the RST by tele-regulation..

If he files a statement 2285 paper, he can make his payment by bank transfer (obligatory from €50,000), check or cash (maximum) €300).

Regardless of the reporting modality, it is also possible to pay RST by imputation. This means that if the corporation has a claim related to a tax collected by the business tax department (SIE), it can use all or part of that claim to pay its RST (form no. 3516).

  Warning : the TVS is not deductible from business income but it is deductible from the income of companies that are not taxed on the IS.