French Car Taxes


Car registration tax
   (taxe sur les certificats d'immatriculation)
Help for acquisition of polluting vehicles ("Bonus")
   (Aide à l'acquisition des véhicules polluants ("Bonus"))
Malus on the least polluting cars
   (malus applicable aux voitures particulières les moins polluants)
Additional registration tax
   (taxe additionnelle à la taxe sur les certificats d'immatriculation)
Annual tax on keeping vehicles
   (taxe annuelle sur la détention de véhicules)
Annual Company car tax
   (taxe sur les voitures de société)
Car import duty  
   (douane)
VAT on cars

French car taxes were simple until global warming theories made CO2 emissions a holy cow that now overshadows all types of pollution.

The focus on low CO2 emissions automatically favours diesel engines. However, diesel engines not fitted with a particle filter are more polluting than most petrol cars. As a result, the CO2 taxes have increased inner-city pollution in France, notably with diesel particles that can provoke cancer. A notable increase of nitrogen pollution from diesel cars has also been noted. After a quick glance on the following two Wikipedia articles about diesel excaust contaminants, one may seriously wonder how anyone can call diesel cars "clean" just because of low CO2 emissions:

en.wikipedia.org/wiki/Diesel_exhaust_air_contaminants
en.wikipedia.org/wiki/Diesel_particulate_matter

It may be tempting to disregard the pollution issue and buy a small diesel car to obtain the tax credit, not least if you need the car for business purposes, since you can only recover the VAT on diesel, but you need to be aware that sooting up and clogging up can be a problem in modern diesel engines if they are mostly used in cities or for short trips or an economic driving style. The particle filter can be clogged up by unburned particles over time if it doesn't become hot enough from time to time. In such cases, the tax credit risks being eaten up by increased repair and maintenance bills on the longer term. Neither manufacturers nor car dealers have any lasting solution to this problem, since the cause of the problem is that such diesel cars are being used for something they were not designed - short city trips. The consumer magazine Que Choisir published a detailed article about this problem in issue 489 - February 2011. Nevertheless, car dealers indiscriminately propose diesel cars to buyers, knowing that the French are obsessed by diesel cars even for purposes where they are unsuitable.

As you will note, if you read the complicated information below, vans are relatively untaxed. If you only need to transport one to three people and you don't want a small low-CO2-emitting car, then you might want to consider if a van would be an acceptable option instead of a passenger car.

Please beware, when reading the amounts below, that due to the politically correct nature of these taxes and bonuses, they change almost as frequently as the seasons, so please verify the figures with a reliable source before committing yourself.

Car registration tax
Taxe sur les certificats d'immatriculation des véhicules



Legal basis: 1599 quindecies of the Code général des impôts.
Vehicles concerned: all motor vehicles and trailers.

This tax is due when registering or re-registering a motor vehicle. The tax varies with the région and is fixed as an amount per fiscal horse (Chevaux-Vapeur - CV - literally "horse-steam"). The number of fiscal horses is the result of an obscure formula taking many different factors into account. The prefecture will calculate it if you don't know it. The tax is typically €45 per fiscal horse. A petrol family saloon car could have for example 9 fiscal horses. A management fee of €4 is due in addition.

List of the registration tax per CV by région / département. Government site.
List of the registration tax per CV by région / département. Unofficial site. 

The tax rate per horse-steam is reduced by 50% in the following cases:

  • Vans and lorries above 3.5 tons
  • Non-agricultural tractors
  • Motorbikes

The resulting tax rate per horse-steam is further reduced by 50% for any vehicle more than 10 years old. For example, an 11-year old motorbike would cost 50% of 50% of the normal rate, or 25%.

In the special cases of

  • Trailers
  • Agricultural vehicles
  • Vehicles registered in the special TT series

a flat tax of 1.5 times the rate per horse-steam is due.

For mopeds, a flat tax of 1 x the rate per horse-steam is due.

Car dealers and agents are exonerated from the tax for demonstration cars less than 3.5 tons.

For cars registered in the special W series, a flat tax of 2 x the rate per horse-steam is due.

For cars registered in the special WW series, a flat tax of 1 x the rate per horse-steam is due.

No tax is not due in the following cases:

  • Change of matrimonial status or domicile
  • If issuing the registration certificate is the result of an error committed by the administration
  • If issuing the registration certificate is the result of the registration number being fraudulently used by someone else
  • If the only purpose of re-registration is to move the car from the old registration system to the new system introduced in 2009

There is no tax on motorised 2- or 3-wheel bicycles without bodywork.

If delivery of the registration certificate is the result of more than one event, only the most expensive case is taken into account.

A région can decide to reduce or not apply the tax in case of vehicles fully or partially using one of the following energy types:

  • Electricity
  • Natural gas
  • LPG (liquified petroleum gas) (GPL (gaz de pétrole liquéfié))
  • Superethanol E85

Help for acquisition of polluting vehicles ("Bonus")
Aide à l'acquisition des véhicules polluants ("Bonus")

Legal basis: Decree number 2007-1873 as updated by Decree number 2010-1618.
Vehicles concerned:
1) "passenger cars" (tourisme) as defined by EU Directive 2007/46/EC annex II C 1 category M1: saloon, hatchback, station wagon, coupé, convertible, multi-purpose vehicle, with a maximum of 9 seats, maximum weight 3.5 tons,
2) vans with a maximum weight of 3.5 tons,
3) any other category of vehicle subject to CO2 emission regulations  according to EU Directive 80/1268/EC or EU Regulation 715/2007.

When purchasing or leasing (with a leasing contract with a duration of at least two years) a new car and registering it in France, persons having a residence in France or companies having an establishment in France can receive a tax credit which is deducted from the car's price, depending on the car's politically correct capabilities according to the global warming scam. The less CO2 emission, the more tax credit. No pollution of any kind produced by the car is taken into account, so even very polluting diesel engines benefit from the bonus.

The car must not have been registered before in any country.

The French registration must be permanent (as opposed to some temporary series of registration numbers).

The car must not be intended for resale as new.

A leasing company cannot obtain the tax credit if the car is leased out for two years or more (in which case it is the user who obtains the tax credit).

A car dealer or agent cannot obtain the tax credit for demonstration cars. However, if a demonstration car is sold within 12 months of its first registration, it is considered new for the purpose of the buyer obtaining the tax credit.

In most cases, the car dealer will deduct the bonus from the price so you don't have to wait for the tax credit. However, this is not an obligation. If the dealer deducts the bonus, it must be deducted from the net price including VAT and mentioned as "Bonus écologique - Grenelle de l'environnement" on the invoice.

a) Passenger cars having been type approved under EU Directive 70/156/CE or EU Directive 2007/46/CE:

Tables for vehicles ordered on or after 1 August 2012:

CO2 emission, g/kmBonus (tax refund)
0-20 *)   €7000
21-50 €5000
51-60 €4500
61-90 €550
91-105 €200
106 or more 0
Hybrid Cars (electricity + petrol or diesel) if the buyer is a natural person **)
CO2 emission, g/kmBonus (tax refund) Examples
0-110 €4000 Toyota Prius, Toyota Auris HSD, Lexus CT 200h, Peugeot 3008 Hybrid4, Honda Insight, Honda Jazz Hybrid

*) The bonus cannot exceed 20% of the purchase price of the car including VAT and the cost of batteries if these are rented.

**) A self-employed person being entrepreneur individuel is a natural person.

Electric Cars
Bonus (tax refund)
€7000

b) Other passenger cars: 

1-4 fiscal horses (CV - horse-steam): the bonus is €200.

c) Vans and other vehicles that are not passenger cars subject to CO2 emission regulations  according to EU Directive 80/1268/EC or EU Regulation 715/2007 which have a French type approval or a type approved under EU Directive 70/156/CE or EU Directive 2007/46/CE:

CO2 emission between 0 and 60 g/km: the bonus is €7000.

Premium for destruction of an old car

An additional bonus of €300 is paid in connection with the purchase of a car subject to the above bonus if a passenger car or van older than 15 years, counted on the invoice date for the new car, from the first registration date, is destroyed.

The owner of the new and the old car must be the same person or company.

You must have owned the car to be destroyed at least six months.

The car to be destroyed must be registered in a standard series (not a temporary registration).

There must be no claims on the car.

It must not be car that has been written off after an accident.

It must still be insured.

Only one car destroyed per car purchased qualify.

Bonus for modification

A tax credit of €2,000 is paid to a natural person who transforms a petrol (gasoline) car to LPG.

It must be a passenger car.

The invoice date for the transformation work must be before the car's third anniversary, counted from the date of first registration.

The car must have a current registration certificate and insurance.

It must not be car that has been written off after an accident.

The CO2 emission rate before transformation must not exceed 155 g/km, limit reduced to 150 g/km for invoices dated 1/ January 2012 or later.

Application form (pdf, new window).

Guide for filling in the application form (pdf, new window).

Malus on the least polluting cars
Malus applicable aux voitures particulières les moins polluantes

Legal basis: Article 1011 bis of the Code général des impôts.
Vehicles concerned: "passenger cars" (tourisme) as defined by EU Directive 2007/46/EC annex II C 1: saloon, hatchback, station wagon, coupé, convertible, multi-purpose vehicle.

As you will find out, for petrol (gasoline) and diesel cars, the only criteria for this tax is the CO2 emission, regardless of how much pollution the car produces, and regardless of the presence or not of a diesel particle filter. The result is that less polluting petrol engines are taxed more than polluting diesel engines, an insane and disastrous pollution policy that contributes to more than 40,000 annual deaths caused by air pollution in France.

The Malus is not due on vehicles registered in the category "Handicap" or "Véhicule automoteur spécialisé".

The Malus is not due for persons holding a carte d'invalidité or in charge of a child holding that card. Only one car can be exonerated in this category.

When registering a car the first time in France, an additional tax called malus is due depending on the car's politically correct capabilities according to the global warming scam. The more CO2 emission, the more tax. It is important to underscore that no pollution of any kind produced by the car is taken into account.

The tax is calculated according to one of two formulas:

a) Cars having received a type approval under EU Directive 2007/46/EC where the CO2 emission in grams per km is mentioned, table valid for cars first registered on or after 1st January 2013:

CO2 emission, g/kmMalus (extra tax)
0-1350
136-140 €100
141-145 €300
146-150 €400
151-155 €1000
156-175 €1500
176-180 €2000
181-185 €2600
186-190 €3000
191-200 €5000
201 and more €6000

Families in charge of at least three children pay a reduced tax for one car per family with at least five seats. For each child, except the first two, 20 grams of CO2 is deducted from the car's CO2 value to obtain the taxable CO2 value. A refund of the difference between the tax paid and the tax due after deduction can then be obtained on demand. This refund can only be obtained for one vehicle. Download the refund form here (pdf, new window)

b) Cars not falling in the (a) category, table valid for cars first registered on or after 1st January 2013:

Number of fiscal horses (CV)
(in horse-steam to be correct)
Annual tax
1-5 €0
6-7 €800
8-9 €1400
10-11 €2600
12-16 €4600
17 and more €6000

In case of cars imported to France after a first registration abroad, the malus due is reduced by 1/10 per year started abroad since that initial registration. For example, if a car was first registered on the 1 July 2009 and it is registered in France on the 1 September 2010, two years have been started (on the 1 July 2009 and the 1 July 2010), so the malus due is the normal amount less 2/10 of the normal amount, or 80% of the normal malus.

For cars equipped to use superethanol E85 and for which the CO2 emission is 250 g/km or less, the number of grams of CO2 per km is reduced by 40% for the calculation of the malus.

Additional registration tax
Taxe additionnelle à la taxe sur les certificats d'immatriculation

Legal basis: Article 1010 bis of the Code général des impôts.
Vehicles concerned: "passenger cars" (tourisme) as defined by EU Directive 2007/46/EC annex II C 1: saloon, hatchback, station wagon, coupé, convertible, multi-purpose vehicle.

This tax is due on registration or re-registration of cars first registered on or after 1st June 2004, in addition to the Car registration tax (Taxe sur les certificats d'immatriculation des véhicules).

This tax is only due if the Malus on the most polluting cars (Malus applicable aux voitures particulières les plus polluantes) was not due on the car's first registration in France, for example in case of a car first registered in France before the malus was introduced.

Cars registered in the special W or WW series are not concerned by this tax.

The tax is not due in the following cases:

  • Delivery of a duplicate registration certificate (for example in case of theft or loss)
  • Change of matrimonial status or domicile
  • New registration certificate because of technical modifications of the car
  • New registration certificate because of change of the car's use
  • If issuing the registration certificate is the result of an error committed by the administration
  • If issuing the registration certificate is the result of the registration number being fraudulently used by someone else
  • If the only purpose of re-registration is to move the car from the old registration system to the new system introduced in 2009

The tax is calculated according to one of two formulas:

a) Cars having received a type approval under EU Directive 2007/46/EC where the CO2 emission in grams per km is mentioned:

CO2 emission, g/kmTax per gram CO2
0-200 €0
201-250 €2
251 and more €4

Example, for a car emitting 275 grams of CO2 per km, the tax is (250-200) x €2 + (275-250) x €4 = €200.

b) Cars not falling in the (a) category:

Number of fiscal horses (CV)
(in horse-steam to be correct)
Tax
0-9 €0
10-14 €100
15 and more €300

For cars equipped to use superethanol E85, the tax is reduced by 50%.

Annual tax on keeping vehicles
Taxe annuelle sur la détention de véhicules

Legal basis: Article 1011 ter of the Code général des impôts.
Vehicles concerned: "passenger cars" (tourisme) as defined by EU Directive 2007/46/EC annex II C 1: saloon, hatchback, station wagon, coupé, convertible, multi-purpose vehicle, first registered in 2009 or later.

The tax is not due on vehicles registered in the category "Handicap" or "Véhicule automoteur spécialisé".

The tax is not due for persons holding a carte d'invalidité or in charge of a child holding that card.

The tax is not due if the Company Car Tax (taxe sur les voitures de société) is due.

The tax is a flat rate of €160 per year and is due in the following cases, for persons or companies who own or lease (with a leasing contract with a duration of at least two years) the car on the 1 January in any year.

For example, if you buy a car on the 2 January 2011, the first tax will be due on the 1 January 2012.

The first tax is due in the year following the year of registration.

a) Cars having received a type approval under EU Directive 2007/46/EC where the CO2 emission in grams per km is mentioned: the tax is due if the CO2 emission exceeds the values in the table below:

Year of first registration CO2 emission, g/km
2009 250
2010245
2011245
2012 and later190

b) Other cars: the tax is due for cars having 17 fiscal horses (CV - horse-steam) or more.

Annual company car tax
Taxe sur les voitures de société

Legal basis: Article 1010 of the Code général des impôts.
Vehicles concerned: "passenger cars" (tourisme) as defined by EU Directive 2007/46/EC annex II C 1: saloon, hatchback, station wagon, coupé, convertible, multi-purpose vehicle.

This is an annual tax paid by companies in addition to the vignette. The tax is collected with VAT and is due for cars the company use in France, regardless of the country of registration, and for French-registered cars they own. It may also be due if mileage is refunded to employees. See later. Self-employed operating as entreprises individuelles in their own name, as opposed to having a separate legal entity in the form of a company, are not concerned by this tax. 

The tax is not due in the following cases:

  • cars destined exclusively for sale
  • cars for short-term rental
  • cars used for public transport (including taxi, transfers etc. even if not shared with other passengers)

if the respective activity is the normal activity for the company.

The tax is calculated according to one of two formulas:

a) Cars having received a type approval under EU Directive 2007/46/EC and first registered on the 1 June 2004 and which were not owned or used by the company before the 1 January 2006:

CO2 emission, g/km Tax per gram CO2 emission
0-50 €0.00
51-100 €2.00
101-120 €4.00
121-140 €5.50
141-160 €11.50
161-200 €18.00
201-250 €21.50
251 and more €27.00

Example: my Toyota Hiace emitting 298 gram CO2 per km, if used by a company, would fall in the most politically incorrect category of cars emitting more than 250 gram CO2 per km. The annual company car tax would thus be 298 x €19 = €5,662.

b) Cars not falling in the (a) category:

Number of fiscal horses (CV)
(in horse-steam to be correct)
Annual tax
1-3 €750
4-6 €1,400
7-10 €3,000
11-15 €3,600
16 and more €4,500

There is a temporary exception for hybrid cars using electricity and either petrol (gasoline) or diesel and emitting less than 110 gram CO2 per km.

As you can see, this tax can be a very significant cost to a company.

In case of leasing, it is the leasing company that pays the tax.

The tax is not a deductible expense for the calculation of corporation tax.

If an employer pays mileage to an employee using his or her own car (whether owned or leased) for business trips, this tax may be due on the employer to avoid that the employer tries to escape the tax by using employees' cars.

Total number of km refunded per year Percentage of the normal tax due
0-15,000 0%
15,001-25,000 25%
25,001-35,000 50%
35,001-45,000 75%
45,001 and more 100%

However, an allowance of €15,000 is deducted from the tax due because of employees' cars.

Import duty

There is no import duty on cars imported from the EU/EEA. Cars imported from other countries are exonerated under certain conditions.

VAT on Cars

VAT (sales tax - TVA) at 19.6% is due on new cars and cars assimilated with new cars, typically imported cars less than six months. With very few exceptions, businesses cannot deduct VAT on cars and petrol (gasolene). 80% of diesel VAT may be deductable. This is in reality yet another company car tax.

Epilogue

What is left of the car after taxes ...


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