Company Car Tax Benefits for EV and Hybrid Vehicles

Last updated: 2 December 2019

The TVS Tax (Taxe sur les véhicules de société) is applicable to company (passenger) cars. It is made of two components. The first component is based on CO2 Emissions (or Horse Power for older vehicles), and is calculated using a staggered approach and is exempted for vehicles <60g CO2 / km. The second component is based on environmental impact and is also staggered, and much higher for (older) diesel vehicles.

The straggered approach was aimed at encouraging companies to renew their fleet in favor of less polluting vehicles. The tax exemption was originally valid for a period of 24 months after registration.

Electric vehicles are fully exempt from the company vehicle tax (TVS). This exemption only applies to vehicles emitting less than 60g/km of CO2.

Since January 1, 2018, hybrid vehicles that use both gasoline and natural gas fuel or liquefied petroleum gas are exempted permanently (if the CO2 emission rate is less than or equal to 60 grams / km) or temporarily (if CO² emission between 60 and 100 grams / km) of the first component of the TVS rate.

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End uses covered
  • Transport end-uses
  • Road transport