What is the CVAE ?
In France, the company value-added contribution (CVAE) is one of the two components of the Territorial Economic Contribution (CET).
It is owed by companies and self-employed persons from a certain amount of sales. This contribution is calculated according to the value added produced by the company. It is part of the taxes payable by companies to the local competent authorities.
The CVAE is payable by companies or self-employed persons who earn more than € 500,000 in tax-free turnover, irrespective of their legal status, activity or tax regime.
Calculation of the CVAE:
The value of the CVAE is calculated on the basis of the added value produced, according to the following transaction:
(value added x effective tax rate) + [(value added x effective tax rate) x 1%].
Only expenses and income relating to taxable activities (in the scope of the CFE, and which are not exempt) are taken into account.
Whatever the closing date of the financial year, the declaration must be made in a dematerialized way at the latest:
- The 2nd business day following May 1st (between May 3rd and May 5th): declaration of value added and number of employees number 1330-CVAE;
- Within 60 days from the cessation of activity during the year;
- Within 60 days from the judgment of the initiation of a collective procedure (safeguard, reorganization or judicial liquidation) unless the initiation of the proceedings does not terminate the activity (in this case only declaration n°1329-DEF must be transmitted within 60 days).
In the year following the taxation year, persons liable for payment must complete the final settlement of the CVAE on form No 1329-DEF transmitted before the 2nd working day following 1 May of year n + 1, accompanied Payment of the corresponding balance.
Payment of the CVAE :
The companies owing the CVAE must obligatorily make the payment by electronic means.
Two installments of 50% of the due contribution must be paid, by means of the deposit account no. 1329-AC:
- By 15 June at the latest;
- By 15 September at the latest.
There are no advances (the CVAE is paid in one go), if the amount of the CVAE does not exceed 3 000 €.
The CVAE tele-payment is compulsory for all companies liable to the CVAE.
In the year following the taxation year, the debtor company must proceed with the definitive setttlement of the CVAE on declaration n ° 1329-DEF transmitted dematerialized no later than the 2nd working day following the 1st of the year n +1, accompanied, where appropriate, by the payment of the corresponding balance.
For more information, do not hesitate to contact us.
Cabinet Roche & Cie, Chartered accountant in Lyon, France.
Specialist in non-residents’ taxation.