In professional activity, all independent professionals are subject to taxes. The case of VTC drivers (vehicle of transport/tourism with driver) is no exception to the rule. Therefore, professionals in this profession must inform themselves about the taxation applicable to them to avoid any disappointment with the law. Here is an overview of all the taxes to which such a driver is subject!
The VAT: the value-added tax
This is an indirect consumption tax. It is called indirect because it is not a tax you pay directly but rather a daily tax you pay when you consume or buy something.
The most important thing to remember here is that VAT does not apply to all transport and tourism vehicle drivers. Indeed, only a part of them is confronted with this tax because of a particular regime. It is one of the auto entrepreneurs. In fact, a distinction must be made between the different types of VTC drivers. Some practice under the legal form of auto entrepreneurs, and some practice this profession under the form of a company. The first category is exempt from VAT. This is the reason why they are not subject to this tax.
As for the VTC drivers operating as a company, it should be noted that they are subject to a VAT rate of 10%. This is a relatively high percentage, as it relates to the transportation of people.
The TVS: The Tax on Company Vehicles
This tax is quite particular. In France, in principle, all companies are subject to this tax on all registered cars they own. These are private vehicles or cars for multiple uses. VTC drivers are obliged to use a specific car category, which is why they are subject to this tax.
However, it should be noted that they benefit from a permanent exemption from the application of this tax. Indeed, according to the General Tax Code, vehicles used for the exclusive transportation of people are exempt from this type of tax.
The CFE: The Property Tax of Companies
When you are a VTC driver, you are obliged to pay this tax. It is an essential tax to pay in the context of your profession. However, it should be noted that specific categories of drivers can benefit from an exemption from this tax under certain conditions. First, they must own at least one or two cars they drive. They must also manage them and not be in service at the same time. In principle, each of them must not have more than seven seats. Finally, the VTC driver benefits from an exemption if the person’s transport conditions follow the standard or regulatory tariff.
As you can imagine, this type of tax concerns the income received by a company. As stated above, there are two different forms of VTC driver activity. We must distinguish between drivers working as auto entrepreneurs and those working as companies. The first category is not concerned with this tax but is nevertheless subject to income tax.
This company tax is therefore compulsory for drivers who work under the status of a company. Therefore, a tax return will have to be filed to comply with the requirements of the Code.
Finally, it is essential to note that the applicable taxes differ depending on the status of the drivers. In addition to those mentioned above, it is also possible to distinguish the tax on the territorial economic contribution.