Understanding the CVAE: The Business Value-Added Contribution in France
The Cotisation sur la Valeur Ajoutée des Entreprises (CVAE) is one of two local taxes making up the Contribution Économique Territoriale (CET), alongside the Cotisation Foncière des Entreprises (CFE). This tax applies to companies with taxable activities under the CFE and whose turnover exceeds a certain threshold. Here’s what you need to know about how the CVAE works, who it affects, how it is calculated, declared, and paid—and what’s changing in 2025.
What is the CVAE?
The CVAE is a local tax based on the value added by a business during a specific fiscal year. As one of the two components of the CET, it is designed to support local public services and infrastructure through business contributions.
The government has announced that the CVAE will be gradually phased out by 2030. Initially planned for 2027, its removal has been delayed as part of the 2025 Finance Law. In the meantime, rates will be adjusted incrementally, with an additional surcharge introduced in 2025.
Who Is Liable for the CVAE?
Businesses and individuals operating a professional activity in France that is subject to the CFE—and whose annual turnover (excluding tax) exceeds €500,000—are liable to pay the CVAE. This applies regardless of legal structure, business activity, or tax regime.
However, all entities generating over €152,500 in annual revenue are required to submit a value-added and employee count declaration, even if they are not required to pay the CVAE.
Note: Newly established businesses are exempt during their first year, unless they are the result of a business transfer or continuation.
How Is the CVAE Calculated?
The amount owed is based on the following formula:
Taxable value added × Applicable CVAE rate
The CVAE rate depends on the company’s turnover and follows a progressive scale. Below are the 2025 rates:
| Turnover (excl. VAT) | Effective 2025 CVAE Rate |
|---|---|
| Less than €500,000 | 0% |
| €500,000 – €3 million | 0.063% × (turnover – €500,000) / €2.5 million |
| €3 million – €10 million | 0.063% + 0.113% × (turnover – €3 million) / €7 million |
| €10 million – €50 million | 0.175% + 0.013% × (turnover – €10 million) / €40 million |
| Over €50 million | 0.19% |
Rates will rise slightly in 2026 and 2027, as specified in Article 62 of the 2025 Finance Law.
Additional Surcharges
In addition to the main CVAE tax, a supplementary charge of 13.84% of the CVAE amount is levied in 2025. This surcharge supports regional chambers of commerce and industry.
The surcharge will gradually decrease and be eliminated by 2030 along with the CVAE.
Certain categories of businesses are exempt, including:
Registered artisans not listed on local chamber electoral rolls
Agricultural cooperatives and SICA entities
Artisanal fishing companies
Property rental businesses
Private school administrators and boarding school operators
What’s New in 2025?
For 2025, a complementary contribution of 47.4% of the CVAE is introduced for those liable. Payment of this additional charge must be made in full as a single installment by September 15, 2025.
How to Declare the CVAE
All businesses exceeding €152,500 in annual turnover must submit the Form No. 1330-CVAE electronically by the second working day after May 1, following the tax year.
Additionally, those with revenue above €500,000 must also file Form No. 1329-DEF to finalize the CVAE calculation and payment. For the 2024 tax year, the filing deadline is May 3, 2025.
Special cases require declarations within 60 days of events such as:
Ceasing operations during the year
Initiation of legal proceedings (e.g., bankruptcy)
Universal transfer of business assets
How to Pay the CVAE
Payment methods depend on the total CVAE owed:
If under €1,500: Pay in a single transaction via direct online payment
If €1,500 or more: Two equal installments by June 15 and September 15 of the same year, both by electronic payment
Businesses can manage their payments through their online professional account on impots.gouv.fr.
