CVAE 2026: Rates, Calculation, Declaration and Payment in France
The Cotisation sur la Valeur Ajoutée des Entreprises (CVAE) is one of the two components of the Contribution Économique Territoriale (CET), alongside the Cotisation Foncière des Entreprises (CFE).
The CVAE is a local business tax based on the value added generated by a company. It concerns businesses carrying out an activity subject to the CFE and whose turnover reaches the applicable threshold.
The rules surrounding the CVAE have changed significantly in recent years. Although its abolition was initially planned for 2027, the 2025 Finance Law postponed the complete removal of the CVAE until 2030. The tax rates therefore remain applicable in 2026 and 2027 before being progressively reduced in 2028 and 2029.
This guide explains who pays CVAE in 2026, the applicable rates, how the tax is calculated, how to declare it and when it must be paid.
What Is the CVAE?
The CVAE (Cotisation sur la Valeur Ajoutée des Entreprises) is a French local tax calculated according to the value added produced by a business during the relevant reference period.
It forms part of the Contribution Économique Territoriale (CET), which consists of:
- CFE (Cotisation Foncière des Entreprises);
- CVAE (Cotisation sur la Valeur Ajoutée des Entreprises).
The basic principle is:
CVAE = taxable value added × applicable CVAE rate
The rate depends primarily on the company’s turnover excluding VAT.
The CVAE is being progressively phased out. Under the current timetable, the maximum rate is 0.28% in 2026 and 2027, falls to 0.19% in 2028, then to 0.09% in 2029, before the CVAE is completely eliminated in 2030.
Who Is Liable for CVAE in 2026?
The CVAE concerns businesses and individuals carrying out a professional activity in France that are subject to CFE, subject to the applicable turnover conditions and exemptions.
There are two important thresholds to distinguish.
Turnover Above €152,500
Businesses whose turnover exceeds €152,500 excluding VAT are generally subject to CVAE reporting obligations.
However, exceeding €152,500 does not automatically mean that the business has CVAE to pay.
Businesses between €152,500 and €500,000 of turnover can therefore have a reporting obligation while benefiting from a 0% CVAE rate.
Turnover Above €500,000
Businesses with turnover exceeding €500,000 excluding VAT are liable for CVAE, subject to applicable exemptions, because the applicable rate becomes greater than zero.
The rules apply regardless of the company’s legal structure or tax regime, provided the conditions for liability are satisfied.
What About Newly Created Businesses?
A newly established business is generally not subject to CVAE for the year in which it is created, unless the activity results from a transfer or continuation of an existing activity under the applicable rules.
CVAE Rates in 2026
One of the most important updates for 2026 concerns the CVAE rates.
For 2026 and 2027, the effective rates are as follows:
| Turnover excluding VAT | Effective CVAE rate in 2026 and 2027 |
|---|---|
| Less than €500,000 | 0% |
| €500,000 to €3 million | 0.094% × (turnover − €500,000) / €2.5 million |
| €3 million to €10 million | 0.094% + 0.169% × (turnover − €3 million) / €7 million |
| €10 million to €50 million | 0.263% + 0.019% × (turnover − €10 million) / €40 million |
| More than €50 million | 0.28% |
These rates apply to the CVAE due for 2026 and 2027.
Example
A company generating more than €50 million in turnover is subject to the maximum CVAE rate of 0.28% of its taxable value added in 2026.
For companies with turnover between €500,000 and €50 million, the rate is progressively determined according to turnover.
Therefore, the 0.28% rate is not applied to every company whose turnover exceeds €500,000.
CVAE: The 2026–2030 Phase-Out Schedule
The CVAE is not disappearing immediately.
The current schedule is:
| Tax year | Maximum CVAE rate |
|---|---|
| 2025 | 0.19% |
| 2026 | 0.28% |
| 2027 | 0.28% |
| 2028 | 0.19% |
| 2029 | 0.09% |
| 2030 | CVAE abolished |
The 2026 and 2027 rates were maintained at the previous level as part of the revised phase-out timetable introduced by the 2025 Finance Law.
This means that businesses should not assume that the CVAE disappears in 2027. The current legislation extends its existence through 2029, with complete abolition scheduled for 2030.
What Was the 47.4% Complementary Contribution?
The original CVAE rules for 2025 included an important temporary measure that should not be confused with the rules applicable in 2026.
For 2025 only, a temporary complementary contribution equal to 47.4% of the CVAE was introduced.
Its purpose was to compensate, in part, for the reduction in the headline CVAE rate applicable in 2025.
This 47.4% complementary contribution was specific to 2025. It is not a recurring CVAE surcharge for 2026.
Therefore, an article published in 2026 should not present the 47.4% contribution as a current 2026 charge.
Additional Tax for Chambers of Commerce
A separate tax additional to the CVAE is collected for the benefit of the Chambers of Commerce and Industry.
For 2026, this additional tax is 9.23% of the CVAE amount.
The applicable rate is scheduled to change during the remaining CVAE phase-out period:
| Year | Additional tax rate |
|---|---|
| 2025 | 13.84% |
| 2026 | 9.23% |
| 2027 | 9.23% |
| 2028 | 13.84% |
| 2029 | 27.68% |
| 2030 | CVAE abolished |
The rates are established by the relevant legislation and are intended to evolve alongside the gradual disappearance of the CVAE.
Which Businesses Can Be Exempt from CVAE?
Certain businesses can benefit from exemptions from the CVAE.
In particular, exemptions applicable to the CFE can, under the relevant conditions, also apply to the CVAE.
Depending on the circumstances, exemptions can concern activities such as:
- certain agricultural activities;
- certain artisanal activities;
- certain fishing activities;
- specific rental activities;
- certain educational establishments; and
- activities benefiting from specific statutory or locally applicable exemptions.
The exact conditions depend on the nature of the activity and the applicable exemption.
It is therefore important to verify the CFE exemption rules applicable to the business rather than assuming that every business with turnover above the threshold automatically pays CVAE.
How Is the CVAE Calculated?
The calculation can be summarized as:
Taxable value added × applicable CVAE rate
The taxable value added is determined according to specific tax rules and the company’s accounting information.
The company’s turnover determines the applicable rate, while the value added determines the amount on which that rate is applied.
For example, two companies with the same turnover may not necessarily have the same CVAE because their taxable value added can differ.
The calculation is therefore not simply:
Turnover × CVAE rate
Instead, the principal mechanism is:
Taxable value added × CVAE rate
How to Declare the CVAE
Businesses exceeding €152,500 in turnover excluding VAT generally have a CVAE reporting obligation.
The principal declaration is:
Form No. 1330-CVAE-SD
This form reports information including:
- turnover;
- value added;
- employee information;
- information needed to determine the CVAE.
The declaration must generally be submitted electronically by the second working day following 1 May of the year following the tax year.
For the 2025 CVAE, the 2026 deadline was 5 May 2026, with the additional 15-calendar-day period applicable to users of the relevant electronic procedures.
Important Exception for Certain Single-Establishment Businesses
Certain businesses with a single establishment can be exempt from filing the separate 1330-CVAE form if they satisfy the applicable conditions and report the required CVAE information directly in their tax return.
The exact rules depend on the company’s tax regime and situation.
Form 1329-DEF: CVAE Liquidation and Payment
Businesses that are actually liable for CVAE must also use Form 1329-DEF for the liquidation and regularization of the tax.
Businesses with turnover exceeding €500,000 excluding VAT are generally required to file this declaration.
For the 2025 CVAE, the 1329-DEF declaration and corresponding balance were due in 2026, with the deadline set at 5 May 2026.
The form is submitted electronically and is used to determine the final amount of CVAE due after taking into account any payments already made.
When Must CVAE Be Paid?
The payment schedule depends on the amount of CVAE concerned.
CVAE of €1,500 or Less
If the CVAE due is €1,500 or less, the tax is generally paid in one payment through the company’s online tax account.
CVAE Above €1,500
When the applicable conditions are met and the CVAE exceeds €1,500, payment is made through two equal instalments:
- 50% by 15 June of the tax year;
- 50% by 15 September of the tax year.
The payments are made electronically.
For 2026, businesses concerned therefore have CVAE instalments due in June and September 2026.
Special 60-Day Declaration Deadlines
Certain events trigger special CVAE filing deadlines.
A declaration may need to be submitted within 60 days following events such as:
- cessation of activity during the year;
- the opening of certain collective insolvency proceedings;
- a universal transfer of assets.
Special rules can apply where a collective proceeding is opened but the business continues operating.
Because these situations can have significant tax consequences, companies should not simply wait for the normal annual filing deadline.
CVAE and the CET Ceiling
The CVAE is part of the Contribution Économique Territoriale (CET) together with the CFE.
A company may be entitled, under certain conditions, to a plafonnement de la CET en fonction de la valeur ajoutée, commonly referred to as the PVA mechanism.
For 2026 and 2027, the applicable ceiling is 1.531% of the company’s value added.
The schedule then changes as follows:
| Year | CET ceiling based on value added |
|---|---|
| 2025 | 1.438% |
| 2026 | 1.531% |
| 2027 | 1.531% |
| 2028 | 1.438% |
| 2029 | 1.344% |
| 2030 | 1.25% — applying to CFE after CVAE abolition |
This mechanism is separate from the calculation of the CVAE itself and operates through a potential tax reduction or refund mechanism under the applicable conditions.
What Changes for Businesses in 2026?
The main points to remember for CVAE 2026 are:
1. The CVAE has not been abolished
The previous plan to eliminate it by 2027 has been postponed.
The current timetable provides for complete abolition in 2030.
2. The 2026 rates are higher than the 2025 headline rate
The maximum CVAE rate is 0.28% in 2026 and 2027, compared with 0.19% for 2025.
3. The 47.4% complementary contribution was temporary
The 47.4% contribution applied only to 2025 and should not be presented as a 2026 CVAE surcharge.
4. The additional CCI tax is 9.23% in 2026
This additional tax is calculated on the CVAE amount and is separate from the main CVAE rate.
5. The €152,500 threshold remains important
Exceeding €152,500 in turnover generally triggers the CVAE reporting obligation, while the €500,000 threshold is important for determining whether CVAE is actually payable at a rate above 0%.
CVAE 2026: Key Figures at a Glance
| Item | 2026 rule |
|---|---|
| CVAE reporting threshold | €152,500 turnover excluding VAT |
| Threshold above which CVAE becomes payable | €500,000 turnover excluding VAT |
| Maximum CVAE rate | 0.28% |
| Additional CCI tax | 9.23% of CVAE |
| First payment instalment | 15 June 2026 |
| Second payment instalment | 15 September 2026 |
| 2025 CVAE balance/declaration deadline in 2026 | 5 May 2026 |
| CVAE abolition | 2030 |
Frequently Asked Questions About CVAE
Is CVAE still payable in 2026?
Yes. The CVAE remains applicable in 2026. Its abolition has been postponed until 2030.
What is the CVAE threshold in 2026?
The €152,500 turnover threshold is important for CVAE reporting obligations. However, CVAE is generally payable only when turnover exceeds €500,000, subject to applicable exemptions.
What is the CVAE rate in 2026?
For 2026 and 2027, the maximum rate is 0.28%, with progressive rates applying to businesses whose turnover is between €500,000 and €50 million.
Is the 47.4% CVAE surcharge applicable in 2026?
No. The 47.4% complementary contribution was a temporary measure for 2025 only. It should not be added to the 2026 CVAE calculation.
When is CVAE paid in 2026?
Where the applicable payment conditions are met, the two instalments are due by 15 June 2026 and 15 September 2026.
When will the CVAE disappear?
Under the current legislation, the CVAE is scheduled to be completely abolished in 2030, following progressive rate reductions in 2028 and 2029.
What is the difference between CFE and CVAE?
Both taxes form part of the CET.
The CFE is primarily based on the rental value of business premises and certain other elements, while the CVAE is calculated based on the value added produced by the business.
A company can therefore be liable for both CFE and CVAE.
Conclusion
The CVAE remains an important French business tax in 2026, particularly for companies with significant turnover.
Although the government continues to pursue its gradual abolition, the tax has not disappeared. The current schedule keeps the CVAE in place through 2029, with complete abolition planned for 2030.
For 2026, the maximum CVAE rate is 0.28%, the additional tax benefiting the Chambers of Commerce is 9.23% of the CVAE, and the 47.4% complementary contribution applies only to 2025, not 2026.
Businesses should also distinguish carefully between the €152,500 reporting threshold and the €500,000 threshold relevant to actual CVAE liability.
Because CVAE calculations involve turnover, taxable value added, declarations, instalments and possible exemptions or reliefs, companies with significant French operations should ensure that their tax filings are prepared accurately and on time.
