Question 12520 — value added tax

Summary

Mr. Laurent Marcangeli draws the attention of the Minister of the Economy, Finance and Industrial, Energy and Digital Sovereignty to the VAT regime applicable to the provision by a company of company vehicles to its employees. In a judgment of January 20, 2021 (case C-288/19, QM c/ Finanzamt Saarbrücken), the CJEU recalled that the provision of a vehicle by the employer to its employee constitutes a service of services for consideration when it gives rise to consideration. In application of this case law, a rescript published in BOFiP on April 30, 2025 (BOI-RES-TVA-000161) specifies that the provision of a vehicle is subject to VAT when consideration is stipulated between the company and the employee. Correlatively, the VAT charged on the acquisition or rental of the vehicle is fully deductible. The aforementioned ruling adds that, in accordance with the principles established by the CJEU, consideration exists in particular (i) in the case of deduction from gross or net salary, (ii) in the case of deduction from salary accompanied by the use of a points credit convertible into additional salary and (iii) in return for a sum allocated by the employer convertible into additional remuneration. For the record, following on from the CJEU QM judgment, which followed a German preliminary question, the German Federal Court of Finance (Bundesfinanzhof, judgment of June 30, 2022, V R 25/21) ruled that the provision of a vehicle to an employee constitutes a service for consideration, since it is analyzed as an exchange: the consideration for this provision may be constituted by the work of the employee, provided that this consideration in kind is contractually provided for, that it is recoverable and that it has a direct link with the benefit granted. In France, companies highly value the provision of a company vehicle to their employees on the basis of a salary amount determined according to the rules applicable to benefits in kind in terms of social security contributions, whether the flat-rate method or the actual method. This amount, reported at the top of the bulletin payroll, constitutes an element of the gross remuneration agreed with the employee, valuing the work carried out in return for the provision of a vehicle. On an economic level, this allocation of part of the gross remuneration, contractually agreed, produces the same effects as a contribution deducted from the employee's net salary at the bottom of the pay slip. In this context, he asks him to please clarify that the provision of a company vehicle to an employee must be considered as made for consideration as long as it gives rise to a valuation on the pay slip giving rise to a deduction from the gross salary or a reduction thereof, this contribution being valued, where applicable, according to the rules applicable to benefits in kind in terms of social security contributions and directly linked to the use of the vehicle. He asks him to please specify that this valuation, agreed between the parties, constitutes the VAT tax base for the operation of making the vehicle available to the employee since this is not, in practice, a symbolic amount. Finally, he asks him to clarify that this situation is distinct from that of a non-employee manager who would have a vehicle without any compensation being stipulated. contractually or identifiable between the manager and the company, a situation in which the benefit in kind is then only evaluated for income tax purposes, without giving rise to an identifiable consideration.

Machine translation from French. The official text remains authoritative.

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