In 2023, taxation applicable to thermal vehicles continues to toughen. And, at the same time, incentives to convert to less polluting vehicles are being reduced.
Below is a non-exhaustive summary of the main developments to keep in mind.
If you change your vehicle with a Crit’Air rating of 3 or higher and scrap it, you can still benefit from the conversion grant.
Eligible for the conversion grant are:
- New or second-hand vehicles at selling prices less than €47,000 including VAT and a maximum kerb weight of 2.4 metric tons
- Purchase or lease of more than two years
- Low pollution individual vehicles or small vans
- Retrofitted vehicles
|New, light, electric utility vehicle, hydrogen or hybrid as exclusive source of energy||€2,500|
As of July 1, 2022, Crit’Air 2 vehicles emitting more than 127 g/km of CO2
are no longer eligible for the grant.
A new conversion grant is planned for vans emitting less than 20 grams of CO2 per kilometer. Its amount corresponds to 40% of the purchase price, capped between €5,000 and €9,000 depending on the weight of the vehicle.
From January 1, 2023, the ecological grant applies solely to individual vehicles which:
- are electric or hydrogen powered (hybrid rechargeable vehicles are no longer eligible)
- have a purchase price of less than €47,000 including VAT (including, as appropriate, the cost of acquiring or leasing the battery)
- with a kurb weight of less than 2.4 metric tons
It is set at 27% of the purchase price including VAT increased, as appropriate by the price of leasing the battery, with a cap set at €3,000.
For vehicles that have undergone EU certification, the penalty is now triggered once the vehicle’s emissions reach 123 grams of CO2 per kilometer, as specified in this table.
It is now capped at €50,000 for vehicles with CO2 emissions exceeding 226 g/km, but not exceeding 50% of the purchase price of the vehicle.
The weight penalty
Applicable to vehicles registered since 2022, this penalty relates to vehicles of 1,800 kg or more, except for models with exclusively, hydrogen or combined power drives.
The amount of the penalty is €10 per extra kilo, but its accumulation with the CO2 penalty must not exceed the total amount of €50,000.
When the vehicle is acquired by a company or a legal entity and has at least 8 seats, the weight penalty starts at 2,200 kg.
Benefits in kind
The exclusion of electricity costs from the calculation of the benefits in kind related to electric vehicles, as well as the 50% tax relief on this benefit in kind (limited to €1,800 per year) has been extended out to December 2024.
Pour les Taxes sur l’affectation des véhicules de tourisme à des fins économiques (ex-TVS) : Articles L 421-93 et suivants du CIBS
Pour le Bonus écologique 2023 : Décret no 2022-1761 du 30 décembre 2022 relatif aux aides à l’acquisition ou à la location de véhicules peu polluants, qui modifie les articles D 251-1 à D 251-9 du Code de l’Energie
Pour le Malus écologique 2023 : Art L 421-58 à art L 421-70 du Code des Impositions sur les Biens et Services
Pour l’Amortissement non déductible : Loi 2019-1479 du 28-12-2019 art. 69 ; Décret 2020-169 du 27-2-2020
Pour les Avantages en Nature : Site du BOSS, chapitre 4 sur les Avantages en Nature