Passenger transport: who's affected?
First of all, we need to distinguish between two types of transport company: goods transport and passenger transport. In the transport sector, passenger transport has been growing steadily, especially since the rise of applications that put drivers in touch with private individuals.
The passenger transport professions are diverse and exist in several legal forms. The VTC drivers, cab drivers or even LOTI fall into this category.
VTCs
VTCs (Véhicule de Tourisme avec Chauffeur) are a specific category of passenger transport. VTCs generally work with ride-hailing apps such as Uber, Marcel or Heetch) to enable individuals or companies to travel.
To become a VTC driver, you need to undergo training and obtain a VTC card following an examination organized by the CMA (Chambre des Métiers de l'Artisanat). You then need to obtain a VTC card, which allows you to start working. This is done at your local prefecture.
There are several legal forms for VTC drivers:
- Autoentreprise
- SASU
- SARL and EURL
If you'd like to find out more about VTC status, we recommend reading our resources.
Find out more - Electric vehicles for VTCs: the complete guide
LOTI capacity-builders
To become a LOTI driver (Loi d'Orientation des Transports Intérieurs published on December 30, 1982), you need to have a transport licence.
The rules vary according to the size of your vehicle:
- If the vehicle you're driving has more than 9 seats, you'll be in the heavy transport category, and you'll have to take a test organized by your region.
- If the vehicle you're driving has more than 9 seats, you'll be in the light transport category: you'll need to take a compulsory 100-hour training course and pass the test.
Specific features of the status :
- the LOTI operator provides an occasional service and works with travel agencies, tour operators or private individuals for one-off trips.
- It is not permitted to park on the public highway.
- Its services are provided only on request.
- Prohibition on loading less than two people
Good to know: since the Grandguillaume law of 2018, it's no longer possible to register on VTC platforms if you're a LOTI capacitaire. You'll need to obtain a VTC card to start working.
Cabs
The cab profession is regulated. To work as a cab driver, you need to obtain a professional cab card. How do you do this? By passing the "certificat de capacité professionnelle" exam organized by the prefecture.
There are several types of legal status for cabs:
- independent cab driver
- salaried cab driver
- EURL
- SASU
Find out more - [GUIDE] Electric cabs: how to make the switch to electric?
Taxation of passenger transport vehicles: what are the specifics?
All the professions studied above benefit from a specific automotive tax system.
VAT on passenger transport vehicles
In practice, companies do not recover VAT on the purchase of a company vehicle. However, passenger transport companies can reclaim all the VAT charged on the purchase of their vehicle.
- If the vehicle has been purchased with cash or leased: VAT is recoverable in the year of purchase.
- If the vehicle has been leased: VAT is recoverable every month
As a passenger transport company, you are not subject to the tax on the use of passenger vehicles for economic purposes.
In theory, any company owning a passenger car is subject to this tax. However, as a passenger transport operator, you won't have to pay it. This exemption is only possible if the vehicle is 100% dedicated to passenger transport.
Depreciation of passenger transport vehicles
From an accounting point of view, depreciation of passenger transport vehicles works in the same way as for a business. However, you will not be subject to any specific depreciation schedule. You can depreciate the full purchase value of the vehicle.
Depreciation takes place over 4 or 5 years. Cabs can be depreciated over 3 years.
That's it! You now know everything there is to know about the taxation of passenger transport vehicles. Don't hesitate to send us your questions at [email protected] if you have any specific questions.
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