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Passenger transport: who is affected?
First of all, there are 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, taxi drivers and LOTI operators fall into this category.
VTC
VTCs (Véhicule de Tourisme avec Chauffeur) are a specific category of passenger transport. VTCs generally work with ride-hailing applications 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 organised 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:
- Self-employed
- SASU
- SARL and EURL
If you would like to find out more about the status of VTC, we recommend that you read our resources.
Find out more - Electric vehicles for VTCs: the complete guide
LOTI capacity holders
To become a LOTI driver (Loi d'Orientation des Transports Intérieurs published on 30 December 1982), you need to have a transport licence.
The rules vary according to the size of your vehicle:
- If the vehicle you are driving has more than 9 seats, you will be classed as a heavy goods vehicle and will have to take a test organised by your region.
- If the vehicle you're driving has more than 9 seats, you'll be in the light transport category: you'll have to undergo around 100 hours of compulsory training and pass the test.
Specific features of the status :
- LOTI operators provide an occasional service and work with travel agencies, tour operators or private individuals for one-off journeys.
- It is not permitted to park on the public highway
- Its services are only provided on request
- Prohibition on loading less than two people
Good to know: since the Grandguillaume law of 2018, it is no longer possible to register on VTC platforms if you are a LOTI licensed driver. You will need to obtain a VTC card to start working.
Taxis
The taxi profession is regulated. To work as a taxi driver, you need to obtain a professional taxi card. How do you do this? By passing the professional competence certificate examination organised by the prefecture.
There are several legal forms for taxis:
- self-employed taxi driver
- salaried taxi driver
- EURL
- SASU
Find out more - [GUIDE] Electric taxis: how to make a successful switch to electric?
Taxation of passenger transport vehicles: what are the specifics?
All the professions studied above benefit from a taxation specific car.
VAT on passenger transport vehicles
In practice, companies do not reclaim VAT on the purchase of a company car. However, passenger transport companies can reclaim all the VAT charged on the purchase of their vehicle.
- If the vehicle has been acquired by cash purchase or leasing: VAT is recoverable in the year of purchase.
- If the vehicle has been leased: VAT is recoverable on a monthly basis
As a passenger transport company, you are not subject to tax on the use of private cars for economic purposes.
In theory, any company owning a private car is subject to this tax. However, given that you are in the passenger transport business, you will not 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 depreciation bands. You can write off the full purchase value of the vehicle.
The vehicle is depreciated over 4 or 5 years. For taxis, it is possible to depreciate the vehicle over 3 years.
For more information, we've put together a guide to this topic to explore the different aspects in depth:
Read our article about :
This is it! You know all about taxation passenger transport vehicles. Don't hesitate to send us your questions on [email protected] if you would like to find out more about a specific subject.
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