French CVAE phase-out 2026-2030: rates, CET cap, calendar

Quick answer. The French CVAE has not been abolished in 2026. Article 62 of Law n° 2025-127 of 14 February 2025 postponed the progressive phase-out by three years, now ending on 1 January 2030. For 2026 and 2027 tax years, the maximum rate stays at 0.28% of value added, and the CET cap based on value added applies at 1.531%.

For more than two years, French political communication suggested that the cotisation sur la valeur ajoutée des entreprises (CVAE) : created by the 2010 reform of the local business tax and codified in articles 1586 ter to 1586 nonies of the French General Tax Code (CGI) : would disappear from 2027. Many CFOs and SME managers had already removed CVAE from their 2026-2028 forecasts, fundraising business plans and M&A valuation models.

The wake-up call was sharp. The Finance Law for 2025 (Law n° 2025-127 of 14 February 2025), in its article 62, postponed by three years the entire phase-out trajectory initially planned. The Finance Law for 2026 confirmed this revised trajectory without amending it. As of 19 May 2026, CVAE is therefore due for 2026 and 2027, at the maintained 2024 rates, and full abolition will only take effect on 1 January 2030.

The costly mistake is to treat CVAE as a tax that has already gone: a business that has announced internally, to its bank or to its investors a saving tied to its disappearance must reframe the message, adjust its cash forecast and re-provision CET in its interim accounts. This article summarises the rule in force today, the official calendar and the management levers to activate before the 2026 balance.

CVAE is, alongside the cotisation foncière des entreprises (CFE), one of the two components of the contribution économique territoriale (CET), which replaced the former taxe professionnelle in 2010. It is due by any individual or legal entity carrying out a non-salaried professional activity on a regular basis in France, with turnover excluding VAT exceeding EUR 500,000 (article 1586 ter CGI).

Four points define the 2026 scope:

• Liability: any company with French turnover above EUR 500,000;
• Tax base: value added produced during the reference period, calculated under article 1586 sexies CGI (turnover plus related income minus consumed purchases, external charges and indirect taxes; personnel costs are not deductible);
• Return: form n° 1330-CVAE-SD, filed in May for calendar-year closings, with annexes for single-establishment companies;
• Payment: two instalments (15 June and 15 September) via form 1329-AC-SD if prior-year CVAE exceeds EUR 1,500, then balance via form n° 1329-DEF-SD on the second business day after 1 May.

For the accounting treatment of instalments, refunds and the 2025 complementary contribution, see our dedicated guide on CVAE accounting.

Two thresholds not to be confused. The filing threshold and the effective payment threshold do not coincide, a frequent source of missed returns.

In practice, a service company with EUR 300,000 of turnover pays no CVAE but must still file form 1330-CVAE-SD. Forgetting it exposes the company to a reminder and a late-filing penalty, even though no tax was due.

Article 62 of Law n° 2025-127 of 14 February 2025 sets the full trajectory. The table below summarises the maximum applicable rates, starting with the 0.28% maintained for 2026 and 2027 (instead of 0.19% then 0.09% initially planned).

Legal source: BOFiP BOI-CVAE-LIQ-10 (published 19 November 2025) and BOI-CVAE-LIQ (19 November 2025).

Freshness note: updated on 19 May 2026.

Consolidated 2026-2030 summary. A single view to steer CET exposure in the forecast, including the CCI additional tax and the cap.

The 2026-2027 cap rate (1.531%) is confirmed on a primary source (Service-Public Entreprendre A18078). The 2028 to 2030 cap rates should be confirmed on the BOFiP and article 1647 B sexies CGI before being locked into a business plan.

The 0.28% maximum rate applies to companies with turnover excluding VAT above EUR 50 million. Below that, the rate is progressive and computed bracket by bracket under the formulas of article 1586 quater CGI. For 2026 and 2027 tax years, the applicable coefficients are as follows:

CVAE is not collected where its annual amount does not exceed EUR 63 (article 1586 septies CGI): this is a non-collection threshold, not a minimum contribution owed by the company. It should not be confused with the EUR 188 additional relief available for 2026 and 2027 to companies with turnover below EUR 2m (article 1586 quater II CGI). On top of CVAE, an additional tax for the benefit of the Chambers of Commerce and Industry (CCI France) is levied at 9.23% for 2026 and 2027 (then 13.84% in 2028 and 27.68% in 2029 to offset the eroded tax base).

The cap on the contribution économique territoriale (CFE + CVAE) based on value added, codified in article 1647 B sexies CGI, is a relief that must be expressly claimed from the French tax administration. It targets companies for which the CET burden represents a disproportionate share of value added. The cap rate follows the same phase-out trajectory.

In practice, two conditions must be met to activate this lever:

1. the sum of CFE plus CVAE due for the year exceeds 1.531% of value added produced;
2. the company files a formal relief claim, together with the value-added calculation, CFE notices and liquidated CVAE, within the statutory complaint deadline, on form n° 1327-CET-SD, i.e. by 31 December of the year following the year in which the CFE tax notice is issued (for example, a 2024 CET cap claim must be filed by 31 December 2025).

The cap does not apply automatically: without a claim, the relief is lost. For multi-establishment companies or groups with high value added, the saving can represent tens of thousands of euros per year.

Article 62 of Law 2025-127 also created, on an exceptional basis and for 2025 only, a complementary contribution to CVAE at the rate of 47.4% of the CVAE due for 2025. It was paid as a single instalment due on 15 September 2025, with reconciliation in May 2026.

This work connects with French corporate tax support, French accounting services and outsourced CFO support. Retail companies can review our commerce and retail page. Power BI can help track CFE, CVAE, value added and cash by establishment.

This contribution does not apply in 2026. However, two attention points remain in 2026 accounts:

• for off-calendar fiscal years (closings between October 2025 and April 2026), the 2025 complementary charge must be correctly accrued and provisioned;
• the reconciliation payment made in May 2026 on the basis of final 2025 liquidation must be identified separately so as not to blur the 2025 / 2026 comparative.

Several situations escape CVAE in 2026, or benefit from partial exemptions. Our CFE 2026 and exemptions guide details the urban free zones and sector mechanisms that also apply to CVAE.

• Micro-entrepreneurs and auto-entrepreneurs: out of CVAE scope as they fall under the micro-fiscal and social regime. CFE may still be due depending on turnover.
• Companies below EUR 500,000 turnover: liable but not taxed (0% effective rate). They must still file form n° 1330-CVAE-SD if taxed under the real regime.
• Real-estate civil companies (SCI) and civil activities: not liable, except where the company has opted for corporate tax and conducts a professional activity in the sense of Conseil d'État case law.
• Urban free zones (ZFU-TE), rural revitalisation zones (ZRR), urban basins to revitalise (BUD): conditional exemptions under the de minimis ceiling.
• Young Innovative Companies (JEI): full exemption for 7 years subject to local council vote, under JEI status conditions.
• Agricultural activities, fishing, residential leasing of unfurnished real estate: excluded from the scope.

In accounting terms, CVAE is treated as a production tax attached to the year for which it is due. The applicable accounting framework (ANC regulation n° 2022-06 on the modernisation of financial statements, applicable to financial years beginning on or after 1 January 2025) leads to recording CVAE in account 63511 (contribution économique territoriale, an operating charge), distinct from account 6951 reserved for corporate tax. The full accounting schema is detailed in our CVAE accounting guide.

In cash terms, the rhythm to integrate into the 2026-2027 plan is:

1. 15 June 2026: first instalment = 50% of CVAE due for 2025 (form 1329-AC-SD);
2. 15 September 2026: second instalment = 50% of CVAE due for 2025;
3. Second business day after 1 May 2027: 2026 final liquidation and balance (1329-DEF-SD);
4. 15 June 2027: first 2027 instalment, recalculated on 2026 CVAE.

Instalments are due only if prior-year CVAE exceeds EUR 1,500. For fast-growing companies that cross the EUR 3m, EUR 10m or EUR 50m turnover thresholds, the lag between instalment (based on N-1) and final liquidation (on N) can trigger a meaningful catch-up effect on the balance : to be anticipated in the cash plan.

Representative example (for illustration only, not a rate schedule). A B2B service SME crosses EUR 3m in turnover in 2026 (up from EUR 2.4m in 2025), with fiscal value added of EUR 1.4m.

• The June and September 2026 instalments are computed on 2025 CVAE (EUR 2.4m base): the cash outflow stays moderate.
• The final 2026 liquidation, in May 2027, is based on the higher actual 2026 value added: a catch-up balance appears.
• If the CET burden exceeds 1.531% of value added, a cap test must be run before closing the accounts.

Amounts depend on each file. This scenario illustrates the lag between the instalment (based on N-1) and the balance (based on N), to anticipate in the cash plan of a growing company.

The CVAE phase-out delay is less anecdotal than it appears. For a Paris-region industrial SME with EUR 12m turnover, keeping the maximum rate at 0.28% in 2026 and 2027 : compared with the initially announced path (0.19% then 0.09%) : represents an extra charge of around EUR 30,000 to EUR 40,000 cumulated over two financial years, excluding the CCI additional tax. For a multi-establishment group at EUR 60m, the cumulated gap can reach EUR 150,000.

Three concrete recommendations for H2 2026:

• immediately re-provision 2026-2027 CET in forecasts and business plans still based on the old trajectory : particularly fundraising decks, exit memos and bank financing files;
• systematically test the CET cap on high-value-added, low-margin companies (intellectual services, consulting, engineering, agencies): the 1.531% threshold is reached faster than expected when payroll is heavy;
• structure per-establishment tracking in multi-site groups or networks: CFE is local, CVAE is allocated between establishments based on headcount and rental values : a Power BI dashboard connected to the accounting system enables monthly monitoring of CET exposure by site.

More broadly, this postponement illustrates a tax-management reality: no tax abolition is acquired until the full calendar has been completed. Building a budget on the assumption that a multi-year reduction path voted into law will unfold without disruption is a risky bet : particularly in a tight budgetary context that weighs on each Finance Law. We share the reading of the French national accounting council: prudence on reduction paths, transparency on assumptions in financial notes.

Hayot Expertise tip. In practice, we recommend that managers keep CVAE as a recurring budget line until end-2029, with a base scenario at 0.28% in 2026-2027 and progressive reduction over 2028-2029. For exposed companies (high value added, low margin), an annual CET cap test should become a closing reflex, on par with the calculation of profit-sharing or the VAT control. That is where the real savings hide.

1. Is CVAE 2026 and 2027 correctly budgeted at 0.28% maximum in the forecast?
2. Does the cash plan include the two instalments of June and September?
3. Has the CET cap been tested on FY 2025 and each following year?
4. Is fiscal value added calculated and documented under article 1586 sexies CGI?
5. Do the business plans presented to banks, investors or buyers reflect the new 2030 trajectory?
6. Does cash reporting clearly separate CFE, CVAE, CCI additional tax, corporate tax, VAT and social charges?

• Do not tell teams that CVAE has already disappeared: internal communication must be recalibrated.
• Check rates against actual turnover, not a start-of-year budget exceeded mid-year.
• Do not forget the 9.23% CCI additional tax, which is added to CVAE and appears on the same notice.
• For multi-establishment companies, check the allocation of value added and headcount between sites (1330-CVAE-SD annex).
• Test the CET cap as soon as the local-tax burden exceeds 1.5% of value added.
• Update M&A, LBO or fundraising financial models : the 2030 trajectory changes post-acquisition forecasts.
• Vigilance on off-calendar fiscal years: the 2025 complementary-contribution reconciliation must be properly provisioned.

Our firm, registered with the French Order of Chartered Accountants (Paris Île-de-France region), covers the full CVAE file: liquidation, instalments, 1330-CVAE-SD return, CET cap, 2026-2030 multi-year simulation and audit support. Depending on your profile, we combine three service lines:

• French corporate tax support for liquidation, CET cap and legal optimisation;
• French accounting services for bookkeeping, review and tax-return production;
• outsourced CFO for startups and SMEs to integrate CVAE into financial steering, budgets and reporting;
• sector support for commerce and retail multi-site companies, particularly exposed to CET.

For more on other 2026 tax measures, see our dossier 2026 Finance Act: key measures for SMEs and the analysis of new tax mechanisms of the 2026 Finance Act. For operational steering, our guide on SME dashboards and KPIs 2026 provides a usable framework.

• CVAE has not been abolished in 2026 or 2027: article 62 of Law 2025-127 postponed the abolition to 1 January 2030.
• The maximum rate stays at 0.28% in 2026 and 2027, before descending to 0.19% in 2028, 0.09% in 2029, then 0% in 2030.
• The CET cap based on value added is set at 1.531% for 2026 and 2027, and remains a lever to actively claim.
• The 47.4% complementary contribution is limited to 2025 and is not renewed.
• The CCI additional tax stands at 9.23% of CVAE in 2026 and 2027.
• CVAE instalments on 15 June and 15 September remain due if prior-year CVAE exceeds EUR 1,500.
• Budgets, business plans and valuation models must be recalibrated on the new trajectory.