Legal status and taxation of a taxi driver in 2026

A taxi driver's status is chosen between a sole proprietorship (micro-BIC or actual-profit regime), an EURL and a SASU. Profits are taxed as industrial and commercial profits (BIC) at income tax for the sole proprietorship and the income-tax EURL, and at corporate tax for a company under corporate tax. The choice depends on income, vehicle financing and the VAT to recover.

The trade stays specific: you operate a parking authorisation (ADS), under article L3121-2 of the Transport Code, and you carry passengers for consideration. This commercial activity drives the tax regime (BIC), the VAT rate and, a point often missed, a right to deduct VAT on the vehicle that most businesses do not have. Here is how we reason in creation files.

The sole proprietorship is the simplest route to start. Two regimes coexist.

The micro-BIC applies a flat-rate allowance on revenue: no accrual accounting, and no VAT to manage if you stay below the exemption thresholds. In return, you deduct no actual expense (fuel, insurance, maintenance, vehicle financing) and you do not recover VAT. For a taxi financing a recent vehicle and driving heavily, the flat-rate allowance is almost always below the expenses actually borne.

The actual-profit BIC regime opens the deduction of all expenses and, above all, VAT recovery, including on the purchase of the vehicle. This is the regime we recommend as soon as there is a vehicle to finance.

Beyond the sole proprietorship, two single-member companies come up often.

The EURL is taxed as BIC at income tax by default, with an option for corporate tax. The sole shareholder-manager is a self-employed worker (TNS).

The SASU is under corporate tax. The president is treated as an employee: broader social cover, but heavier contributions. Pay falls under salaries; dividends bear the single flat-rate levy of 31.4%.

Under corporate tax, profit is taxed at 15% up to 42,500 euros, then 25% above (subject to conditions on turnover and capital ownership). A company is genuinely worthwhile when the ADS has value, when you want to steer your pay, or to prepare a transfer.

Taxi rides fall under the reduced 10% VAT rate (article 279, b quater of the General Tax Code), as passenger transport.

The real lever sits on the vehicle. As a rule, VAT on passenger cars is not deductible. The taxi enjoys an exception: as a public individual passenger transport activity, VAT on the vehicle purchase is deductible, provided exclusive allocation and the status of a liable taxable person (BOFiP BOI-TVA-DED-30-30-20). This is a strong argument for an actual-profit regime over the micro regime.

To this is added the partial refund of the fuel excise (formerly TICPE), now handled by the DGFiP via form 3310-TIC. It is a recurring cash flow to factor into the forecast.

The director's social status changes the picture.

As a sole trader or EURL manager, you are TNS: contributions of about 45% of your pay, decent cover but lighter, notably on pension and provident benefits.

In a SASU, the president is treated as an employee: better cover, but markedly higher social charges. The underrated risk lies here: without pay, the employee-treated president contributes nothing and acquires no rights. The pay-versus-dividend trade-off must therefore be framed from the start.

Our decision logic:

• Cautious start, few expenses, no vehicle to finance: sole proprietorship under micro-BIC.
• Vehicle to finance and VAT to recover: sole proprietorship under actual profit or a company.
• Valuable ADS, need for social cover or a transfer plan: EURL or SASU.

Checklist before you start#

• Quantify your annual revenue and actual expenses (fuel, insurance, financing).
• Estimate the value of the ADS and how it is acquired.
• Decide whether you recover VAT on the vehicle (actual regime or company).
• Weigh the need for social cover (TNS or employee-treated).
• Anticipate the fuel excise refund in your cash flow.
• Frame your pay before registration.

The right status is not universal: it depends on your target income, the value of your ADS and your transfer horizon. For an analysis suited to your situation and the tax framework of the trade, our dedicated support for taxi drivers sets out the accounting obligations and the levers specific to the sector. This article informs; a decision specific to your file requires reviewing your situation and the law in force.