Can a foreign company be liable for the contribution on business value added (CVAE) ?

The contribution on business value added (CVAE) and the business premises contribution (CFE) form the two parts of the local economic contribution (CET).

According to legal provisions, individuals and legal entities whose business activity is liable for the CFE and whose turnover is greater than €152,000 are liable for the CVAE.

Nevertheless, companies whose turnover is less than €500,000 and which are not members of a consolidated tax group (subject to certain conditions) are fully exempt from this contribution, and are thus not liable for the CVAE.

The CVAE is a self-assessed tax. It must be paid by any taxpayer that exercises a business activity as of 1 January of the tax year.

Online filing and payment of the CVAE are mandatory for all businesses that are liable, i.e. those whose turnover is greater than €500,000. They can file their return using either the EFI or the EDI procedures.

A foreign company can be liable for the CVAE.

Updated DINR PRO