French authorities tighten regulations for private use of company cars

The French authorities have issued a regulation in May 2015 prohibiting the private use of Swiss company cars in France for French residents. The only exception is for the journey from home to work by the employee, and then only if they have a signed authorisation from their employer for such use. Until now French residents working for a Swiss employer and using a company car were able to use the car for private use as long as they carried in the car an authorisation from their employer, stamped by the French customs.

This new regulation will affect anyone living in France who until now was allowed to use their company car for private use. In order to continue to use the car for personal use, the employee will have to pay French VAT and import duty on the value of the car.

Other property of employer

If you carry with you other items of employer property such as telephone or computer, you should carry with you a copy of the receipt or invoice for the device made out to your employer, to avoid having to pay French VAT and import duties on these items.

For more information, see the following websites:

http://www.frontalier.org/emploi-suisse/1119170/utilisation-privee-du-vehicule-de-fonction-controle-renforce.htm

http://www.frontalier.org/douanes.htm

Fédération des entreprises romandes