TLDR: Co-consumption activities in France benefit from a tax-exempt regime if they meet two main criteria: active participation by the provider and compliance with direct costs. Individuals can benefit from this, but not legal entities or those engaged in professional activities.
Exemption conditions
To qualify for tax exemption, co-consumption activities must meet two cumulative conditions:
- Active participation by the provider: The provider must also benefit from the activity. For example, in carpooling, the driver must also be a passenger.
- Compliance with direct costs: The amounts requested must not exceed the share of direct costs incurred, excluding the provider's share.
If either of these conditions is not met, the income becomes taxable under standard rules.
Who can benefit from the exemption?
The tax exemption for co-consumption activities applies only to individuals who share expenses as part of activities in which they actively participate. For example, a motorist offering a carpool and requesting a contribution for fuel and tolls benefits from the advantageous regime, provided they do not make a profit and participate in the trip as a passenger.
However, the following are not eligible for the exemption:
- Legal entities (companies, associations with economic activity).
- Those who carry out the activity in a professional or entrepreneurial manner, even occasionally.
- Those who request amounts that exceed the direct costs incurred (including any profit margin).
Activities excluded from the co-consumption regime
Not all sharing activities fall under the advantageous regime. The following are expressly excluded:
- Professional services, even occasional (e.g., a chef organizing paid dinners for strangers).
- Activities carried out by legal entities (e.g., a company renting boats).
- Public or commercial transport, even organized between individuals (e.g., a bus rented with fixed schedules).
- Situations where the provider does not participate in the activity (e.g., renting an apartment without living there).
In these cases, income is taxable under ordinary rules (income tax, VAT if applicable, etc.). Platforms must report these transactions if they exceed the prescribed thresholds.
Documentation and evidence to retain
No specific declaration is required to benefit from the exemption, but it is advisable to keep evidence demonstrating:
- The shared nature of the activity.
- The calculation of direct costs and their allocation.
In the event of an audit, the tax authorities may request these documents to verify that:
- There was no profit (amount received = shared costs).
- The provider actually participated in the activity (e.g., was present during the trip or meal).
There are no predefined forms for this documentation: clear and traceable supporting documents are sufficient.
Differences from other sharing economy activities
Co-consumption differs from other sharing economy activities in two key ways:
- No profit motive: In co-consumption, the goal is to share costs, not generate profit. For example, splitting a taxi fare with friends is co-consumption; offering paid rides as a service is an entrepreneurial activity.
- Joint participation: The provider must benefit from the service alongside others. Renting out a room in one’s home while living in another part of the property is not co-consumption (this falls under the furnished rental regime).
These differences are crucial in determining whether an activity is exempt or taxable.