The compulsory voluntary contribution: CVO

April 5, 2018

The CVO contribution is a contribution paid by forest owners and primary processing operators in the forestry sector (sawing and veneering) to fund measures of common interest that will benefit the entire forest sector.

This contribution is just one of several tax liabilities applicable to the sector.

It came into force on September 1st, 2005.

The contribution is deemed ‘voluntary’ as it was suggested by professional organizations in the wood sector as part of an interprofessional agreement.

It is compulsory, according to the law, in that it is covered by an extension order issued by the Ministry for Agriculture, making payment of the contribution mandatory for all companies in the sector and for all forest owners who sell to a forestry operator, a cooperative or another wood buyer, whenever an invoice is issued.

In France, forest owners pay this compulsory, voluntary contribution when they sell their wood. The tax is paid to France Bois Forêt interprofessional organization.

The forest owner’s contribution stands at 0.5% of the amount of the sale of standing timber, 0.33% of timber sold at roadside, and 0.25% for timber delivered-to-factory.

 Keep up with Forêt Investissement’s articles and stay ahead of forestry legislation in France.

 

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