Expense rules in France.
All reimbursement rules, official URSSAF mileage rates, per diem from Decree 2020-689 and VAT recovery rules for your employees in France. Updated from official sources.
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1Expense rules & reclaimable VAT
| Expense category | VAT | VAT reclaim | URSSAF cap / Note |
|---|---|---|---|
| Business meal (clients / prospects) | 10% | 100% reclaimable | Invoice in company name, guest identity required |
| Solo meal while travelling (restaurant) | 10% | Non-reclaimable | Exempt cap €21.10 |
| Solo meal while travelling (lunch basket) | 5.5% | Non-reclaimable | Exempt cap €10.30 |
| Accommodation / hotel | 10% | Non-reclaimable | Except for client/transiting personnel accommodation |
| Fuel — diesel (passenger vehicle) | 20% | 80% reclaimable | Passenger vehicles |
| Fuel — petrol (passenger vehicle) | 20% | 80% reclaimable | Aligned since 2022 |
| Fuel — utility vehicles | 20% | 100% reclaimable | Diesel, LPG, petrol |
| Train, plane, public transport | 10% / 0% | Non-reclaimable | Passenger transport except specific cases |
| Taxi, ride-hailing | 10% | Non-reclaimable | Passenger transport |
| Client gifts | 20% | 100% reclaimable | If unit value < €73 incl. VAT |
| Toll / parking fees | 20% | 100% reclaimable | Company-name invoice |
Restaurant meal cap
Per-diem meal allowance exempt from social contributions when travelling for work (URSSAF 2025).
Lunch basket cap
Meal taken outside a restaurant, employee unable to take lunch at their usual location.
Paris accommodation (75/92/93/94)
Exempt cap per night + breakfast. Other regions: €55.10/day.
- Invoice in company name (mandatory for VAT > €25 ex-tax)
- Identity of guests for business meals
- Professional purpose of expense
- Date, location, total amount + VAT breakdown
- Storage 6 years (10 years recommended)
- Standard reimbursement delay: 30 days
2URSSAF mileage allowance
| Fiscal power | Up to 5,000 km | 5,001 to 20,000 km | Over 20,000 km |
|---|---|---|---|
| 3 CV and less | d × 0.529 | (d × 0.316) + €1,065 | d × 0.370 |
| 4 CV | d × 0.606 | (d × 0.340) + €1,330 | d × 0.407 |
| 5 CV | d × 0.636 | (d × 0.357) + €1,395 | d × 0.427 |
| 6 CV | d × 0.665 | (d × 0.374) + €1,457 | d × 0.447 |
| 7 CV and more | d × 0.697 | (d × 0.394) + €1,515 | d × 0.470 |
Electric vehicle bonus
Premium applied on the rate above for 100% electric vehicles (since 2022).
Bicycle & e-bike
Mileage allowance for cycling (IKV) — home-work trips.
Motorcycle (> 125 cm³)
Up to 3,000 km. Degressive rate beyond.
- Personal vehicle (registered in employee’s name)
- Strictly professional use, excluding home-work commute
- Justification of kilometers traveled
- Covers fuel, maintenance, insurance, depreciation
- Covers tolls and parking (unless reimbursed separately)
- 7 CV exemption ceiling (above = benefit in kind)
3Per diem and travel allowances
| Destination | Meal | Accommodation / night | Daily rate (24h) |
|---|---|---|---|
| Paris (75) + inner ring (92/93/94) | €17.50 | €110.00 | €145.00 |
| Cities > 200,000 inhabitants | €17.50 | €90.00 | €125.00 |
| Other cities (provinces) | €17.50 | €70.00 | €105.00 |
| Overseas territories (DOM-TOM) | €21.00 | €120.00 | €162.00 |
| Foreign — Germany (Berlin) | €25.00 | €95.00 | €145.00 |
| Foreign — United Kingdom (London) | €30.00 | €170.00 | €230.00 |
| Foreign — USA (New York) | €42.00 | €280.00 | €364.00 |
| Foreign — Switzerland (Geneva / Zurich) | €35.00 | €175.00 | €245.00 |
Duration condition
Meal: travel > 5h spanning meal time. Daily rate: travel > 24h with overnight stay.
Distance condition
Distance from usual workplace to qualify for long-distance allowances.
Long-mission reduction
From the 4th month of mission: -15%. From the 25th month: -30%.
- Choice between flat rate (per diem) and actual expenses with receipts
- Lump sum exempt from social contributions within URSSAF limits
- Mission ≥ 3 consecutive months: employee’s choice (flat or actual)
- Foreign: rate updated by annual ministerial decree (~200 countries)
- Accessory fees (taxi, parking) reimbursed on receipt
- Overseas territories: 20% premium on mainland rate
4Foreign VAT recovery
| Zone | Mechanism | Filing deadline | Method |
|---|---|---|---|
| European Union (27) | 8th Directive (2008/9/EC) | 30 Sept. N+1 | impots.gouv.fr portal |
| United Kingdom | 13th Directive (reciprocity) | 31 Dec. N+1 | HMRC VAT65A — paper |
| Switzerland | 13th Directive (reciprocity) | 30 June N+1 | FTA — Form 1222 |
| Norway | Bilateral agreement | 30 June N+1 | Skatteetaten — RF-1032 |
| USA | No recovery | — | Sales tax non-recoverable |
| Canada (GST/QST) | Limited agreement | Varies | Provincial procedure |
Quarterly minimum
Minimum reclaimable VAT for an EU quarterly request (8th Directive).
Annual minimum
Minimum reclaimable VAT for an EU annual request (before 30/09 N+1).
Typical ROI
Percentage of total expenses recovered via foreign VAT for a multi-country company.
- Original invoices (digital accepted since 2021)
- Company’s FR intracommunity VAT number
- Date, amount ex-tax / VAT / incl. tax, nature of expense
- Identification of foreign supplier (VAT, local commercial register)
- Justification of professional use
- Mandate for tax firm or recovery tool (if delegated)
Industrialize your France expenses with Illizeo.
URSSAF caps, mileage rates, per diems, foreign VAT recovery: all the rules above are natively integrated into the Illizeo engine. Your employees scan, the engine applies.
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