Per Diem

In France, the per diem (frais professionnels) regulations for business travel in 2025 include set allowances for meals and lodging. According to the latest guidelines from URSSAF:

• Meals & Lodging: The daily per diem for accommodation, breakfast, and two meals is €90.
• Meals Only: If only meals are covered (without lodging), the per diem is assessed based on an employer-provided allowance or reimbursement.
• Accommodation: If the employer provides lodging, it is valued at a fixed monthly rate depending on the employee’s gross salary.
• Meal Valuation: When an employer provides free meals, the standard taxable benefit is €4.85 per meal.

Employers must ensure that reimbursements comply with the fixed rates to avoid tax and social security contributions unless they can justify actual expenses exceeding these rates.

For more details, visit URSSAF France​

Mileage

For 2025, the official mileage reimbursement rates in France are structured based on the vehicle’s power (measured in fiscal horsepower or CV) and fuel type. These rates apply to business-related travel expenses and are set by the French government.

Here are the key mileage reimbursement rates for 2025:

• Cars (Véhicules de tourisme):
  • 3-4 CV: €0.094 per km for diesel, €0.119 per km for gasoline, €0.074 per km for GPL.
  • 5-7 CV: €0.116 per km for diesel, €0.147 per km for gasoline, €0.091 per km for GPL.
  • 8-9 CV: €0.137 per km for diesel, €0.174 per km for gasoline, €0.108 per km for GPL.
  • 10-11 CV: €0.155 per km for diesel, €0.197 per km for gasoline, €0.122 per km for GPL.
  • 12+ CV: €0.172 per km for diesel, €0.219 per km for gasoline, €0.136 per km for GPL.
• Motorcycles and scooters:
  • Below 50cc: €0.038 per km.
  • 50cc-125cc: €0.078 per km.
  • 3-5 CV: €0.099 per km.
  • Above 5 CV: €0.137 per km.

These rates are officially published by the French tax authority and are used for expense reimbursements and tax deductions related to professional travel costs​ bofip.impots.gouv.fr. For more details, you can check the official government sources here.

Paperless

In France, businesses are encouraged to maintain digital records in compliance with the French Tax Code. The use of electronic invoicing and digital receipts is accepted for tax and legal purposes, provided that businesses ensure the authenticity, accessibility, and retrievability of the documents. These records must be kept for a minimum of six years following the end of the year in which they were created, and businesses must have the capacity to produce them upon request by the French Tax Administration (Direction Générale des Finances Publiques – DGFiP).

Key aspects include:

• Electronic invoicing: Must include all required information, such as the seller’s and buyer’s details, the product/service details, and the VAT rate applied.
• Storage: Digital records must be stored in a system that ensures their integrity and that they are accessible at any time for review by the tax authorities.
• Compliance: Businesses must meet the e-invoicing requirements, which have been mandatory for larger companies since 2024, and will gradually extend to smaller businesses by 2026.

For more details on the digital record-keeping requirements, refer to the DGFiP’s official guidance on electronic invoicing.​ yokoy.io accountinginsights.org

Meals, Benefits & Allowances

In France, the compliance regulations for meals, benefits, and allowances for business travel in 2025 are as follows:

Meal Allowances

• Employees on business trips who must eat in a restaurant can receive a meal allowance of €21.10 per meal.
• Employees who eat outside their workplace but not in a restaurant can receive €10.30 per meal.
• A separate catering allowance of €7.40 is available for meals taken at the workplace due to work conditions (e.g., extended hours)​
  entreprendre.service-public.fr

Per Diem Allowance

• For 2024, the daily per diem (which includes meals and other incidental expenses) in France was €41.40. This may be subject to adjustments in 2025​
  bezala.com

Mileage Allowance

• The mileage reimbursement rate varies based on vehicle power, starting at €0.529 per km for cars with 3 CV or less, increasing for higher engine capacities​
  bezala.com

Tax-Exempt Limits

• These allowances are exempt from social contributions up to the stated thresholds. If a company reimburses employees beyond these limits, the excess amount is subject to payroll taxes​
  entreprendre.service-public.fr

These regulations ensure compliance with French labor and tax laws when compensating employees for travel-related expenses. If you need further details, I recommend referring to URSSAF or French tax authorities’ websites for any recent updates.

Sales tax rates

In 2025, France’s VAT (Value Added Tax) rates for business travel and related expenses vary based on the type of service. The main VAT rates applicable are:

• 20% (Standard Rate): Applies to most business-related expenses, including hotels, car rentals, and general services. This is the default rate for most taxable goods and services in France.
• 10% (Intermediate Rate): Applies to passenger transport (e.g., taxis, trains, and flights within France), restaurant services, and certain accommodation services.
• 5.5% (Reduced Rate): Applies to some transportation services, books, and specific cultural events.
• 2.1% (Super-Reduced Rate): Mainly applies to certain press publications and medicine.

VAT Recovery on Business Travel

Businesses can often reclaim VAT on eligible expenses, but there are restrictions:

• Hotels and Accommodations: VAT is generally not refundable for employee lodging.
• Meals & Restaurants: VAT is refundable if the expense is strictly business-related.
• Transport: VAT is refundable for domestic flights and train travel, but international travel may be exempt from VAT.
• Car Rentals: VAT is refundable only if the vehicle is not used for passenger transport.

Companies outside the EU may need a Fiscal Representative to reclaim VAT in France​

vatai.com vatupdate.com stripe.com

Key points for businesses include:

• Filing: VAT-registered businesses must file VAT returns either monthly or quarterly, depending on their turnover. These filings must include all VAT charged on sales (output VAT) and VAT paid on purchases (input VAT). The business can then offset the difference.
• Cross-border transactions: France follows EU VAT rules for intra-community transactions, and zero-rated VAT applies to goods sold to customers within the EU (under specific conditions).

For further information, visit the DGFiP’s official VAT page or see detailed guidance on VAT obligations for businesses in France​. accountinginsights.org bezala.com