Expense Reimbursement policy in France

Modified on: Tue, 11 Nov, 2025 at 12:35 PM

TABLE OF CONTENTS

Invoicing & Documentation
What Can Be Reimbursed?
What Cannot Be Reimbursed?

This guide outlines the policies and procedures for expense reimbursement in France, including travel, documentation, taxability, and compliance considerations.

Invoicing & Documentation

Requirements for Tax-Free Reimbursement

To submit a valid expense claim in France, and qualify for tax-free reimbursement, you must provide the following documentation:

Receipts and Invoices: original receipts or invoices that clearly detail the purchase, including:
- The date of the transaction.
- The supplier's name and contact information.
- A description of the purchased goods or services.
- The amount paid, including taxes (VAT).

These receipts should not be altered and must be in the employee's name unless specified otherwise (for example, when the expenses were paid on behalf of the company).

Proof of Payment: If the receipt or invoice does not include proof of payment (such as a paid stamp or payment method), employees must also provide proof of payment. This can be in the form of:
- Bank statements showing the transaction.
- Credit card statements with the transaction matching the date and amount on the receipt.

Expense Report
Employees should submit an expense report along with the receipts/invoices, providing a breakdown of the expenses, including:

The purpose of the expense.
The business reason for the expense (e.g., meeting with clients, business trip, etc.).
Travel and Lodging Documents (if applicable)
For travel-related expenses (e.g., hotels, flights, and transportation), employees must provide:
- Flight and hotel booking confirmations.
- Taxi or public transport receipts.
- Car rental invoices and fuel receipts, where applicable.

There is no threshold below which invoices are not required. However, tolerances exist:

For restaurant meals ≤ €150 (VAT included), a simplified document with a blank field for customer details may suffice.
For tolls, company details should be entered on the back of the ticket.

From September 2026, electronic invoicing will be mandatory.

What Can Be Reimbursed?

In France, the types of expenses eligible for reimbursement generally fall into two categories: business-related expenses and travel-related expenses. Below are the common expense categories and key guidelines:

Travel Expenses

Mileage Reimbursement

In France, employees (or self-employed persons) who use their personal vehicle for professional purposes (for example: client visits, missions, trips outside the usual commute) may apply the official mileage-scale (“barème kilométrique”) published annually by the tax authorities.

Review the official milage-scale here.

The barème varies according to two main parameters:

The vehicle’s fiscal horsepower (chevaux fiscaux, CV)
The number of kilometres travelled for professional activity during the year.

For example, for the 2025 barème (for income year 2024) for cars:

For a 4 CV car: up to 5,000 km → 0.606 €/km ; from 5,001 to 20,000 km → 0.340 €/km + 1,330 €.

If the vehicle is 100% electric, there is a majoration of 20% on the applicable rate (i.e., one applies the classical barème rate then adds 20%) to encourage electric mobility.

Important note on example calculation: For a 4 CV car with 5,550 km travelled for professional purposes:

Because the distance is in the 5,001-20,000 km band, the correct rate is 0.340 €/km + 1,330.
So the indemnity = (5,550 × 0.340) + 1,330 = ≈ €3,217.
If the vehicle were electric, then you could apply: 3,217 × 1.20 ≈ €3,860 (approx).

When an employer reimburses these travel costs (employee using their own car for professional travel), if the reimbursement does not exceed the barème and conditions are met (vehicle registered to employee, travel for employer’s account, documented kilometres, etc.), the indemnity is exempt from social security contributions and income tax.

Employees must keep justifications: mileage log (date, purpose, client/mission, kilometres), proof of vehicle fiscal horsepower (car registration), etc., so that in case of inspection the amounts are justified.

Different scales apply for motorcycles and mopeds, and these must also be consulted in the official barème.

Parking Tickets and Tolls

Parking and toll fees are not included in mileage allowances and must be reimbursed separately with supporting receipts.

Business Travel Restrictions

There are no unified national rules for travel expense reimbursement. Companies may choose between:

Actual expense reimbursement (with receipts)
Flat-rate allowances, based on URSSAF and Tax Office scales

Employers may impose internal limits (e.g., hotel category restrictions), but the reimbursement must cover actual expenses.

Transportation Modes

Mileage allowances apply only to personal vehicles. For other transport (air, train, bus, taxi, tram), reimbursement is based on actual costs with invoices.

Only for business-related travel (e.g., traveling for meetings, attending a conference, or visiting clients), the following expenses can be reimbursed:

Public Transportation: Employees can be reimbursed for public transportation (metro, bus, tram, train, etc.) costs only when used for business-related travel.
Taxi and Ride-Sharing: Taxi and ride-sharing services (e.g., Uber).
Car Rentals and Mileage: Car rental costs. Rental fees, fuel costs, and tolls related to business travel are eligible for reimbursement.

Lodging and Meals

Hotel Accommodations: Employees can be reimbursed for hotel costs incurred during business trips, provided the accommodation was necessary for the trip and the invoice is clear.
Meals: Meal expenses incurred during work-related travel or events are reimbursable, as long as they are reasonable and necessary. Companies may set limits on meal reimbursements, and a receipt is required.

Per Diem Rates

Per diems cover meals and accommodations during business travel. For international travel, allowances are tax-exempt up to the rates set for civilian government personnel.

Reductions apply if:

Accommodation is provided: −65%
One meal is provided: −17.5%
Two meals are provided: −35%

Mixed reimbursement (actual + lump-sum) is allowed:

Meals: up to 40% of the total allowance
Accommodation: up to 60%

Office Supplies: Materials necessary for carrying out job duties (e.g., stationery, business software) can be reimbursed with the appropriate receipts.
Professional Services: Costs for professional services, such as legal or consulting fees, are eligible for reimbursement if they are related to the employee's work.

Telecommunication Costs
- Business Calls: Employees using personal phones for business calls can be reimbursed for the cost of those calls. Detailed phone bills should be provided as proof.
- Internet Charges: Employees working remotely or needing internet access while traveling can have internet costs reimbursed, provided they are work-related.
Training and Professional Development
- Courses and Conferences: Fees for professional development, such as seminars, conferences, or courses that are directly related to the employee’s role, can be reimbursed with the proper documentation.

Entertainment and Gift Expenses

Client gifts: VAT deductible up to €73 per beneficiary per year
Expenses must be proportionateto the business benefit
- Example: A €500 meal may be excessive if the client’s revenue is only €1,000

Health & Wellness Expenses

Medical expenses: Covered by the healthcare insurer; employees must submit invoices directly.
Therapy and alternative medicine: May be partially covered depending on the insurance contract.
Sporting activities(gym, yoga, swimming):
- Managed by the Social and Economic Committee (SEC) for companies with 50+ employees
- Benefits may be exempt from social contributions if:
  - Offered to all employees
  - Do not exceed €196 per year (5% of the monthly Social Security ceiling in 2025)
- Employer-provided access to gyms or sports facilities may also qualify for exemption

What Cannot Be Reimbursed?

Certain expenses are not reimbursed in France, including:

Personal expenses not related to business (e.g., personal meals, leisure activities).
Fines or penalties, such as parking tickets or speeding fines.
Clothing: Unless the clothing is required for specific professional roles (e.g., uniforms or protective gear), it is not reimbursed.

Tax Considerations

Expense reimbursements in France are generally non-taxable as long as they are directly related to business and supported by valid documentation. However, if an expense reimbursement is deemed excessive or unrelated to business, it may be treated as taxable income.

VAT is not added to the reimbursed amount
VAT paid by the employee is reimbursed in full (gross amount)

For more information on reimbursement regulations in France, you can refer to the Service-Public.fr website.

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