The different VAT rates in France are: 

Employers in France can provide employees with a tax-free allowance for business travel intended to cover expenses such as food and accommodation during the trip. 

To claim per diem allowances for long-distance trips, employees must not be able to return to their residence from their work location. For them to be eligible to receive a per diem, these two conditions must be met: 

• The distance between their place of residence and their place of work is greater than or equal to 50 km, one way; 

• Public transport does not allow this distance to be covered in less than 1h30, one way.

What is the tax free allowance in France?

The per diem rates in France depend upon the location of the trip:

In France, employees can opt into a flat rate deduction of 10% to cover work expenses related to their job such as travel expense, catering costs, or workwear necessary for their role. This flat rate deduction is automatically deducted from the employee’s salary. 

Employees have the option to waive the flat-rate deduction to deduct the actual expense instead; the 10% deduction and the deduction of actual expenses cannot be claimed simultaneously.  

The 10% flat-rate deduction is: 

• at least €504, unless remuneration is less than this amount, or, 
• a maximum of €14,426. 

If an employee opts out of the 10% deduction, the allowances or reimbursements provided by the employer are tax free, if: 

• The expenses are professional, 
• correspond to actual expenses,  
• can be justified,  
• are specific.  

In accordance with Article L102B of the Tax Procedures book, employers must keep records for 6 years from the date of the last entry or the date they were created. 

If these records are created or received in digital form, they must also be kept in that format for at least the same 6-year period, as required by Article L.169. 

Digital record keeping

As long as reproduction is identical to the paper document, digitisation of paper receipts is allowed. Each document must be kept in a PDF format with an accompanying digital timestamp.  

In France, employees can claim a mileage allowance for any expenses incurred from professional travel. To claim an allowance, employees must provide: 

• The date, place, and purpose of the business trip 
• The name of the client or business partner 
• Kilometres travelled 
• Their car registration document 

The refund can be paid directly to the employee through company accounts, or through monthly payroll with the number of kilometres travelled, the rate, and the total amount of allowance mentioned on the French payslip.  

Business travel

If an employee uses their vehicle for professional purposes (vehicles they own, co-own, or lease), they are entitled to a flat-rate kilometric allowance which follows business mileage rates in France published annually by the tax administration.  

This is tax-free.