Recovering VAT on travel expenses: 2026 rules and practical cases

Every year, businesses leave thousands of euros of VAT on the table by not fully understanding the rules applicable to travel expenses. VAT recovery on these costs follows a clear logic: some categories allow full deduction, others are partially recoverable, and a few face explicit exclusions under the French Tax Code. This practical guide covers the 2026 rules from BOFiP (TVA-DED-20-20) and Article 206 of Annex II of the CGI, with worked examples for each expense category.

The right to deduct VAT is governed by Article 271 of the CGI: a VAT-registered business can deduct VAT on goods and services used for its taxable operations. Professional travel expenses fall within this framework, subject to three cumulative conditions:

• ▸Substantive condition: the expense must be incurred in the interest of the business
• ▸Formal condition: the company must hold a compliant invoice showing the VAT amount
• ▸No legal exclusion: certain categories are expressly excluded by statute regardless of the professional purpose

The tax authority details these rules in BOFiP under reference TVA-DED-20-20, which lists the exclusions and restrictions applying to operating expenses.

Train and plane tickets are VAT-exempt in France — no VAT is charged and therefore none can be recovered.

Taxis and ride-hailing (Uber, Bolt) are subject to 20% VAT, which is fully deductible on a compliant invoice. Example: a €60 TTC fare includes €10 of recoverable VAT.

Public transport (Metro, RER, Navigo passes) is VAT-exempt — no recovery possible.

Hotel stays for genuine professional travel are subject to 10% VAT, which is deductible. Example: a hotel bill of €200 TTC includes €18.18 of recoverable VAT.

Key exclusion: under Article 206 IV-2-d of Annex II CGI, VAT on accommodation treated as a benefit in kind for directors or employees (where no genuine professional necessity exists) is non-deductible.

Airbnb/short-term rentals: VAT is only recoverable if the host is a VAT-registered professional. Rentals from private individuals carry no VAT.

Solo meals during a business trip: VAT at 10% is deductible with adequate documentation showing the professional context.

Business entertainment meals (with external clients or partners): VAT is excluded from deduction under BOFiP TVA-DED-20-20, regardless of the professional purpose.

Example: a solo lunch of €45 TTC yields €4.09 of recoverable VAT. A client dinner of €120 TTC yields zero recoverable VAT.

Utility vehicles (vans, commercial vehicles): VAT on fuel is 100% deductible.

Passenger/tourist vehicles: Article 298 CGI applies a blanket exclusion:

• ▸Petrol/petrol hybrid: VAT on fuel is 0% deductible
• ▸Diesel/GNV/GPL: VAT on fuel is 80% deductible
• ▸Acquisition, maintenance, and leasing: VAT excluded entirely

This exclusion applies even if the vehicle is used exclusively for professional purposes.

• ▸Train and plane tickets: VAT-exempt, no recovery
• ▸Director accommodation treated as a benefit in kind
• ▸Business entertainment meals with external guests
• ▸Tourist vehicle acquisition, maintenance, and repairs
• ▸Car rental/leasing (tourist vehicles)
• ▸Petrol fuel for tourist vehicles

Required documents:

• ▸Compliant invoices with VAT number, HT amount, VAT rate, TTC amount
• ▸Supporting business purpose: mission orders, meeting notes, professional diary
• ▸For mileage: logbook with date, route, distance, professional reason

Documents must be retained for 3 years from the relevant VAT return date.

Accounting entries for a hotel (€200 TTC, 10% VAT):

• ▸Debit 625700 - Accommodation: €181.82
• ▸Debit 445660 - Deductible VAT: €18.18
• ▸Credit 401000 - Suppliers: €200.00

Recovering VAT on travel expenses is a concrete opportunity for any business with regular travel. The BOFiP TVA-DED-20-20 and Article 206 of Annex II CGI set a clear framework.

Key takeaways for 2026:

• ▸Train/plane: VAT-exempt, no recovery
• ▸Hotel (professional): 10% VAT recoverable with justification
• ▸Solo meal on travel: 10% VAT recoverable
• ▸Client entertainment meals: VAT excluded
• ▸Taxi/VTC: 20% VAT fully recoverable on compliant invoice
• ▸Tourist vehicle fuel (petrol): excluded; diesel: 80% deductible
• ▸Utility vehicle fuel: 100% deductible

Proper application of these rules can represent over €2,000 in annual VAT recovery for a business with €30,000 in annual travel expenses.

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Is hotel VAT always deductible for a business trip?

Hotel VAT is deductible when the trip is genuinely required by the business and the overnight stay is justified (distance, timing constraints). It is excluded when accommodation is treated as a benefit in kind — for instance, when the journey could reasonably have been completed in a day. Always retain the mission order and any documentation showing the professional necessity.

Can VAT on petrol for a company car be recovered?

No. Article 298 CGI expressly excludes VAT deduction on petrol for tourist/passenger vehicles, even when used exclusively for professional purposes. For diesel, deduction is allowed but capped at 80% of the VAT charged. For utility vehicles, VAT on all fuel types is fully deductible.

Is a full invoice required to recover VAT on a meal during a business trip?

Below €150 HT, a simplified receipt is sufficient as a fiscal document, provided it shows the date, supplier name and TTC amount. Above this threshold, a full invoice with VAT number, HT amount, rate and VAT amount is mandatory. In all cases, the professional purpose of the meal must be documentable.