“A complimentary coffee costs nothing more than the price of the coffee itself.” This is the most widespread misconception about promotional gestures in the restaurant industry. In reality, every complimentary item, every discount, and every staff meal is subject to its own VAT rules and leaves a record in your cash register that the tax authorities can access. On November 6, 2026, the GHR provided a reminder in *Au Cœur du CHR* regarding the rules for complimentary items. This is a good opportunity to take stock: there are four distinct types of transactions, a specific calculation for staff meals, and a method to ensure your cash register and your accountant are on the same page.
On the receipt, these transactions look the same: an item priced at €0 or at a discounted price. For tax purposes, however, they are treated differently.
“On the receipt, a free item and a discounted item are treated the same way: VAT is charged only on the amount actually collected. The difference lies in accounting. That’s why the POS system distinguishes between free items and discounted items in reports: the accountant can process each one correctly.” Claire Fournol, Product Manager at Innovorder
👉 Learn more: What are the VAT rates for the restaurant industry in France?
In principle, the VAT paid on a good that is given away is not deductible: it was not used in connection with any sale. However, the restaurant industry benefits from a more flexible interpretation, as noted by the GHR, which depends on where the donated item is consumed.
A complimentary dessert for a regular customer, or a complimentary coffee after an excessively long wait during a busy period: when consumed on the premises, these complimentary items serve the business’s commercial interests by building customer loyalty or making up for a mistake. According to the GHR, the VAT paid on the ingredients used remains deductible. One condition: the complimentary item must be recorded at the register, and the receipt must serve as proof.
If the customer leaves with the complimentary item, the GHR considers that it no longer serves the establishment’s interests. VAT on materials is not deductible, and it must be repaid if it has already been deducted.
There are two important distinctions to keep in mind. The GHR does not cite any specific regulations to support this distinction between dine-in and takeout. Nor does it address the case of complimentary beverages, such as after-dinner drinks or coffee. On these two points, have your accounting professional review and approve your practices.
Feeding the staff before a shift is a common practice, both in fast-food and traditional restaurants. As far as VAT is concerned, this meal is not considered a sale: no VAT is collected, but the VAT deducted on the food items must be remitted.
When the team orders a dish from the menu, the meal is recorded at the register without VAT on its list price. The VAT paid on ingredients is then adjusted to its actual amount based on your accounting data.
Staff meals are not listed on the menu, so it is impossible to determine the actual VAT amount for each meal. The BOFiP (BOI-TVA-CHAMP-10-20-20, § 100) provides for a flat rate. The pre-tax cost of a meal is deemed to be equal to one times the guaranteed minimum wage if the employee earns up to the Social Security ceiling, and one and a half times that amount above the ceiling. This amount is deemed to consist of 85% food items subject to the reduced rate and 15% products subject to the standard rate.
The calculation using the guaranteed minimum of €4.35, effective as of June 1, 2026:
This is the figure cited by the industry’s trade press: The hotel and restaurant sector reached €0.32 with the 2024 guaranteed minimum.
For a team of six people who eat lunch on-site 22 days a month, that amounts to 132 meals, or about €44 per month and more than €500 over the course of a year. The amount is modest, but small amounts add up from one year to the next. The guaranteed minimum is adjusted regularly: check its value as of the adjustment date.
This flat rate applies only to VAT. The meal provided to the employee is also considered a benefit in kind for social security contribution purposes, with its own rules set forth in the collective bargaining agreement for hotels, cafes, and restaurants: please consult your payroll administrator.
An NF525-certified cash register keeps a record of every sensitive transaction, and the tax authorities can access it during an audit. On an Innovorder register, every product offered is recorded in the audit trail—the log of sensitive actions. It includes the product’s value, VAT, the operator who processed the transaction, and the time. However, the register must be properly configured for these records to tell a coherent story.
There are significant differences between restaurants. In commercial restaurants equipped with Innovorder, between November 2025 and October 2026, discounts accounted for a median of 0.5% of total revenue (including tax). One-quarter of establishments exceeded 2.4%. The first step is to understand your own situation.
A checklist to ensure your team outings and meals are properly tracked and documented:
👉 Learn more: Everything You Need to Know About the NF525 Standard in 5 Points
The fund tracks transactions; it does not make decisions. VAT deductibility, adjustments, and the choice between the actual and flat-rate methods: these decisions are up to your accountant, based on the data provided by the fund.
Another limitation: the Innovorder system does not ask for a reason when a product is offered. It records who offered it and when, but not why. The “why” is therefore determined by your gift policy: who is authorized to offer gifts, which products, and under what circumstances (waiting time, order error, loyal customer). Once written down and shared with the team, this policy ensures that every complimentary item can be justified should an auditor ever ask about it.
👉 Learn more: How can you make the most of your restaurant POS software's reports?
Would you like to check the settings for your special offers, discounts, and team meals on your POS system? Talk to an Innovorder expert.
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