Capital
Paris
Currency
Euro
Languages
French
Population size
67.8M
Average Monthly Salary
€2500
EU
Since 1958
Region
Western-Europe
Gift Giving Norms
Fine gifts (wine, food) common
Major Corporate Gift Days
Christmas, Bastille Day
Customs Complexity
Medium
VAT - Standard Rate
20%
Duty Free Threshold
€150
Ave Duty Rate
2%
1. Employee Merch vs. Gifts
French regulations distinguish between benefits in kind (avantages en nature) and purely corporate expenses. The Urssaf (French Social Security Contributions Agency) also provides specific thresholds for tax-free or contribution-free benefits, especially for certain events.
1.1 Merchandise for Employees
Work-Related (Potentially Non-Taxable)
Uniforms or Essential Equipment
Items required for an employee’s role (e.g., branded uniforms, safety gear) generally do not count as a taxable benefit. They are considered necessary for work.
Branded Office Items
If merchandise (like apparel or stationery) features a visible company logo and is consistently positioned as part of the job, it often qualifies as a non-taxable benefit—assuming it’s directly linked to work needs.
Gifts (Potentially Taxable)
Occasional Gifts & Thresholds
France has certain tax/social exemptions for occasional gifts (e.g., year-end celebrations, Christmas, Mother’s/Father’s Day, back-to-school) if the value per employee does not exceed a specific Urssaf threshold. (This threshold is typically 5% of the monthly Social Security ceiling—around €170–€190 in recent years—per event, but exact rules vary.)
If you exceed that threshold, or if the item doesn’t match one of the recognized events, it may be treated as a benefit in kind, subject to social contributions and potentially income tax for the employee.
Non-Work Items
If an item is purely for personal enjoyment and doesn’t fit an occasional gift exemption, the fair market value can be added to the employee’s taxable income or subjected to employer-paid flat social charges.
1.2 Gifts for Non-Employees (Clients, Partners, Event Attendees)
Tax & Deductibility
French law generally caps the deductibility of business gifts if they are excessive or lack a genuine business purpose. If properly documented, moderate-value corporate gifts can be deducted as professional expenses.
Compliance & Anti-Corruption
France’s Sapin II law strengthens anti-corruption measures. High-value gifts in certain industries (e.g., healthcare) can raise red flags. Keep detailed records to demonstrate transparency.
1.3 Marketing Merch
Branded items distributed at trade shows or events primarily to advertise your company are often marketing expenses rather than gifts. Invoices and event documentation should clearly reflect their promotional nature.
2. Shipping, Customs & Duties
2.1 Shipping
2.2 Importing
Import Duties & VAT
Goods from non-EU locations are subject to customs duties if they exceed €150 in declared value, plus 20% French VAT on the combined total of (product value + shipping + duties).
Proper Documentation
Always include a commercial invoice with correct product descriptions and HS codes for smooth customs clearance.
2.3 DDP vs. DAP
Delivered Duty Paid (DDP)
Shifts all import taxes and fees to the sender
Delivered At Place (DAP)
Leaves the recipient responsible.
2.4 With Monday Merch
Since our warehouse is in Rotterdam, The Netherlands, no customs duties or import charges apply to goods sent elsewhere in the EU, including France. This simplifies both costs and paperwork. Additionally, our merch consultants can advise on VAT applications for your company, if necessary.
3. Cultural & Local Etiquette
3.1 Gifting customs
4. Sustainability & Local Regulations
4.1 Sustainability & Regulations
5. HR & Employee Relations Considerations
5.1 HR & Employee Relations
6. Summary and Key Takeaways
6.1 Summary & Takeaways
7. Frequently Asked Questions
7.1 Questions & Answers
Is staff merchandise taxed in France?
If it’s purely personal and over certain thresholds, yes; work-required items aren’t taxable.
Can B2B gifts be deducted?
They’re deductible if they serve real promotional aims, with moderate costs.
Cultural note on gifting?
French business culture appreciates refined, quality items over cheap or excessive ones.
