You send an employee on assignment to Cayenne, Kourou or Saint-Laurent-du-Maroni, and accounting asks the inevitable question: can the VAT on the accommodation be reclaimed? The answer deserves to be precise, because it depends directly on the type of service, the wording of the invoice and the way the expense is settled. In French Guiana, VAT follows particular rules that you need to know before reasoning as you would in mainland France. This article takes stock, without unnecessary jargon, of what is genuinely deductible for a company and of how to obtain clean supporting documents your accountant can actually work with.
The goal: to help you choose accommodation with full knowledge of the facts, avoid unpleasant surprises at year-end, and secure your expense claims. We will also look at how a para-hotel solution can simplify the management of long business stays.
VAT and accommodation: the general framework
In France, VAT on accommodation and lodging expenses for a company’s directors and employees is, in principle, not deductible. It is an exclusion rule well known to accountants: paying for a hotel night for an employee does not, as a general rule, allow the corresponding VAT to be reclaimed.
There are, however, important nuances depending on who is being accommodated and on the type of service. The distinction between pure accommodation and a broader service (para-hotel services, catering invoiced separately, rental of professional premises) often changes the picture.
The special case of French Guiana
French Guiana is a specific tax territory. Unlike Guadeloupe and Martinique, VAT does not apply in the same way in the department: historically, VAT is not chargeable in French Guiana on many transactions. In practical terms, this means that the question of reclaiming VAT may not arise at all on certain local invoices, simply because no VAT has been charged to reclaim.
This is something many mainland companies discover during their first assignment on site. As a guide, it is therefore essential to:
- Check whether your French Guiana supplier’s invoice actually shows VAT;
- Distinguish services subject to VAT (often services attached to national rules) from those that carry none;
- Have the accounting treatment validated by your accountant, the only person qualified to rule on your specific situation.
In other words, never assume that VAT is reclaimed as usual: in French Guiana, the reasoning starts by checking what the document actually states.
Standard accommodation or para-hotel: why the difference matters
Bare accommodation (simply making a property available) and a para-hotel service are not treated in the same way, either commercially or in accounting terms.
A para-hotel service is characterised by the provision, in addition to the accommodation, of hotel-type services: reception, provision of linen, cleaning, and sometimes other services. This positioning can change the regime applicable to the service and the nature of the invoice issued.
For a company, the benefit is above all practical:
- Invoicing is clear, in the company’s name, with an invoice number and the expected legal particulars;
- The service is identifiable (assignment accommodation, long stay), which makes accounting allocation easier;
- Payment by bank transfer from the company account leaves a clear trail, required in the event of an audit.
What para-hotel accommodation brings to a business stay in French Guiana
In French Guiana, the traditional hotel offering is concentrated in a few areas (central Cayenne, the airport district in Matoury, Kourou for assignments linked to the Guiana Space Centre). For an assignment lasting several weeks, a well-located para-hotel property, for example in Cayenne, Rémire-Montjoly or near the Kourou business zone, often offers a better comfort-to-price ratio than a hotel room, with a kitchen and genuine living space.
To see the properties available for this type of stay, take a look at our accommodation.
Getting a usable invoice in the company’s name
The most important factor in whether an expense is deductible (VAT or charge) remains the quality of the supporting document. An invoice in the employee’s name, without the required particulars, or settled in cash, exposes the company to rejection in the event of an audit.
A compliant business invoice must include:
- The corporate name and address of your company (the customer);
- The identity and contact details of the supplier;
- The SIREN/SIRET number and, where applicable, the supplier’s intra-EU VAT number;
- A unique invoice number and the date of issue;
- A precise description of the service (accommodation, dates of stay, number of nights);
- The amount excluding tax, the VAT rate and amount where applicable, and the total payable;
- The payment terms and date.
Checklist before booking business accommodation
- Will the invoice be issued in the company’s name (and not the employee’s)?
- Will the full legal particulars appear on the document?
- Will VAT (if applicable) be clearly itemised on the invoice?
- Is payment by transfer from the company account possible?
- Does the wording specify the dates and nature of the stay (assignment, long term)?
- Can a corporate quote be provided in advance to validate the budget?
Ticking these boxes before booking avoids most subsequent accounting hold-ups.
A compliant expense claim: good habits
Even when the VAT cannot be reclaimed, the accommodation expense remains, in most cases, a charge deductible from the company’s profit if it is incurred in the interests of the business and properly supported. The expense claim is the link that connects the expense to the assignment.
A few good practices:
- Attach each night to an identified assignment (client, site, project);
- Keep the original invoice, not just the payment receipt;
- Favour payment by transfer or corporate card rather than cash;
- Avoid personal payments advanced by the employee when direct company settlement is possible;
- Archive supporting documents legibly for the accountant and for any potential audit.
For recurring assignments, standardising these habits saves valuable time and reduces the risk of error.
