Restaurant Gift Card Rules & Regulations 2026

You've just launched your gift cards and the first sales are coming in. A customer walks up to the counter with a voucher purchased three years ago. Do you have to accept it? Another asks for a cash refund of the remaining balance. Are you obliged to give one? A works council wants to order fifty cards for its employees — what tax rules apply?

Gift card regulations for restaurants raise practical questions that most independent restaurateurs have never been trained on. Yet a single mistake — a voucher wrongly refused, VAT incorrectly declared, missing terms and conditions — can prove costly: a customer dispute, a tax audit, or simply a loss of trust.

This article breaks down the legal, tax, and accounting framework for restaurant gift cards in France. No unnecessary jargon, clear answers, and actions you can put in place in your establishment starting today.

What French law says about restaurant gift card regulations

The general framework: vouchers and electronic money

Under French law, a restaurant gift card is not simply a "discount voucher." Depending on its form, it may fall under several regulatory frameworks:

Single-purpose or multi-purpose voucher: governed by Articles L. 227-1 et seq. of the French Monetary and Financial Code, transposing EU Directive 2016/1065 on vouchers.
Payment instrument: if the card is reloadable or usable across a network of partners, it may qualify as electronic money, which imposes additional obligations (approval from the French Prudential Supervision and Resolution Authority, ACPR). For an independent restaurateur issuing cards usable only in their own establishment, this scenario generally does not apply.

In practice, the vast majority of gift cards issued by independent restaurants are multi-purpose vouchers (MPVs in EU terminology). This means the voucher amount can be used to pay for different products or services, each potentially subject to a different VAT rate (a starter at 10%, a bottle of wine for takeaway at 20%, etc.).

This distinction has direct tax implications, which we detail below.

Gift card validity: the five-year rule is not automatic

This is one of the most common questions. How long does a restaurant gift card remain valid?

Article 2224 of the French Civil Code sets the standard limitation period at five years for civil obligations. This means that, in the absence of any stated terms, a customer theoretically has five years to use their voucher.

However, you are entitled to set a shorter validity period, provided you comply with two rules:

Clearly inform the customer before purchase. The validity period must be visibly displayed on the card itself or in the terms and conditions (T&Cs) provided at the time of purchase.
Do not set an unreasonably short period. The French Consumer Code (Article L. 212-1) prohibits clauses that create a significant imbalance between the rights and obligations of the parties. A gift card valid for only one month would very likely be deemed unfair. In contrast, a period of twelve to twenty-four months is widely accepted in commercial practice and has not, to date, been challenged by case law.

Practical recommendation: set a validity period of twelve months, clearly stated on the card (physical or digital). This strikes the right balance between managing your cash flow and respecting consumer rights. Include this period in your T&Cs and on your online sales page.

Refunds: are you obliged to give change?

Unless you have stated otherwise, you are under no obligation to refund the unused balance of a gift card in cash. The voucher entitles the holder to a service (a meal, a drink), not a cash conversion.

Likewise, if the bill exceeds the card's value, the customer simply pays the difference using another payment method. No legal provision requires you to issue a credit for the remaining balance either, unless your T&Cs provide for it.

That said, if you offer a carry-over balance system (where the card retains the remaining amount for a future visit), this is a commercial advantage that customers appreciate and an effective loyalty driver. To explore this topic further, see our article on customer loyalty strategies for restaurants.

VAT and restaurant gift cards: the applicable tax rules

The distinction between single-purpose and multi-purpose vouchers

Since the transposition of EU Directive 2016/1065 (Order No. 2019-1067 of 21 October 2019), French tax law distinguishes between two types of vouchers:

Single-Purpose Voucher (SPV): the place of supply and the applicable VAT rate are known at the time the voucher is issued. VAT is therefore due at the point of sale of the voucher.
Multi-Purpose Voucher (MPV): the VAT rate cannot be determined in advance. VAT is due at the point of redemption, i.e. when the customer visits the restaurant and pays with their gift card.

In a restaurant, almost all gift cards are MPVs. Why? Because the customer might order a dine-in menu (VAT at 10%), a bottle for takeaway (VAT at 20%), or a dessert (VAT at 10%). The applicable rate depends on what they actually consume.

The direct impact on your accounting

When you sell an MPV gift card, you do not collect VAT. The amount received is recorded as a liability to the cardholder (account 4191 — Customer advances and deposits received, or a dedicated account in your chart of accounts).

When the customer redeems the card, you record the transaction as normal, with the corresponding VAT, just as you would for any other payment method.

Here is the simplified accounting treatment:

At the point of sale (example: €80 gift card / approx. £70 / $90)

Debit: 512 (Bank) → €80
Credit: 4191 (Customer advances) → €80

At redemption (the customer has a meal worth €80 incl. VAT, VAT at 10%)

Debit: 4191 (Customer advances) → €80
Credit: 7071 (Sales of goods/services) → €72.73
Credit: 44571 (VAT collected, 10%) → €7.27

This treatment complies with Article 256 ter of the French General Tax Code (CGI) for multi-purpose vouchers.

The case of unredeemed gift cards (breakage)

What happens in your accounts if a gift card expires without being used? The amount remains in the customer advances account. Upon expiry, you may transfer it to exceptional income (account 7718). This income is subject to corporate or income tax (depending on your tax regime), but not to VAT, since no service was provided.

This point is often misunderstood. Gift card breakage does constitute taxable income. You cannot leave it indefinitely as a customer liability in your accounts.

Disclosure requirements and consumer protection

Mandatory information on the gift card

The French Consumer Code requires clear and fair information for consumers. For a restaurant gift card, this translates into the following details, which must appear either on the physical card or in a document provided at the time of purchase (T&Cs, confirmation email for digital cards):

The issuer's identity: establishment name, address, business registration number (SIRET)
The amount on the card or the service it entitles the holder to
The validity period with a precise expiry date
The terms of use: establishment(s) where the card is accepted, whether multiple cards can be combined, whether the remaining balance carries over
Any restrictions: for example, not valid on New Year's Eve, or only valid for the lunch menu

The absence of these details does not invalidate the card, but it does leave you exposed in the event of a dispute. A customer contesting the expiry of their card will have a much stronger case before a consumer mediator if no validity period was clearly communicated.

Terms and conditions: your safety net

Drafting specific T&Cs for your gift cards is not a legal luxury — it is essential protection. These T&Cs should cover:

How to purchase (online, in person)
Accepted payment methods for buying the card
Delivery terms (postal delivery, email, in-person handover)
The right of withdrawal (applicable only for distance sales, within 14 days of receipt, pursuant to Article L. 221-18 of the French Consumer Code)
Your policy on loss or theft
Non-refundability (except when exercising the right of withdrawal)
Contact details for your designated consumer mediator

If you sell your gift cards online — which has become essential to developing your digital marketing strategy — the 14-day right of withdrawal applies. The customer may cancel their purchase without giving a reason. However, if the card has already been used (even partially), the right of withdrawal is extinguished for the portion that has been consumed.

Gift cards from businesses and works councils: a specific framework

Many restaurants sell gift cards to works councils (comités sociaux et économiques, or CSE) or directly to businesses that give them to their employees. This segment represents a significant volume, particularly at year-end.

For the business or works council offering these cards, the question of social security contributions arises. The French social security authority (URSSAF) applies a tolerance under which vouchers and gift cards given to employees are exempt from social security contributions provided their value does not exceed 5% of the monthly social security ceiling (PMSS) per employee per qualifying event.

For 2026, the PMSS is set at €3,925 (approx. £3,350 / $4,250) (source: decree of 19 December 2025, published in the Official Journal). The exemption threshold is therefore €196.25 per employee per event (approx. £165 / $210).

The qualifying events recognised by URSSAF are strictly listed:

Christmas (for employees and children up to age 16)
Back to school
Marriage / civil partnership
Birth / adoption
Mother's Day / Father's Day
Saint Catherine's Day / Saint Nicholas' Day
Retirement

What this means for you as a restaurateur

You have no reporting obligation to URSSAF as the issuer of the cards. It is the purchasing business or works council that must ensure compliance with the thresholds.

However, this information is commercially valuable. When approaching works councils, you can highlight the exemption threshold as a selling point: "Treat your team to a gourmet experience free of social charges, up to €196.25 per person."

This is a practical way to boost your restaurant's profitability by diversifying your sales channels.

The right of withdrawal: what you need to know

Online sales: the 14-day cooling-off period applies

If you sell your gift cards through your website or a platform such as ALaCarte.direct, you are subject to distance selling rules. The customer has a 14-day right of withdrawal from receipt of the card (physical) or the confirmation email (digital card).

During this period, the customer may cancel their purchase without giving a reason or incurring any penalties, and you must issue a full refund within 14 days of their request.

Important exception: if the gift card has been used, even partially, during the withdrawal period, the right of withdrawal is limited. You need only refund the unused portion, as the customer accepted the performance of the service.

In-person sales: no right of withdrawal

When a gift card is purchased directly at the restaurant, it is a sale made on commercial premises. The right of withdrawal does not apply. You have no legal obligation to take back or refund a card sold over the counter, unless you have made a commercial commitment to do so.

Invoicing and documentation: best practices

Do you need to issue an invoice when selling a card?

For sales to individual consumers, a till receipt is sufficient. Since the gift card is not a service subject to VAT at the point of sale (remember: it is a multi-purpose voucher), the receipt simply states the amount and the nature of the transaction ("Gift card — €80").

For sales to businesses and works councils, an invoice is required (Article 289 of the CGI). It must include:

Your full details and intra-Community VAT number
The buyer's details
The date of sale
The description: "Multi-purpose vouchers — Restaurant gift cards"
The total amount excluding VAT (which equals the amount including VAT since no VAT applies at this stage)
The statement "VAT not applicable — Article 256 ter of the CGI, multi-purpose voucher"

Recording in your till system

Under France's anti-fraud legislation (Article 286 of the CGI), every restaurateur must use a certified till system (NF 525 standard) or one attested by the software provider. Gift card sales must be recorded, but in a separate category from meal sales (since no VAT is collected at that point).

Similarly, when a customer uses their gift card to pay for a meal, the "gift card" payment method must be identified in your till system, just like "cash," "card," or "meal voucher."

What data do you collect?

If you sell gift cards online, you inevitably collect personal data: the buyer's name, email address, possibly the recipient's name, and a postal address for physical delivery.

This data is subject to the General Data Protection Regulation (GDPR). In practical terms, you must:

Inform the buyer of the data collected, its purpose (order fulfilment, card delivery), and the retention period
Limit collection to strictly necessary data
Secure storage (protected database, restricted access)
Enable the exercise of data rights (access, rectification, deletion)

These obligations are set out in your privacy policy, which must be accessible from your sales website. For restaurants looking to leverage their gift card data for CRM and loyalty purposes, GDPR compliance is an essential prerequisite.

The legal basis for processing

For gift card sales, the legal basis is performance of a contract (Article 6(1)(b) of the GDPR). You do not need the customer's explicit consent to process their data strictly within the scope of the order.

However, if you wish to use the email address to send subsequent marketing communications (newsletters, promotions), you must obtain specific and informed consent (opt-in), in accordance with Article L. 34-5 of the French Postal and Electronic Communications Code.

Special cases and pitfalls to avoid

Gift cards vs. meal vouchers: don't confuse the two

A meal voucher (Ticket Restaurant, Edenred, Swile, etc.) is subject to specific regulations (French Labour Code, Articles L. 3262-1 et seq.): daily spending cap, restricted to meals, and in some cases limited to two vouchers per meal.

A restaurant gift card is not a meal voucher. It is not subject to the same caps and can cover the entire bill, including alcoholic beverages. It is important not to treat them in the same way in your till system.

Gift cards vs. holiday vouchers: two separate frameworks

Similarly, holiday vouchers (issued by the ANCV, France's national holiday voucher agency) have their own legal framework. If you accept holiday vouchers, you are contracted with the ANCV and bound by their conditions. Your in-house gift cards fall outside this scheme.

Resale of gift cards by third parties

If you find that your gift cards are being resold on secondary marketplaces (such as eBay, Vinted, or similar platforms), you generally have no legal means to prohibit it entirely. A gift card is a movable asset that can be transferred. However, you can specify in your T&Cs whether the card is "transferable" (which is the default for a gift) or "non-transferable and issued to a named holder" if you wish to restrict its use. In the latter case, you would need to verify the holder's identity, which can be impractical during service.

Loss or theft of the card

Unless you have committed otherwise, you are under no obligation to refund or reissue a lost or stolen gift card. However, if your system is digital with a unique reference number, you can offer to block and reissue the card — a genuine selling point for digital gift cards.

Compliance checklist for your restaurant gift cards

Before launching or reviewing your gift card programme, make sure you tick every box:

T&Cs drafted and accessible (online and/or at the point of sale)
Validity period clearly displayed on the card and in the T&Cs
Mandatory information present: issuer, amount, expiry date, terms of use
Accounting treatment configured: separate customer advance account, VAT at the point of redemption
Till system set up to record gift card sales and redemptions separately
Invoices ready for B2B sales (works councils, businesses) with the appropriate VAT statement
Privacy policy up to date if selling online (GDPR)
Right of withdrawal stated for distance sales
Loss/theft policy defined and communicated
Expiry accounting procedure in place for breakage

If you use a digital solution for your restaurant gift cards, most of these points can be automated: unique reference numbers, balance tracking, automatic expiry, and T&Cs sent by email.

Conclusion: turning regulatory requirements into a competitive advantage

Gift card regulations for restaurants may seem dense, but they rest on a few straightforward principles: inform the customer clearly, declare VAT correctly at the right time, and document your terms of sale.

Here are three actions to take this week:

Draft (or update) your T&Cs specifically for gift cards. A one-page document is enough. Cover the validity period, terms of use, refund policy, and loss/theft.
Review your accounting setup with your accountant. Make sure gift card sales are recorded as customer advances (not as immediate revenue) and that VAT is collected at redemption.
Train your front-of-house team. Your staff need to know how to explain the validity period, handle a customer whose card has expired (with tact), and correctly process a gift card payment at the till.

A gift card programme that is legally sound builds trust, prevents disputes, and positions you as a thorough professional — whether dealing with an individual customer or a works council looking for a reliable partner for its year-end gifts. It is also a way to reduce your customer acquisition costs while generating immediate cash flow.

Compliance is not a brake on commercial creativity. It is the foundation that allows you to grow your gift card sales with complete peace of mind.

Restaurant Gift Card Regulations: What You Need to Know

What French law says about restaurant gift card regulations

The general framework: vouchers and electronic money