Top be considered eligible for reimbursement by the European Commission project costs need to be: 

• actual and incurred by the beneficiary during the project
• contributing to the objectives of the project in a economic, efficient and effective manner
• determined according to the usual accounting principles of the beneficiary
• indicated in Annex I of the Grant Agreement

Eligible costs may not include any identifiable indirect taxes (including value added tax) or duties. 

When calculating the project budget as well as for the periodic reports, the project costs have to be assigned to the various activity types (i.e. research activities, demonstration, training, management, other etc.) of the work packages.

In the budget calculation as well as in the periodic reports, the costs linked to the activity types have to be further subdivided in the following cost types:

• personnel costs
• other direct costs (e.g. travel or equipment costs)
• subcontracting
• indirect costs