In order to 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 an economic, efficient and effective manner
- determined according to the usual accounting principles of the beneficiary
- indicated in Annex I of the Grant Agreement
Identifiable indirect taxes (including non-deductible value added tax) paid by the beneficiary which are not refunded according to national legislation are eligible.
Ineligible costs include especially provisions for future losses or debts, currency exchange losses, costs related to return on capital, costs incurred by other EU-projects or programmes, debt and debt service charges as well as excessive or reckless expenditure.
In the project proposal and reports, costs are classified via the following cost categories:
Further information on the eligibility of costs may be found in the following documents: