Overview of eligible costs in Horizon 2020

The Grant Agreement (GA) contains detailed provisions about the eligibility of costs in Horizon 2020. It specifies the criteria for all eligible costs and defines special requirements for the individual cost categories. It is wise to familiarise yourself with these rules at an early stage in order to avoid errors and mistakes in reporting.

The costs must be broken down according to the following standard budget categories at the end of each reporting period:

Personnel costs
Subcontracting
Other direct costs: travel costs, equipment/infrastructure, other goods/services
Indirect costs

Accounting is usually based on “actual costs” in line with the following requirements:

All actual costs must …

be actually incurred by the participant (no estimated/imputed/budgeted costs),
be incurred in the project period (exceptions: travel costs for kick-off meeting; costs of final report submitted within 60 days of the end of the project),
be included in the budget (i.e. indicated in the estimated budget (= Annex 2 of the GA); more information about budget transfers),
be incurred in connection with the action and necessary for its implementation,
be identifiable and verifiable and recorded in the participants' accounts in accordance with the applicable accounting standards and its usual cost accounting practices,
comply with the applicable national laws on taxes, labour and social security, and
be reasonable and justified and comply with the principle of sound financial management (in particular regarding economy and efficiency).

The following costs are not eligible:

provisions for future losses or debts
interest owed
currency exchange losses
deductible VAT (Please note: However, VAT is an eligible cost in Horizon 2020 if the participant is not entitled to deduct input tax. More information can be found under category "Links & Downloads").

In certain cases defined in the Grant Agreement costs may also be declared as fixed “unit costs”. Evidence must be provided that the “units” are related to the project, necessary for implementing the project and used in the project period.

Indirect costs are reimbursed at a flat rate in Horizon 2020. For these costs, no record-keeping is necessary. Reporting via lump sums is not foreseen in standard projects (RIA, IA, CSA).

The costs per project must not exceed the maximum grant amount specified in the GA. If the requested financial contribution of a beneficiary exceeds a specific threshold (EUR 325,000 in “actual costs” and “average personnel costs”) a Certificate on the Financial Statements (CFS) issued by a qualified auditor must be submitted together with the final report.

In addition to the costs incurred by the beneficiaries, the eventual receipts of the project must also be reported. Please note that receipts may lead to a reduction of the grant.

Cost reporting and signing of the financial statements by the "Financial Signatory (FSIGN)" of the organisation are carried out electronically in the Funding & Tender Opportunities Portal.

More detailed information about eligible costs and cost reporting in Horizon 2020 can be found ...