Funding mainly addresses personnel, expenses, as well as travel and subsistence. Please remember that the KITT4SME Open Calls are Cascade Funding for Horizon 2020 projects. In this sense, the criteria for eligibility of costs as mentioned in this Financial Guide (https://ec.europa.eu/social/BlobServlet?docId=15128&langId=en) apply. Keep in mind that although the grants are given in lump sum, EU Authorities may audit you in the future.
The general criteria for the eligibility of costs, as outlined in Section 4.2 of the previous EU Financial Guide are:
“In order to be eligible for EU funding, costs must meet the following criteria:
- be incurred by the beneficiary during the duration of the action, with the exception of costs relating to final reports and audit certificates;
- be indicated in the estimated overall budget of the action attached to the grant agreement;
- be necessary for the implementation of the action which is the subject of the grant;
- be identifiable and verifiable, in particular being recorded in the accounting records of the beneficiary and determined according to the applicable accounting standards of the country where the beneficiary is/are established and according to the usual cost-accounting practices of the beneficiary;
- comply with the requirements of applicable tax and social legislation;
- be reasonable, justified and comply with the principle of sound financial management, in particular regarding economy and efficiency.
If applicable under the call for proposals, costs incurred by entities affiliated to a beneficiary will be eligible provided:
- the concerned entities are identified in the grant agreement
- they abide by the rules applicable to the beneficiary under the grant agreement with regard to eligibility of costs and rights of audits by the Commission, the European Anti-Fraud Office and the Court of Auditors.
Value added tax (VAT) is considered as eligible13 where it is not recoverable under the applicable national VAT legislation and is paid by a beneficiary other than a non-taxable person as defined in the first subparagraph of Article 13(1) of Directive 2006/112/EC14 on the common system of value added tax.
If VAT is not eligible in view of the nature of all or part of the activities funded by a specific call for proposals, it will be clearly announced in the text of the call.
The successful applicant/s must take care to avoid any unnecessary or unnecessarily high expenditure.
The beneficiary’s internal accounting and auditing procedures must permit a direct reconciliation of the costs and revenue declared in respect of the action with the corresponding accounting statements and supporting documents.
Documentation justifying costs must be kept by the beneficiary for five years following the Commission’s final payment.”