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FP6 Financial Info & FAQs --> Project --> Costs --> Non-Eligible Costs

Costs calculated in accordance with other conventions e.g. "current costs", "notional rents", "opportunity costs", etc. are not eligible. Therefore, no notional costs should be charged, e.g. in respect of revaluation of buildings or capital equipment, estimated or imputed interest, estimated rentals, etc.


Costs, which are not eligible, include in particular:


·                         "return on capital employed", including dividends and other distributions of profits

·                         provisions for possible future losses or charges

·                         costs related to any interest

·                         provisions for doubtful debts 

·                         unnecessary or ill-considered expenses

·                         marketing, sales and distribution costs for products and services, unless they are directly related to and necessary for the action

·                         indirect taxes and duties, including VAT 

·                         any cost incurred or reimbursed from other sources such as in respect of another Community project

·                         leasing costs (or part thereof) where the leasing arrangement has the effect of unnecessarily increasing the charge made to the project (e.g. where the cost without interest of the leased equipment is higher than if purchased).


Please see:  for more on this Topic.


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