Costs of simple programmes eligible for Union funding
Article 4
1. Costs eligible for Union funding shall be costs which meet all of the following criteria: (a) they are actually incurred by the proposing organisation during the implementation of the programme, with the exception of costs relating to final reports and evaluation; (b) they are indicated in the estimated overall budget of the programme; (c) they are necessary for the implementation of the programme which is subject of co-financing; (d) they are identifiable and verifiable, in particular being recorded in the accounting records of the proposing organisation and determined according to the applicable accounting standards of the Member State where the proposing organisation is established; (e) they comply with the requirements of the applicable tax and social legislation; (f) they are reasonable, justified, and comply with the principle of sound financial management, in particular regarding economy and efficiency. 2. The call for proposals referred to in Article 8(2) of Regulation (EU) No 1144/2014 shall specify the categories of costs considered as eligible for Union funding. However, the following categories of costs shall be eligible: (a) by way of derogation from Article 19(4) of Regulation (EU) No 907/2014, costs relating to an advance guarantee provided by a bank or financial institution and lodged by the proposing organisation where that guarantee is required in accordance with Article 15(6) of Regulation (EU) No 1144/2014; (b) costs relating to external audits where such audits are required in support of the requests for payments; (c) personnel costs limited to salaries, social security charges and other costs included in the remuneration of personnel assigned to the implementation of the programme, arising from the applicable national law or from the employment contract, the costs for natural persons working under a direct contract with the proposing organisation other than an employment contract or seconded by a third party against payment; (d) value added tax (‘VAT’) 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 Council Directive 2006/112/EC ( 14 ) ; (e) the costs of studies to evaluate the results of promotional and information measures, as referred to in Article 15(4) of Regulation (EU) No 1144/2014, performed by an independent and qualified external body. 3. Indirect eligible costs shall be determined by applying a flat rate of 4 % of the total direct eligible personnel costs of the proposing organisation.