Aid intensity and eligible costs
Article 7
1. For the purpose of calculating aid intensity and eligible costs, all figures used shall be taken before any deduction of tax or other charge. The eligible costs shall be supported by documentary evidence which shall be clear, specific and contemporary. Value added tax (VAT) shall not be eligible for aid, except where it is non-recoverable under national legislation. 2. Where aid is granted in a form other than a grant, the aid amount shall be the gross grant equivalent of the aid. 3. Aid payable in several instalments shall be discounted to its value on the date of granting the aid. The eligible costs shall be discounted to their value on the date of granting the aid. The interest rate to be used for discounting purposes shall be the discount rate applicable on the date of granting the aid. 4. Where aid is granted by means of tax advantages discounting of aid tranches shall take place on the basis of the discount rates applicable on the various dates when the tax advantage takes effect. 5. Where aid is granted to make good the damage or income foregone it shall be reduced by any costs not directly incurred due to the event. 6. Where aid is granted in the form of repayable advances which, in the absence of an accepted methodology to calculate their gross grant equivalent, are expressed as a percentage of the eligible costs and the measure provides that in case of a successful outcome of the project, as defined on the basis of a reasonable and prudent hypothesis, the advances will be repaid with an interest rate at least equal to the discount rate applicable on the date of granting the aid, the maximum aid intensities laid down in Chapter III may be increased by 10 percentage points without exceeding a maximum aid intensity rate of 100 % of the eligible costs. 7. The eligible costs shall comply with the requirements of Articles 53 to 57 of Regulation (EU) 2021/1060 of the European Parliament and of the Council ( 22 ) .