Value added tax
Value added tax is also paid out of Research Council research grants, provided that the VAT remains to be paid by the funding recipient and the recipient is not entitled to deduct VAT costs in its accounting. If the VAT does not remain as a final cost for the organisation, it cannot be included in the costs of a project funded by the Research Council. The funding recipient must not be overcompensated by the payment of costs that will not remain as its final costs
Please check the VAT practice from the finance administration of your organisation.
In the online application (under Funding for the project), answer the question: Other costs include VAT: Yes/No.
YES:
- VAT can be included in the cost estimate when the site of research is a university, a municipality, central government agency, government research institute or public body (i.e. the VAT remains as a final cost for the organisation).
- In the application (under Funding for the project, Cost estimate), enter the project’s estimated costs including VAT.
NO:
- VAT is not included in the cost estimate when the site of research is an organisation engaged in business activities, such as a university hospital, hospital district or business company (i.e. the VAT is deductible).
- In the application (under Funding for the project, Cost estimate), do not include VAT, that is, enter the project’s estimated costs without VAT.
