The no-profit rule applies to all actions in Horizon 2020. The European Commission defines certain receipts, that have to be declared in the final report.

The following are considered receipts in Horizon 2020 actions:

  • income generated by the action (e.g. from conference fees, sale of equipment)
  • financial contributions by third parties specifically to be used for the action
  • in-kind contributions by third parties free of charge and specifically to be used for the action used to cover eligible costs

 

The following examples are not considered receipts:

  • income generated by exploiting the action’s results (e.g. income from the sale of intellectual property),
  • financial contributions by third parties that may be used to cover non-eligible costs
  • financial contributions by third parties specifically to be used for the action without obligation to repay any unused amount at the end of the action
  • financial contributions by one partner to another within the same action
  • in-kind contributions by third parties free of charge not specifically to be used for the action

 

Receipts must be indicated in the final report. When paying the balance the European Commission/funding agency will take into account whether the receipts have resulted in a profit at consortium level (NOT at beneficiary level!):
If the EU grant plus receipts are higher than the total eligible costs of the action, the grant will be reduced.

The consortium may specify in the Consortium Agreement e.g. that the grant reduction is borne by the partner who has generated the receipts.

More detailed information can be found in the Annotated Grant Agreement (AGA), Article 5.3.

Contact

Mag. Martin Baumgartner
Mag. Martin Baumgartner
National Contact Point: Legal and financial matters
T +43 5 7755 4008
martin.baumgartner@ffg.at
Mag. Tamara-Katharina Mitiska
Mag. Tamara-Katharina Mitiska
Expert: Legal and financial matters
T +43 5 7755 4009
tamara-katharina.mitiska@ffg.at
Robert Worel
Robert Worel
Assistant
T +43 5 7755 4611
robert.worel@ffg.at