Indirect costs are costs that are necessary for implementing the project but cannot be directly attributed to a specific project. Typical examples include rent and utilities, office infrastructure and equipment, telephone, IT, and administrative costs.
Principles
All Beneficiaries receive a flat rate of 25% of their eligible direct costs as compensation for indirect costs. The following applies:
- The flat rate is automatically calculated in the financial report.
- No supporting documents are required for indirect costs (as the direct costs forming the basis for the calculation must already be justified).
- The actual level of indirect costs is not relevant (i.e. if the beneficiary’s actual indirect costs exceed the flat rate, the difference must be covered by the beneficiary).
- As indirect costs are part of the total eligible project costs, they are also subject to the applicable funding rate of the beneficiary (e.g. 100%, 70%).
Exceptions
The following costs are excluded from the basis for calculating the 25% flat rate:
- Subcontracting costs
- Financial support to third parties (FSTP, “cascade funding”)
- Cost categories that already include indirect costs (e.g. internally invoiced goods and services)
Further Information