Eligible Costs in Erasmus+ Projects: The Complete Financial Guide
Staff costs, travel, equipment, subcontracting — what can and cannot be charged to an Erasmus+ grant? This definitive guide covers all budget categories, flat-rate rules, and the most common audit findings.
Financial compliance is one of the most challenging aspects of managing an Erasmus+ project. Misclassifying costs — or failing to document them properly — can lead to audit findings, rejected expense claims, and even recovery orders.
The burden of proof lies entirely with the beneficiary. If you cannot document a cost with appropriate evidence (invoices, timesheets, contracts), it will not be accepted during an audit.
Staff Costs
- —Permanent staff: Salary × time spent on project, supported by timesheets.
- —For unit cost projects (KA2): Fixed daily rates per country — no individual timesheets required.
- —Freelancers/self-employed: NOT eligible as staff costs — must go under Subcontracting.
Travel and Subsistence Costs
- —Travel must be the most economical option and directly linked to a project activity.
- —Distance calculator determines travel grants for unit cost projects.
- —Subsistence allowances: fixed amounts per country per day set by the Commission.
- —Business class travel not eligible without specific justification.
Equipment Costs
- —Only the depreciation corresponding to the project period and usage percentage may be charged.
- —Equipment purchased exclusively for the project may be charged at full purchase cost if justified.
- —Second-hand equipment: eligible only if price does not exceed fair market value.
Subcontracting
- —Need must be stated in Description of Action and justified in the budget.
- —Competitive procurement procedures required (at least 3 offers above certain thresholds).
- —Subcontracting the entire project coordination is NOT permitted.
Indirect Costs (Overheads)
KA2 Cooperation Partnerships: a flat rate of 7% of direct eligible costs (excluding subcontracting) is applied automatically. No documentation required.
What CANNOT Be Charged to an Erasmus+ Grant
- —Recoverable VAT
- —Return on capital or dividends
- —Debt and debt service charges
- —Double financing (costs already declared under another EU grant)
- —Costs incurred outside the implementation period
- —Excessive or reckless expenditure
Most Common Audit Findings
- —Missing or incomplete timesheets for staff costs
- —Travel not the most economical option
- —Equipment charged at full cost without correct depreciation
- —Subcontracts without competitive tendering documentation
- —VAT charged by organisations with VAT recovery rights
Managing an Erasmus+ project budget? Our team provides hands-on financial management support — from budget planning to final reporting and audit preparation. Contact us for a free consultation.
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