Indirect Costs (Overheads) in Horizon Europe
In Horizon Europe, indirect costs (overheads) are reimbursed using a flat-rate of 25% of eligible direct costs. This calculation applies to:
- A. Personnel costs
- C. Purchase costs (including travel, equipment, and other goods and services)
There is no need to justify or provide supporting documents for indirect costs. Only direct costs require documentation such as invoices, contracts, or timesheets.
This methodology is the same as in Horizon 2020.
Exceptions & Special Cases
- B. Subcontracting and D.1 Financial support to third parties are excluded from the calculation of indirect costs.
- Volunteer costs and other specific cost categories may also be excluded if specified in the Grant Agreement.
Internally Invoiced Goods and Services (D.2)
For D.2 Internally Invoiced Goods and Services, beneficiaries may declare actual indirect costs, even if they exceed the 25% flat rate—but only if:
- This approach is based on the beneficiary’s usual cost accounting practices, and
- It is explicitly allowed in the call conditions.
Definition
Internally invoiced goods and services refer to items provided within the beneficiary’s own organisation and used directly for the action. These are costed using internal accounting systems and must be:
- Recorded in the accounts with actual costs, either through direct measurement or cost drivers.
- Calculated in a consistent, objective manner, based on usual accounting practices.
- Excluding any costs already covered under other categories or declared ineligible.
These costs are not included in the base used to calculate the 25% flat-rate for indirect costs.
