Indirect costs (overheads) in Horizon Europe are calculated as a flat-rate of 25% of the eligible direct costs (A. Personnel costs and C. Purchase costs including travel, equipment and other goods and services). There is no need to justify indirect costs, only direct costs need proofs (invoices, timesheets, contracts, etc.).
This is the same as in Horizon 2020. However, for internally invoiced goods and services (cost category D.2), there is the possibility to accept actual indirect costs, that could be higher than 25%. This needs to be done on the basis of usual accounting practices. Other costs categories such as B. Subcontracting and D.1 Financial support to third parties are not eligible for indirect costs.
AMGA Article 6.2 – E Indirect costs
Indirect costs (overheads) in Horizon Europe will be reimbursed at the flat-rate of 25% of the eligible direct costs (categories A-D, except volunteers costs, subcontracting costs, financial support to third parties and exempted specific cost categories, if any).
AMGA Article 6.2 – D.2 Internally invoiced goods and services
Costs for internally invoiced goods and services directly used for the action may be declared as unit cost according to usual cost accounting practices, if and as declared eligible in the call conditions, if they fulfill the general eligibility conditions for such unit costs and the amount per unit is calculated:
- using the actual costs for the good or service recorded in the beneficiary’s accounts, attributed either by direct measurement or on the basis of cost drivers, and excluding any cost which are ineligible or already included in other budget categories; the actual costs may be adjusted on the basis of budgeted or estimated elements, if they are relevant for calculating the costs, reasonable and correspond to objective and verifiable information and
- according to usual cost accounting practices which are applied in a consistent manner, based on objective criteria, regardless of the source of funding.
‘Internally invoiced goods and services’ means goods or services which are provided within the beneficiary’s organization directly for the action and which the beneficiary values on the basis of its usual cost accounting practices.
This cost will not be taken into account for the indirect cost flat-rate.