Yes, VAT is eligible in Horizon Europe, except when the beneficiary can deduct or refund the VAT.

References

AMGA 6.3 Ineligible costs and contributions

The following costs or contributions are ineligible:

• costs or contributions that do not comply with the conditions set out above (Article 6.1 and 6.2), in particular:
• costs related to return on capital and dividends paid by a beneficiary
• debt and debt service charges
• provisions for future losses or debts
• interest owed
• currency exchange losses
• bank costs charged by the beneficiary’s bank for transfers from the granting authority
• excessive or reckless expenditure
• deductible or refundable VAT (including VAT paid by public bodies acting as public authority)
• costs incurred or contributions for activities implemented during grant agreement suspension (see Article 32)