Version For Applicants and Beneficiaries-Final - v01

EUROPEAN COMMISSION
Innovation and Networks Executive Agency
Guidelines on the Eligibility of Costs

under the Connecting Europe Facility
December 2018
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Please note that this Guide is for information purposes only. It has no legal value and it does not
supersede the rules and conditions laid out in the relevant legal bases.
Guidelines on the Eligibility of Costs under the Connecting Europe Facility (December 2018)
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Contents
1. INTRODUCTION .......................................................................................................... 4
2. ELIGIBILITY OF COSTS – GENERAL REQUIREMENTS ................................... 4
3. ELIGIBILITY OF COSTS – SPECIFIC CATEGORIES OF COSTS ..................... 8

3.1. Personnel Costs (Article II.19.2(a) MGA) .................................................................... 9
3.1.1. General requirements ........................................................................................................ 9
3.1.2. Staff costs versus implementation contracts ................................................................... 10
3.1.3. Time recording system.................................................................................................... 10
3.1.4. Calculation of productive hours ...................................................................................... 11
3.1.5. Calculation of hourly rates .............................................................................................. 12
3.1.6. Flat rates for SME owner managers who do not receive a salary ................................... 13
3.1.7. Selected categories of staff-related costs ........................................................................ 14
3.2. Costs of travel and related subsistence allowances (Article II.19.2(b) MGA) ......... 15
3.3. Costs of Purchase / Depreciation and Lease of Equipment, Infrastructure
and Other Assets (Article II.19.2(c) MGA)................................................................. 16
3.3.1. Full costs of purchase ..................................................................................................... 16
3.3.2. Costs of depreciation ...................................................................................................... 16
3.3.3. Leasing – specific case ................................................................................................... 17
3.4. Costs of Consumables and Supplies (Article II.19.2(d) MGA) ................................. 18
3.5. Costs Arising from Requirements Imposed by the Grant Agreement
(Article II.19.2(e) MGA) ............................................................................................... 18
3.6. Costs of Implementation Contracts and Subcontracts (Articles II.19.2(f),
II.9 and II.10 MGA) ...................................................................................................... 19
3.7. Financial Support to Third Parties (Articles II.19.2(g) and II.11 MGA) ................ 21
3.8. Taxes, VAT (Article II.19.2(h) MGA) ......................................................................... 22
3.8.1. VAT under the CEF in general ....................................................................................... 23
3.8.2. VAT under the CEF Transport Cohesion envelope ........................................................ 25
3.8.3. VAT eligibility under CEF – flowchart .......................................................................... 26
3.9. Selected Specific Cases ................................................................................................. 26
3.9.1. Reimbursement of bid preparation costs......................................................................... 26
3.9.2. Legal support .................................................................................................................. 26
3.9.3. Financial incentives to accelerate action completion...................................................... 27
3.9.4. Costs related to the grant agreement preparation (GAP) ................................................ 27
3.9.5. Penalties (liquidated damages) charged by beneficiaries to (sub)contractors................. 28
3.10. Indirect Costs ................................................................................................................ 28
4. INELIGIBLE COSTS .................................................................................................. 29
LIST OF ANNEXES: ................................................................................................................... 32
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E
1. INTRODUCTION
The main purpose of these guidelines is to collect in a single document the criteria for
eligibility of costs established by the Financial Regulation 1, the Connecting Europe
Facility Regulation ("CEF Regulation") 2, the different Work Programmes and Calls for
Proposals and the guidelines and interpretative notes issued by the responsible services of
the Commission and INEA, as well as the clarifications provided by INEA in its
responses to Frequently Asked Questions in the context of particular Calls for Proposals.
These guidelines address only the following forms of financial aid under the CEF
Programme: (i) reimbursement of a percentage of the eligible costs actually incurred and
(ii) reimbursement of unit costs for personnel, and (iii) the flat-rate funding of indirect
cost (applicable under CEF Telecom). They are applicable across all sectors under the
CEF programme.
2. ELIGIBILITY OF COSTS – GENERAL REQUIREMENTS
Based on the Financial Regulation 3, the current Model Grant Agreement ("MGA")
defines 'eligible costs' in Article II.19.1 as costs actually incurred which meet all of the
criteria indicated below. Those criteria are cumulative: if a cost does not comply with all
of them, such cost is ineligible.
(a) The costs must be incurred by the beneficiary, its affiliated entity (designated
in Article 7 of the Grant Agreement) and/or its implementing body
(designated in Article 8 of the Grant Agreement).
Costs incurred by affiliated entities and implementing bodies are eligible under the
same eligibility conditions which apply to costs incurred by beneficiaries 4. For this
purpose, the affiliated entities and the implementing body must also accept the
right of checks and audits by the Commission, OLAF and the European Court of
Auditors.
Affiliated entity: (i) an entity forming the beneficiary (where several entities satisfy
the criteria for being awarded a grant and together form the beneficiary), or (ii) an
1
Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on
the financial rules applicable to the general budget of the Union, amending Regulations (EU) No
1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No
1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing
Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.07.2018, p. 1) – hereinafter referred to as "Financial
Regulation 2018". Throughout these guidelines we refer to the Financial Regulation 2012 and, in parallel,
to the new Financial Regulation 2018.
2
Regulation No 1316/2013 of the European Parliament and of the Council of 11 December 2013
establishing the Connecting Europe Facility, amending Regulation (EU) No 913/2010 and repealing
Regulations (EC) No 680/2007 and (EC) No 67/2010 (OJ L 348 20.12.2013, p. 129).
3
Article 126 of Financial Regulation 2012; Article 186 of Financial Regulation 2018.
4
Any references to beneficiaries in these guidelines shall also be understood as references to affiliated
entities and implementing bodies designated in the grant agreement.
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entity that satisfies the eligibility criteria, does not fall into the exclusion situations
and has a link (in particular legal or capital) with the beneficiary, which is neither
limited to the action nor established for the sole purpose of its implementation 5.
Example (affiliation links):
Below is a (non-exhaustive) list of situations which may point to an affiliation

link (and which still have to be assessed on a case-by-case basis):
• if several entities, instead of obtaining a grant themselves, create an European

Economic Interest Grouping (EEIG) which becomes the beneficiary, then
such entities (members of the EEIG) may qualify as affiliated entities;
• a company directly or indirectly controlled the beneficiary (subsidiary /

granddaughter company) may qualify as an affiliated entity;
• a company directly or indirectly controlling the beneficiary (parent /

grandparent company) may qualify as an affiliated entity;
• a company under the same direct / indirect control as the beneficiary (sister
company) may qualify as an affiliated entity.
Implementing body: a public or private undertaking or body designated by a

beneficiary, where the beneficiary is a Member State or an international
organisation, to implement the action. Such designation shall be decided upon by
the beneficiary under its own responsibility and, if it requires the award of a
procurement contract, in compliance with the applicable public procurement rules 6.
(b) The costs must be incurred in the period set out in Article 2.2 MGA (eligibility
period), with the exception of costs relating to the request for payment of the
balance and the corresponding supporting documents referred to in Article II.23.2
MGA (final reports and audits certificates, and ex-post climate change impact
assessments where applicable).
The costs must be generated during the eligibility period of the action, which does
not necessarily mean that they have to be paid by the beneficiary or recorded in its
accounting books during that lifetime. Costs of contracts for goods, works or
services or of subcontracts are considered to be incurred when the contract or
subcontract (or a part of it) is executed, i.e. when the goods, works or services
(including studies) are supplied, delivered or provided.
Example (advance or down payments):

The action involves construction works. The beneficiary (or its contractor
entrusted with such works) needs to purchase building materials which must be
pre-paid in advance before delivery. The costs are not considered incurred when
5
6
Article 2(11) of the CEF Regulation.
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such pre-payment occurs, as the supplies have not yet been delivered. They will
only be incurred when the supplies are delivered to the beneficiary (even if they
have not been used yet at the moment of the payment request). For instance,
equipment might be delivered and thus incurred on one of the last days of the
Action, but only installed a few days after the end of the Action. In this case the
costs for the equipment are eligible, but any installation costs incurred after the
Action end date are not. The eligible costs correspond to the reporting period in
which such delivery took place. In any event it needs is to be kept in mind that
the supplies must be necessary for the Action.
Some costs may not have been paid when the request for payment of the balance is
sent, in particular because the beneficiary is waiting for the balance of the grant to
be able to pay this expenditure. This situation is acceptable if the beneficiary has
provided reassurance that a debt (invoice or equivalent) exists, even if registered
after the implementation period and before the request for the payment of the
balance has to be made, for services or goods actually supplied during the lifetime
of the action and the final cost is known.
Examples (costs paid after the action completion date but incurred earlier):
− Costs of services or equipment supplied to carry out the action may be

invoiced and paid after the action has been completed, provided that the
service/goods were in fact supplied during the lifetime of the action.
Retentions: part of purchase price for works or supplies which was not yet paid
by the beneficiary and will only be paid when the beneficiary carries out a final
inspection and accepts the works or supplies. It is a percentage of the price (e.g.
10%) which is retained to secure any claims vis-à-vis the contractor or supplier
for defects of works or supplies. If the works or supplies were performed /
delivered within the action lifetime, their costs will be eligible, including such
retained amounts which are paid after the final inspection is done and the works
or supplies have been accepted.
− Staff costs will be considered incurred when the work /task for which the
person is paid is carried out, even if the person has not been paid yet.
No costs incurred before the starting date of the action may be considered eligible.
Examples (costs incurred before the start date of the action):
− Costs incurred for the preparation of the application for funding are not
eligible as they were incurred before the start date of the action (and are not
necessary for its implementation).
− The costs of a study supplied 5 months before the start date of the action are
not eligible even if they are paid during the eligibility period.
(c) The costs must be indicated in the estimated budget of the action set out in
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Annex III.
Cost claims cannot include costs not linked to Activities included in the estimated
budget.
(d) The costs must be incurred in connection with the action as described in Annex I
and be necessary for its implementation; in particular, for the costs of contracts for
goods, the goods are supplied in a Member State or in any other country where the
action is implemented as described in Annex I; for the costs of contracts for works,
the works are delivered in a Member State or in any other country where the action
is implemented as described in Annex I; for the costs of contracts for services
(including studies), the services provided concern a Member State or any other
country where the action is implemented as described in Annex I.
To be considered eligible, all costs must be connected with the subject matter of the
agreement and necessary for the implementation of the supported activities and the
achievement of the expected results. The beneficiary should be able to demonstrate
the link between a given cost and the corresponding activity in Annex I.
Examples (costs with no direct connection to the action):
− The purchase or lease of a car or of IT equipment follows the general rules

for purchase / lease of equipment, as described in Section 3.3 below.
However, a new computer or car for a staff member of a beneficiary will
not be an eligible cost if it has no direct connection with the action.
− Membership fees paid to a professional association will not be eligible if

the membership is not necessary for the implementation of the action.
(e) The costs must be identifiable and verifiable, in particular recorded in the
accounting records of the beneficiary and determined according to the applicable
accounting standards of the country where the beneficiary is established and in
accordance with the usual cost accounting practices of the beneficiary.
Any beneficiary, affiliated entity or implementing body must enter costs in its
accounts in accordance with the applicable rules. Supporting documents must be
available for all costs, since costs which cannot be justified are not to be considered
eligible.
This approach will be applied by auditors when reconciling cost claims with the
beneficiary's accounts.
Example (costs incurred by EEIG members without a formal designation in

the grant agreement):
When dealing with private companies, EEIGs or other forms of cooperative

work, please bear in mind that only costs registered in the accounts of the legal
entities named in the grant agreement as a beneficiary, affiliated entity or
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implementing body can be considered as eligible costs.
Where an EEIG (or a similar entity) is a beneficiary under the grant agreement,
this does not imply that the EEIG members can incur eligible costs. If such
members wish to claim costs, they will need to be individually designated in the
grant agreement as beneficiaries, affiliated entities or implementing bodies.
Where the member of an EEIG has incurred costs and has not been designated in
the grant agreement, these costs can be acceptable if they are invoiced to the
EEIG (beneficiary), but without any profit margin. The Agency will pay to the
beneficiary and not to the member of the EEIG.
(f) The costs must comply with the requirements of applicable tax and social
legislation.
(g) The costs must be reasonable, justified, and comply with the principle of sound
financial management, in particular regarding economy and efficiency.
The concept of correctly matching estimated costs and expected achievements is

essential in terms of sound financial management: the beneficiary must be able to
justify the resources used to attain the objectives set in the grant agreement. This
should be analysed by reading the request for payment from the perspective of the
technical annex (Annex I).
Example (unreasonable / unjustified costs):
The cost of a trip to the United States to explain the results of a project
implemented in the EU will most likely not be reasonable and justified, even if
one of the activities was the dissemination of results.
(h) In principle, the costs must be direct costs, i.e. specific costs which are directly
linked to the implementation of the action and can therefore be attributed directly
to it (Article II.19.3 MGA).
Under CEF Transport and CEF Energy, indirect costs are ineligible.
Under CEF Telecom: indirect costs calculated as 7% of the total eligible direct
costs minus subcontracting costs (see Article II.10 MGA) and costs of financial
support to third parties (Article II.11 MGA) are eligible.
3. ELIGIBILITY OF COSTS – SPECIFIC CATEGORIES OF COSTS
This section discusses certain categories of costs, either specifically indicated in Article
II.19.1 MGA, or for which additional guidance is required.
The categories of costs addressed in this section must comply with the general
conditions for eligibility of costs as described in Section 2 above.
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3.1. Personnel Costs (Article II.19.2(a) MGA)
3.1.1. General requirements
Personnel costs may be considered eligible if the given staff member fulfils all the
following conditions: (i) works under an employment contract with the
beneficiary or an equivalent appointing act, (ii) is assigned to the action, and
(iii) the personnel costs are in line with the beneficiary's usual policy on
remuneration.
Those costs include actual salaries plus social security contributions and
other statutory costs included in the remuneration. They may also comprise
additional remunerations, including payments on the basis of supplementary
contracts (regardless of the nature of such contracts), provided that they are paid
in a consistent manner whenever the same kind of work or expertise is required,
independently from the source of funding used.
Important: costs of staff under non-employment contracts or seconded
An individual (natural person) can be assigned to the action not only based on
an employment contract, but also on the basis of e.g. a civil contract, a free-
lance contract, an expert contract, a service contract with self-employed
person (in-house consultant) or a secondment to the beneficiary against
payment 7. The costs of such individuals may be included in the personnel
costs if they comply with the general cost eligibility criteria (i.e. they are
incurred by the beneficiary / affiliated entity / implementing body, they are
reasonable, necessary for the action implementation, etc.) and if, in addition,
all of the following conditions are met:
− they work under conditions similar to those of an employee (in particular

as regards the organisation of work, performance of tasks, place where
tasks are performed);
− the result of their work belongs to the beneficiary (unless exceptionally

agreed otherwise); and
− their costs do not differ significantly from the costs of staff performing
similar tasks under an employment contract with the beneficiary.
A particular form of staff costs are "civil contracts" in some Member States.
They concern either regular personnel entitled to a complementary payment or
external experts, having concluded a time-limited "civil" contract for their
input to a specific project. These costs can be assimilated to personnel costs
subject to fulfilment of the three conditions mentioned above and the
following additional conditions:
− the costs of "civil" contracts are declared consistently under any project
7
A secondment is a temporary transfer of a person from his/her regular position to another position for a
certain period of time. It may take place from or to the public or private sector.
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requiring the same kind of expertise, regardless of the funding sources;
− the use of "civil" contracts concerns non-regular functions and specific

tasks that do not usually fall under "labour" contracts.
The above may apply to contracts with natural persons. The notion of
'natural person' also covers single-member firms without a legal personality
separate from their member (i.e. from the individual concerned). However, it
does not encompass companies with their own legal personality, even if
owned only by the consultant working on the action.
3.1.2. Staff costs versus implementation contracts
Costs of implementation contracts (contracts for the supply of services) cannot

be claimed under the category of personnel costs. Tasks done by consultants,
experts and/or other service providers (e.g. accountants, lawyers, translators,
external auditors, etc.) may not be assimilated to tasks performed by the
beneficiary's employees.
If an individual does not work under the supervision of the beneficiary, the tasks
which he/she performs are considered as supply of services under an
implementation contract.
Example:
The beneficiary entrusts services to a company (legal person) for the

implementation of certain tasks of the action. These costs may not be eligible
personnel costs as they were not provided by an employee or an individual
(natural person). These costs may only be treated as (sub)contracting costs.
The beneficiary should award contracts to the tenderers offering best value for
money in line with the requirements of Art.II.9 and Art.II.10 MGA.
3.1.3. Time recording system
A CEF beneficiary declaring personnel costs should provide evidence of such

costs through a time recording system for which the minimum requirements are
set out in the Commission Decision C(2016)478 of 03/02/2016 on the
reimbursement of personnel costs of beneficiaries of the Connecting Europe
Facility (available here). These requirements are as follows:
− The system should record all working time including absences and may be
paper or electronically based. The time records must be approved by the
persons working on the action and their supervisors, at least monthly.
− If the beneficiary has no adequate time recording system in place, it is

considered to be a serious and systematic weakness of internal control.
− As an exception, for persons working exclusively on the co-funded

action, there is no need to keep time records, if the beneficiary signs a
declaration confirming that the persons concerned have worked exclusively
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on the action, or it is clearly indicated in their contract of employment (or
equivalent appointing act).
Examples (common errors in time recording systems that could lead to

cost rejection):
− The beneficiary declares more hours than recorded in timesheets.
− Hours declared were not within the reporting period of the action.
− More hours declared than actually worked, in order to consume the budget.
− Inconsistency between declared hours and HR absence records for leave /

illness.
− Declaration of unpaid overtime as a cost.
3.1.4. Calculation of productive hours
The above-mentioned Commission decision on the reimbursement of personnel

costs of beneficiaries of the Connecting Europe Facility (available here) also
sets out the requirements for determining productive hours of staff assigned to
the action. Three methods can be applied to such calculation:
(1) If the employment contract, applicable collective labour agreement, or the

national working time legislation allows to determine the annual workable
hours, then the following formula is used:
Annual productive hours = {Annual workable hours of the person} plus

{overtime worked} minus {Absences}.
Annual workable hours means the period during which the personnel must
be working at the employer’s disposal and carrying out his/her activity or
duties under the employment contract, applicable collective labour
agreement or national working time legislation.
Absences mean for example holidays (annual leave and national holidays),
trainings, sick leave and special leave.
(2) The ‘standard number of annual hours’ generally applied by the beneficiary
for its personnel in accordance with its usual cost accounting practices. This
number must be at least 90% of the ‘standard annual workable hours’.
If there is no applicable reference (i.e. employment contract, collective
labour agreement or national law) for the standard annual workable hours,
this option cannot be used.
(3) 1 720 hours for persons working full time (or corresponding pro-rata for
persons not working full time).
For all options under items (1), (2) and (3), the actual time spent on parental
leave by a person assigned to the co-funded action may be deducted from the
number of annual productive hours.
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The total number of hours declared under EU grants, for a person for a year,
cannot be higher than the annual productive hours used for the calculations of
the hourly rate.
Example:
The beneficiary applied a standard number of annual hours (1 700 h) based on

its standard conditions of employment. However, some of its employees
worked much more on the action (e.g. employee A worked 2 000 h on the
action in the year concerned). The hourly rate for employee A should not be
calculated based on the standard number of annual hours (1 700 h) but on the
actual annual productive hours (2000 h). Otherwise the cost of A declared as
eligible would be inflated. The declared cost would include 2000 h x [actual
annual personnel costs of A] / 1700 h. The beneficiary would declare much
more than he actually paid to employee A for working on the action.
This error resulted from a wrong choice of the productive time method. In this
case, for employee A the beneficiary should apply actual annual productive
hours and not the standard number of annual hours, given the significant
difference between the two values. In this example, the declared cost should
include 2000 h x [actual annual personnel costs of A] / 2000 h, i.e. it would be
equal to A's actual personnel cost for the time when A worked on the action.
3.1.5. Calculation of hourly rates
The above-mentioned Commission decision on the reimbursement of personnel

costs of beneficiaries of the Connecting Europe Facility (available here) also
sets out the requirements for establishing hourly rates to be used for the
calculation of personnel costs. The beneficiary may apply one of two methods
for the determination of hourly rates. Either they determine the hourly rates
based on unit costs (a form of average hourly rate per category of staff / cost
centre), or based on actual individual personnel costs. Both methods are further
outlined below:
(1) Unit costs: they are calculated in accordance with the beneficiary's usual
cost accounting practices, which shall be in line with the requirements of
the above-mentioned Commission decision and Art.II.20.5 MGA, i.e.:
− those practices constitute the beneficiary's usual cost accounting

practices and are applied in a consistent manner, based on objective
criteria independent from the source of funding;
− the costs declared can be directly reconciled with amounts recorded in

the general accounts, and
− the categories of costs used for the purpose of determining the costs
declared are exclusive (i) of any ineligible costs or (ii) of any costs
covered by other forms of grant.
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A unit cost may be an average personnel cost rate applied as, for instance,
per cost centre or per post category.
The hourly rate calculation ('unit cost') is determined as follows:
actual annual personnel costs for the person for the year
divided by
number of annual productive hours.
Annual productive hours are calculated in line with Section 3.1.4 above.
Actual annual personnel costs are calculated according to the participant's

usual cost accounting practices, provided that they comply with the
following cumulative criteria:
− they are calculated on the basis of the total actual personnel costs
recorded in the participant's general accounts for the personnel carrying
out work for the action; this may be adjusted by the beneficiary on the
basis of budgeted or estimated elements;
− the cost accounting practices are applied in a consistent manner, based

on objective criteria independent from the source of funding;
− they ensure compliance with the non-profit requirement and the

avoidance of double funding of costs.
The beneficiary must use the annual personnel costs and the number of
annual productive hours for each financial year covered by the reporting
period concerned. If a financial year is not closed at the end of the reporting
period, the beneficiary must use the hourly rate of the last closed financial
year available.
(2) Individual (actual) hourly rates.
3.1.6. Flat rates for SME owner managers who do not receive a salary
In some cases, the owner manager of the beneficiary (in particular an SME) may
decide not to pay themselves a regular salary and therefore not be on any formal
payroll system. In this case, there is no personnel 'cost' registered in the
accounts of the SME.
This situation is addressed in the above-mentioned Commission decision on the

reimbursement of personnel costs of beneficiaries of the Connecting Europe
Facility (available here). It sets out flat rates which are designed to enable such
persons to receive support under the CEF, in the absence of clear 'personnel
costs' in the company accounts.
These owner managers are remunerated/compensated for their work for the
SME by any other means than a salary (for example, dividends, service
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contracts/other non-employment contracts between the company and the owner,
etc.).
Under CEF, if a beneficiary, an affiliated entity or an implementing body has an

owner charging time to the action but who does not receive a salary, they are
only eligible for flat-rate support as defined in the above-mentioned
Commission decision. No other form of reimbursement should be considered
(e.g. via a consultancy service contract).
On the other hand, SME owners who do pay themselves a salary are not eligible
for flat rate compensation according to the Commission decision and can declare
personnel costs on the same terms as any other staff member.
3.1.7. Selected categories of staff-related costs
• Overheads declared in the personnel cost calculation
Only actual salaries plus social security contributions and other statutory
costs are included in the remuneration. Indirect costs claimed in the
personnel cost calculation are considered non-eligible.
Examples (indirect staff-related overheads):
Beneficiaries may not include any indirect costs in the personnel cost
calculation. Indirect costs are those costs which are not directly linked to
the implementation of the action and cannot be attributed directly to it.
Examples include: travel costs, utility costs, leasing, materials, rental
costs, IT costs and equipment depreciation.
Such costs may not be included in the calculation of personnel costs (it
would not comply with Article II.19.2(a) and II.19.3 MGA).
However, the beneficiary may still declare some of these costs as a part of
other eligible direct costs of the Grant Agreement 8, provided that they are
directly linked to the action and they are separately identified.
• Taxes and bonuses linked to the personnel
The statutory costs linked to the remuneration of the staff assigned to the
project are eligible.
This may include overtime, weekend, or nightshift allowances provided

they are necessary for the implementation. In cases where taxes are not
strictly linked to the staff costs but also encompass elements related to the
8
Art.II.19 MGA lists other eligible direct costs: costs of travel and related subsistence allowances; full
purchase of equipment/ depreciation costs (it depends on the Call); costs of consumables and supplies;
costs arising directly from requirements imposed by the Agreement; costs entailed by service contracts;
costs of financial support to third parties; duties, charges, non-deductible VAT provided that they are
included in the eligible direct costs.
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beneficiary's overall economic activities, they do not constitute costs
necessary for the implementation of the action and are therefore ineligible;
e.g. the regional tax on productive activities according to the Italian
legislation (Imposta Regionale sulle attività produttive – IRAP) could not be
considered as part of the eligible staff costs.
A payment of a 'bonus' triggered by the participation of an employee in the

CEF project or that is in any way linked to the performance of the person or
the project is not an eligible cost. However, there are payments that might
be called similarly which could be considered as a part of normal
remuneration package (either as regular or as additional remuneration
specified in Article II.19.2(a) MGA) and are therefore eligible if it is paid
independently of the participation of the employee in a CEF action.
• Sick leave indemnities
Salaries paid by a beneficiary to its personnel on sick leave (for the period
before social security takes over further payments) may be considered
eligible (under the "personnel costs" heading), provided that they represent
statutory payments (i.e. mandatory payments under national law and/or
applicable collective agreement), as do, for example, annual holidays, and
are in proportion to the time dedicated to the project (e.g. a 50% pro-rata
has to be applied if the concerned employee works half-time on the project).
However, if actual personnel costs are based on an hourly salary rate

(personnel costs = total salary costs / total productive hours x total hours
worked for the project), the impact of sick leave on actual eligible costs will
depend on whether the methodology to determine the total number of
productive hours gives the right to exclude the corresponding period and
other non-worked time (e.g. annual leave, public holidays, training) from
productive hours. In any case, time spent on sick leave shall not be included
in the working time (not included in the total hours worked for the project).
• Costs of personnel of public administrations
In accordance with the Financial Regulation 9, if the Call for Proposals so

provides, salary costs of personnel of national administrations may be
considered eligible, to the extent that they relate to the costs of activities
which the relevant public authority would not carry out if the project
concerned were not carried out.
It is expected that this condition is always complied with, as EU funding

cannot replace national funding (principle of additionality).
3.2. Costs of travel and related subsistence allowances (Article II.19.2(b) MGA)
Travel costs and related subsistence allowances are eligible on an actual basis
provided that the beneficiary's usual travel arrangements are applied.
9
Article 126(3)(e) of Financial Regulation 2012; Article 186(4)(e) of Financial Regulation 2018.
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However, we have to take into consideration the conditions of eligibility of
costs, mainly that the costs must be reasonable and justified.
Example (unreasonable / unjustified costs):
The cost of a trip to the United States to explain the results of a project
implemented in the EU will most likely not be reasonable and justified, even if
one of the activities was the dissemination of results.
3.3. Costs of Purchase / Depreciation and Lease of Equipment, Infrastructure

and Other Assets (Article II.19.2(c) MGA)
Costs of equipment, infrastructure and other assets may be eligible, depending

on the wording of the Call for Proposals, either as:
− full costs of purchase, or
− only costs of depreciation.
The MGA contains both options. The choice of the option is done separately for
each Call for Proposals and implemented centrally in TENtec.
3.3.1. Full costs of purchase
If the Call for Proposals (and therefore the Grant Agreement) provides for the
eligibility of full costs of purchase of equipment, infrastructure or other assets,
these costs shall be eligible, provided that:
− the assets are treated as capital expenditure in accordance with the tax and
accounting rules applicable to the beneficiary; and
− the assets are recorded in the fixed assets account of its balance sheet; and
− the assets have been purchased in accordance with Article II.9.1 MGA.
The costs of rental or lease of equipment or other assets are also eligible, as
long as they do not exceed the depreciation costs of similar equipment or assets
and are exclusive of any finance fee.
3.3.2. Costs of depreciation
If the Call for Proposals (and therefore the Grant Agreement) establishes that
only depreciation is an eligible cost, it is eligible for assets (new or second-
hand) as recorded in the accounting statements of the beneficiary, provided that:
− the asset has been purchased in accordance with Article II.9.1 MGA, and
− it is written off in accordance with the international accounting standards

and the usual accounting practices of the beneficiary.
Page 16 / 87
Only the portion of the asset's depreciation corresponding to the eligibility
period of the action and the rate of actual use for the purposes of the action may
be taken into account. If the equipment was purchased before the start date of
the action and has not yet been fully depreciated according to the usual
accounting practices of the beneficiary, then the remaining depreciation costs
recorded in the accounts of the beneficiary during the lifetime of the action may
be eligible.
In terms of depreciation rules, there is no difference between new and second-

hand equipment. The only impact may be on the period over which the
equipment bought by the beneficiary will be depreciated. The depreciation costs
declared shall be in line with the usual accounting practices of the beneficiary,
which shall in turn comply with the international accounting standards.
Depreciation costs may cover tangible and intangible assets. The list of direct
costs referred to in the general conditions of the MGA is not exhaustive and
shall not be understood as such.
The costs of rental or lease of equipment or other assets are also eligible, as
long as they do not exceed the depreciation costs of similar equipment or assets
and are exclusive of any finance fee. Similarly, only the portion of the rental
or lease costs corresponding to the eligibility period of the action and the rate
of actual use for the purposes of the action may be taken into account.
Examples (ineligible depreciation and unit costs):
− The Call for Proposals foresees that full costs of equipment purchase are
eligible. The beneficiary claims depreciation costs for assets purchased
before the action start date. Such costs are not eligible as under that
specific Call, depreciation is not the retained option (only the full costs of
purchase may be eligible, if incurred in the eligibility period).
− In some cases, the beneficiary may develop a unit cost for the use of a
particular space, vehicle or machinery, which includes the operating costs
of the equipment such as depreciation, fuel, servicing, cleaning, etc.
Under CEF, the use of unit costs to determine the cost of depreciation is
not permitted.
3.3.3. Leasing – specific case
Costs under a leasing contract may follow different rules depending on the type
of the leasing used: operational or financial.
(1) Operational leasing (renting without buying option)
For renting and operational leasing: the equipment rented or leased by the
beneficiary is not recorded as an asset of the beneficiary: There is no
depreciation involved (since the item is still the property of the renting or
leasing firm), but the rental or lease costs of the beneficiary (i.e. its
Page 17 / 87
periodic payments to the renting or leasing firm) are eligible, if they
follow the beneficiary’s usual practices and do not exceed the costs of
purchasing the equipment (i.e. are comparable to the depreciation costs of
similar equipment).
(2) Financial leasing with the option to buy durable equipment
− The equipment leased by the beneficiary must be recorded as an asset

of the beneficiary and the depreciation costs may be declared in
accordance with the beneficiary’s usual accounting practices.
− The costs declared may NOT exceed the costs that would have been
incurred if the equipment had been purchased and depreciated under
normal accounting practices.
The finance charges included in the finance lease payments are therefore
NOT eligible. The costs declared may NOT include any interest on loans
taken to finance the purchase, or any other type of financing fee.
3.4. Costs of Consumables and Supplies (Article II.19.2(d) MGA)
Consumables shall be considered as items that are not entered as fixed assets in
the accounts (or inventory) of the organisation and are not written off. These
costs are eligible provided that they are purchased in accordance with the first
subparagraph of Article II.9.1 MGA (award of contracts) and are directly
assigned to the action. The term "assigned to the action" is of utmost importance
in order to avoid double funding by way of indirect costs. The nature of the
action and the fact that the costs are specific to the action are key factors
justifying direct funding of certain costs.
Examples of consumables will depend on the nature of the action concerned, but
may include e.g. building materials, or spare parts for equipment.
Example (ineligible unit costs for consumables):
In some cases beneficiaries apply unit costs to account for consumables used
in the context of a project. However, the reimbursement of unit costs for
consumables is not permitted under the CEF programme.
3.5. Costs Arising from Requirements Imposed by the Grant Agreement

(Article II.19.2(e) MGA)
The Grant Agreement may impose some obligations on the beneficiary, such as
dissemination of information, specific evaluation of the action, audits,
translations, reproduction, costs of requested financial guarantees. All these
costs are eligible, provided that the corresponding services are purchased in
accordance with the first subparagraph of Article II.9.1 MGA.
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Examples:
− Eligible costs: Audits necessary for the Certificate on Financial

Statements, if conducted in line with Annex VII to the MGA (please note
that the Agency considers the costs as eligible even if such an audit is not
required under the terms of the grant agreement);
− Eligible costs: costs of the financial guarantee for pre-financings.
− Ineligible costs: costs of audits requested by third parties (i.e. Member

States auditing a project) cannot be considered eligible.
3.6. Costs of Implementation Contracts and Subcontracts (Articles II.19.2(f),

II.9 and II.10 MGA)
Costs of contracts are eligible under certain conditions. The implementation of

an action may require contracts for the procurement of goods, works or services,
including the purchase of specific consumables and supplies. These contracts are
governed by Article II.9 MGA. One example mentioned in the MGA (Article
II.19.2(f)) are the costs of environmental studies on the protection of the
environment and on compliance with the relevant Union law.
Contracts must respect the following rules:
− they shall be awarded to the tender offering best value for money, or the
lowest price, as appropriate, and where applicable following public
procurement rules;
− conflicts of interests shall be avoided in awarding implementation

contracts;
− the beneficiaries shall ensure that INEA, the Commission, OLAF and the
European Court of Auditors may exercise their rights of checks and audits
towards contractors.
Non-compliance with the rules above results in the ineligibility of the costs
related to the given implementation contract.
Important: public procurement rules
An implementation contract or a subcontract may be governed by the

applicable public procurement legislation. For the assessment of contracts
under public procurement rules, please see the chapter on 'Analysing
procurement procedures' on the INEA intranet (available here).
Non-compliance with rules on public procurement may result in a reduction of
Page 19 / 87
the grant in proportion to the seriousness of the breach.
The Model Grant Agreement establishes a difference between award of

contracts necessary for the implementation of the action (Article II.9) and
subcontracting of tasks forming part of the action (Article II.10).
It is important to distinguish between implementation contracts and

subcontracts, as the use of subcontracting is more restricted and must respect
the following rules (in addition to the general rules applicable to implementation
contracts) specified in Article II.10.2 MGA:
- subcontracting does not cover core tasks of the action;
- recourse to subcontracting is justified having regard to the nature of the

action and what is necessary for its implementation;
- any recourse to subcontracting, if not provided for in Annex I, must be

communicated to and accepted by the Agency.
It should be highlighted that the MGA was amended in 2017 to specify that the
Agency may grant approval:
(i) before any recourse to subcontracting, if the beneficiary requests an

amendment as provided for in Article II.12 MGA; or
(ii) after recourse to subcontracting if the subcontracting:
− is specifically justified in the interim or final technical report referred to

in Articles II.23.2; and
− does not entail changes to the Agreement which would call into
question the decision awarding the grant or be contrary to the equal
treatment of applicants.
Regardless of the distinction between contract and subcontract, the beneficiary

remains solely responsible for carrying out the action and for compliance with
the agreement.
The distinction between contracts and subcontracts is not always clear, in

particular in the transport and energy sectors, where most beneficiaries are
public bodies mandated by national authorities to develop a specific kind of
infrastructure. The analysis of what is contracting versus sub-contracting should
be based on a case-by-case analysis, taking into account factors such as the
nature of the action, the core activities involved and the responsibility for the
beneficiary to maintain control over those core activities.
'Implementation contracts' under Article II.9 MGA cover situations where a

beneficiary purchases goods, works or services necessary to implement, under
its control, part of the action.
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By contrast, subcontract is a procurement contract within the meaning of Article
II.9, which covers the implementation by a third party of tasks forming part of
the action as described in Annex I. Subcontracts are concluded in cases where
the beneficiary choose to outsource the task to a third party because it is more
efficient to use the services of a specialised organisation. However, the recourse
to a sub-contractor should not entail changes to the grant agreement that would
have the effect of calling into question the decision awarding the grant to the
beneficiary or be contrary to the equal treatment of applicants.
Important: no subcontracting of the coordinator's tasks
The coordinator shall not subcontract any part of its coordination tasks (as
described in Article II.1.3 MGA) to the other beneficiaries or to any other
party.
3.7. Financial Support to Third Parties (Articles II.19.2(g) and II.11 MGA)
Some actions may involve financial support to third parties as an eligible

activity. The beneficiary then acts as an intermediary and passes funds provided
by INEA to the final beneficiaries (who are not parties to the grant agreements).
Examples:
Some actions under the SESAR priority; some grant schemes set up by
regions / municipalities or other public bodies under the priority 'Innovation
and new technologies'.
The costs of such financial support are eligible as long as they fulfil the
conditions for the giving of such support defined in the Financial Regulation10
and in the grant agreement.
The Call for Proposals shall explain under which priority and on which
conditions the support to third parties can be eligible. To date, based on the text
of Work Programmes and Calls for Proposals adopted so far, only public bodies
are allowed to grant financial aid to third parties.
In the case of a grant scheme, the costs declared by the beneficiary may not be
incurred by the beneficiary and registered in their accounts, but incurred and
registered by the final beneficiaries. In this case, it is important to recognize
form the outset that the standard eligibility requirement of Article II.19.1(d)
MGA does not apply.
When drafting Annex I as regards the grant scheme activity, it is important to
10
Page 21 / 87
clearly define roles and responsibilities in terms of technical and financial
reporting to INEA, .
If for example, the INEA beneficiary passes on the CEF MGA eligibility
requirements to third parties, then the INEA beneficiary needs to put in a place a
control system that should allow INEA to verify eligibility with these conditions
before declaring the costs to INEA.
One recommendation is to define at a very early stage in the grant process the
supporting documentation required to support the beneficiaries cost declaration
to INEA, either in the grant agreement itself, or as a formal exchange of letters.
3.8. Taxes, VAT (Article II.19.2(h) MGA)
Duties, taxes and charges paid by the beneficiary, notably non-deductible VAT
are eligible costs, provided that they are related directly and exclusively to the
implementation of the action. Nonetheless, the VAT follows a specific regime.
The VAT is a tax applied to supply of goods and services, charged as a

percentage of their price and usually paid by the buyer to the seller as part of the
overall price. The issue of whether VAT amounts may be an eligible cost is only
relevant for those cost categories which imply procurement by the beneficiary
(e.g. costs of travel, of equipment, of consumables and supplies, of audit
services, translation services, evaluation services, subcontracts). It is not
applicable to staff costs.
VAT is a particular tax because it is intended to be borne by the final consumer

only and not by the other actors in the chain of supply (to them the VAT is
intended to be neutral). The seller charges VAT on its sales, collects it together
with the price and pays the VAT to the tax authorities. However, it can also
reduce this tax payment by the amount of VAT which it had to pay itself on its
purchases (VAT deduction).
As long as the VAT remains deductible, it is neutral for the beneficiary and is not
an eligible cost. If the VAT cannot be recovered, it may be an eligible cost –
and in fact this is the rule for the CEF Transport Cohesion envelope. For the
general envelope under CEF transport as well as for CEF energy and CEF
ICT, the rules are more nuanced, in line with the Financial Regulation. Those two
VAT eligibility regimes are described in the following sections. Section 3.8.3
contains a flowchart summarising the VAT eligibility rules under the CEF
programme.
Page 22 / 87
An specific case: reverse charge on EU VAT
When buying goods or services from suppliers in other EU countries, the

Reverse Charge moves the responsibility for the recording of a VAT
transaction from the seller to the buyer for that good or service.
In practical terms, this means that for some cross border supplies and
services, the invoice may not indicate any VAT. However, the buyer (our
beneficiary) is obliged to register the VAT at local VAT rates in their
accounting system. If the Beneficiary is unable to deduct / recover VAT, then
this locally registered VAT is an eligible cost, just it would be the case with
VAT on local purchases.
The only issue is that in terms of sampling, the invoice itself will not refer to
VAT. The invoice should make reference to the reverse charge applying. If
this is decalred as a cost to INEA, in order to confirm eligibility, the booking
of the VAT in the beneficiary’s accounting system should be provided, along
with evidence that the beneficiary is unable to recover VAT.
3.8.1. VAT under the CEF in general
The rule currently in force 11 is that the VAT is eligible where: (i) it is not
recoverable under the applicable national VAT legislation and (ii) it is paid by a
beneficiary other than a non-taxable person. These two requirements are
discussed below.
(i) Non-recoverable VAT: VAT is considered not recoverable if according

to national law it is attributable to any of the following activities:
− activities which are exempt from VAT without right of deduction;
− activities which are outside the scope of VAT;
− any of the activities above, for which VAT is not deductible but
refunded by means of specific refund schemes or compensation funds
not foreseen by the VAT Directive, even if that scheme or fund is
established by national VAT legislation.
Such activities are often activities in the general interest. Entities engaged
in such activities do not charge VAT on their services and, as a result,
cannot deduct VAT paid on their purchases either. For them the VAT is
not neutral, it is a cost.
A document from the tax authorities that confirms that VAT is either non-
deductible or that the given entity cannot recover VAT is generally
sufficient to conclude that VAT is non-recoverable.
11
Article 126(3)(c) of Financial Regulation 2012 (and Article 187 of the Rules of Application); Article
186(4)(c) of Financial Regulation 2018, in connection with Article 8(7) of the CEF Regulation.
Page 23 / 87
Examples (activities where the VAT is not recoverable):
These activities may include e.g. transport for sick or injured people in
specially designed vehicles) or non-economic activities (e.g. collecting
taxes, award of grants from the national budget). A beneficiary engaged
in such activities will not charge VAT on the goods or services which it
supplies, and will not be allowed to deduct the VAT which it pays when
it purchases goods or supplies either.
(ii) Beneficiaries other than a non-taxable person:
Non-taxable persons are State, regional and local government

authorities and other bodies governed by public law, insofar they
engage in activities and transactions as public authorities 12.
Exceptionally, public authorities and bodies engaged in certain activities

are considered taxable persons (unless they carry out such activities on
such a small scale as to be negligible). These activities are listed in Annex
I to the VAT Directive 13 and under the CEF programme they will rarely
be financed.
In case of doubts as to whether a given public law body acts as a public

authority, the beneficiary should be requested to provide a confirmation
from the relevant Ministry certifying that the beneficiary is not acting as
a public authority in the context of the action considered. This status of a
non-taxable person should always be verified with regard to the specific
activities supported by the CEF grant.
Examples (taxable activities of public law bodies):
Activities relevant for the CEF programme where VAT payable by

public law bodies may exceptionally be considered eligible, may include
port and airport services; activities of telecommunications or energy
providers. This always requires a case-by-case assessment.
In conclusion, under the CEF general envelope VAT paid by public law bodies
is in most cases unlikely to be eligible, unless it is specifically linked to an
activity listed in Annex I to the VAT Directive. This non-eligibility applies
even when the entity can provide a certificate from the tax authority that
they cannot recover VAT.
12
Article 13(1) of Council Directive 2006/112/EC of 28 December 2006 on the common system of value
added tax (OJ L 347, 11.12.2006, p. 1–118).
13
They include the following activities: (1) telecommunication services; (2) supply of water, gas,
electricity and thermal energy; (3) transport of goods; (4) port and airport services; (5) passenger transport;
(6) supply of new goods manufactured for sale; (7) transaction in respect of agricultural products, (8)
organisation of trade fairs and exhibitions; (9) warehousing; (10) activities of commercial publicity bodies;
(11) activities of travel agents; (12) running of staff shops, cooperatives and industrial canteens and similar
institutions; (13) activities carried out by radio and television bodies in so far as these are not exempt
pursuant to Article 132(1)(q) of the VAT Directive.
Page 24 / 87
3.8.2. VAT under the CEF Transport Cohesion envelope
Under the Cohesion envelope, the CEF programme follows the Cohesion rules
which provide for more freedom in terms of VAT eligibility. The rule 14 is that
the VAT is eligible where it is not recoverable under national VAT legislation.
It does not matter if the beneficiary is a taxable or a non-taxable person.
Example (not recoverable VAT for a private entity – certificate):
The beneficiary is a private entity and it declares that it cannot recover VAT
that it paid for the purchase of equipment necessary for the action. If this gives
rise to doubts, the Agency can request a certificate from the national tax
authorities confirming that the beneficiary cannot recover VAT.
Regime under the MGA – Article II.19.2(h) and Article 14: Article II.19.2(h)
MGA reiterates the rule above (in its variant generated for Cohesion envelope
actions). Article 14 MGA does not apply, since any beneficiary can claim VAT
as eligible if they cannot recover it, regardless of their public or private law
status and activities pursued.
Where a CEF beneficiary is involved in actions funded from both the general
and the Cohesion envelope, they need to be aware that there are 2 potentially
different VAT eligibility regimes applicable, depending on the envelope used.
14
Article 69(3)(c) of Regulation (EU) No 1303/2013 of the European Parliament and of the Council of
17 December 2013 (OJ L 347, 20.12.2013, p. 320–469) in connection with Article 8(7) of the CEF
Regulation.
Page 25 / 87
3.8.3. VAT eligibility under CEF – flowchart
3.9. Selected Specific Cases
3.9.1. Reimbursement of bid preparation costs
In the context of tendering procedures organised by the beneficiary, contracting

authorities / entities sometimes foresee in the calls for tenders a compensation
mechanism for bidders who do not succeed in the tender. This compensation is
generally a lump sum which is paid to all those admissible bidders which are not
finally awarded with the contract published. Such compensation may be justified
when the contracting authority considers that it is needed to stimulate the
competition as the costs of preparing a bid are high and there is a risk of not
receiving a sufficient number of bids.
Therefore, if the call for tenders organised by the beneficiary foresees the
payment of these lump sums, then they will be eligible for Union support, as
long as the general conditions for the eligibility of costs are respected, in
particular if the payment of such lump sums is reasonable and justified.
3.9.2. Legal support
The costs of legal support, advice or representation can be eligible if the general
conditions for the eligibility of costs are respected, in particular if such support
Page 26 / 87
is necessary for the implementation of the action.
Examples:
Examples of eligible legal support:

− only under the cohesion envelope, legal support in the land acquisition or
obtaining of servitudes (rights of way, etc.) necessary for the construction
works envisaged by the action (whether such right are obtained via
contract, or via court litigation, where necessary)
− legal support in designing the procurement process or in obtaining
administrative permits necessary for the implementation of the action.
Examples of ineligible legal support:

− legal advice on the interpretation of the grant agreement (whether
preceding or following its signature);
− legal representation in a court dispute between the beneficiary and its
contractor, based on improper performance of the works contract.
3.9.3. Financial incentives to accelerate action completion
In cases where incentives for finishing the works ahead of schedule are foreseen
in the call for tenders and included in the contract awarded by the contracting
authority, these costs can be considered eligible, as long as the general
conditions for the eligibility of costs are respected, in particular if such
incentives are reasonable and justified.
3.9.4. Costs related to the grant agreement preparation (GAP)
The eligibility period for a CEF-funded action may start after the signature of
the grant agreement, or, if necessary, it can have a retroactive starting date. The
starting date cannot fall before the submission of the given proposal, with the
exception of the 2014 calls for proposals.
Therefore, any costs related to the preparation of a proposal will be ineligible as

they correspond to a period before the submission of the proposal. By contrast,
if the action start date falls before the grant agreement signature, then the costs
incurred by the beneficiaries during the GAP exercise and within the eligibility
period for the action, can be eligible. However, to be eligible, they have to
comply with the general eligibility criteria, such as a direct link with the action,
sound financial management, etc. (see section 2 above).
Please keep in mind that the GAP-related costs can only be eligible if they fall
on/after the action starting date. They will not be eligible for actions which start
after the grant agreement signature.
Page 27 / 87
Examples:
− Travel and accommodation costs related to a kick-off meeting are likely

to be eligible if they are reasonable.
− Costs of a legal consultation about the grant agreement are most likely
ineligible as they are not necessary for the implementation of the action
(the grant agreement is not negotiable).
3.9.5. Penalties (liquidated damages) charged by beneficiaries to (sub)contractors
In some cases, in order to implement an action, beneficiaries need to buy goods,

works or services from a third-party (sub)contractor. The contract signed
between the beneficiary and such (sub)contractor may impose penalties
(liquidated damages, fixed compensation) if the (sub)contractor does not comply
with the contract (e.g. is late with delivery, or fails to remove defects of its
works). Such penalties may be paid by the (sub)contractor to the beneficiary in
cash or may be set off against the (sub)contractor's remuneration. In any event,
they do not reduce the eligible cost of the (sub)contract, nor are they a 'receipt'
for the purpose of the no-profit principle. Even if such penalties may qualify as
'income' in the beneficiary's books, they are not 'generated by the action' but
they originate from the implementation of a contract signed for the action
implementation.
3.10. Indirect Costs
Indirect costs are defined as costs which are not directly linked to the
implementation of the action and therefore cannot be attributed directly to it.
They may not include any costs identifiable or declared as eligible direct costs
(Article II.19.3 MGA).
They must represent a fair apportionment of the overall overheads and comply
with the eligibility conditions.
Overheads are all the structural and support costs of an administrative, technical
and logistical nature which are cross-cutting for the operation of the beneficiary
entity's various activities and cannot therefore be booked in full to the action for
which the grant is awarded because the grant is only one part of those activities.
Overheads comprise costs connected with infrastructures and the general

operation of the organisation and not exclusively related to the action, such as:
− hiring or depreciation of buildings and plant,
− water, gas, electricity,
− maintenance,
− insurance,
− supplies and petty office equipment,
− communication and connection costs,
− postage,
Page 28 / 87
− costs connected with horizontal services (administrative and financial
management, human resources, training, documentation, IT, etc.).
Under CEF, indirect costs follow different rules depending on the sector:
− Under CEF Transport and CEF Energy, indirect costs are ineligible.
− Under CEF Telecom: indirect costs calculated as 7% of the total eligible

direct costs minus subcontracting costs (see Article II.10 MGA) and costs
of financial support to third parties (Article II.11 MGA) are eligible.
4. INELIGIBLE COSTS
Below is a non-exhaustive list of ineligible costs (based on Article II.19.4 MGA).
Please note that any costs which do not meet the cumulative criteria for eligibility will be
considered ineligible, even if not included in the list below.
(a) Return on capital and dividends paid by a beneficiary.
Example: dividends paid to an owner manager of a beneficiary.
(b) Debt and debt service charges.
Example: leasing finance fees.
(c) Provisions for losses or debts.
Provisions are financial amounts set aside to cope with potential future expenses
that as yet uncertain, for example, the outcome of a legal case which may or may
not generate a debt, depending on the verdict.
(d) Interest owed.
(e) Doubtful debts.
(f) Exchange losses.
(g) Costs of transfers from the Agency charged by the bank of a beneficiary.
(h) Costs declared by the beneficiary in the framework of another action receiving a
grant financed from the Union budget (including grants awarded by a Member
State and financed from the Union budget and grants awarded by other bodies than
the Commission for the purpose of implementing the Union budget).
In particular, beneficiaries receiving an operating grant financed by the EU or

Euratom budget cannot declare indirect costs for the period(s) covered by the
operating grant, unless they can demonstrate that the operating grant does not cover
any costs of the action.
Page 29 / 87
(i) Contributions in kind from third parties.
(j) Excessive or reckless expenditure.
In practice, when assessing expenditure from this perspective, it can evaluated by:
– benchmarking the price paid with that of the market for similar
services/goods/works, or for internal costs by compared those incurred in the
past for similar items/events;
– considering the link with and the necessity to the action.
(k) Deductible VAT.
Deductible VAT is neutral to the beneficiary as it can be recovered by deducting

this cost from the beneficiary's VAT liabilities. For more details on the eligibility
of VAT, please see Section 3.8.
(l) Costs of land and building acquisition (including expropriation costs).
However, for Cohesion envelope, costs of purchase 15 of land (developed or not)

may be eligible, up to 10 % of the total eligible costs of the action (15% for derelict
sites and sites formerly in industrial use, which comprise buildings) 16.
(m) Indirect costs – for CEF Transport and CEF Energy. For CEF Telecom there are
specific rules on indirect costs. For more details, please see Section 3.10.
(n) Other categories of costs (including ceilings for some categories) as specified in the
Call for Proposals or the Work Programme. During the preparation of a grant
agreement or amendment particular attention needs to be paid to those limitations.
Examples of ineligible costs based on selected Calls for Proposals:
− costs related to STM equipment for ERTMS on-board deployment actions;
− costs in excess of ceilings set out in the Call for Proposals (e.g. ceilings for
ERTMS deployment; for mobile equipment under the Innovation and/or
Nodes priorities);
− maintenance dredging activities for inland waterways and for inland and
maritime ports;
− infrastructure maintenance;
15
Leasing included
16
See Article 69(3)(b) of Regulation (EU) No 1303/2013. However, in exceptional and duly justified cases,
this ceiling may be raised above the aforementioned percentage for operations concerning environmental
conservation.
Page 30 / 87
− research activities.
Annexes to these guidelines provide an overview of specific rules on the

eligibility of costs under the Calls for Proposals launched by INEA to date.
Page 31 / 87
LIST OF ANNEXES:
Annex I: Eligible and ineligible costs under CEF Transport Calls for Proposals
Annex II: Eligible and ineligible costs under CEF Energy Calls for Proposals
Annex III: Eligible and ineligible costs under CEF Telecom Calls for Proposals
Page 32 / 87
ANNEX I
Eligible and ineligible costs under CEF Transport Calls for Proposals
This Annex contains a non-exhaustive list of categories of eligible and ineligible costs specific to the CEF Transport Calls for Proposals (based
on the texts of the respective calls for proposals, Work Programmes and INEA's responses to Frequently Asked Questions) and is without
prejudice to the general rules on the eligibility of costs under the Financial Regulation, the CEF Regulation and the Model Grant Agreement, as
described in the Guidelines.
This Annex is broken down into 5 parts covering:
− CEF Transport calls for proposals launched in 2014 (Annual General Call, Multiannual both General and Cohesion)
− CEF Transport calls for proposals launched in 2015 (Multiannual, both General and Cohesion
− CEF Transport calls for proposals launched in 2016 (Annual and Multiannual, both General and Cohesion)
− CEF Synergy Call launched in 2016
− CEF Transport calls for proposals launched in 2017 (Blending and SESAR calls)
− CEF Transport MAP General Call for Proposals 2018.
The tables in this Annex contain elements common to all calls for proposals launched in a given year, as long as a given priority is supported under a
given call. In order to facilitate the use of the table, for each priority each table specifies to which call for proposal it applies.
The following symbols are used for this purpose:
 AP (Annual Work Programme) General Call   AP (Annual Work Programme) Cohesion Call 
 MAP (Multiannual Work Programme) General Call  MAP (Multiannual Work Programme) Cohesion Call
Where for a given priority no information is provided in the relevant table, no specific examples of eligible or ineligible costs were provided in
the given call for proposals, Work Programme and in INEA's responses to the Frequently Asked Questions.
33
Part 1 – 2014 Transport Calls for Proposals
This part encompasses the following 2014 calls for proposals launched by INEA under the CEF Transport programme:
− AP Call: 2014 CEF Transport Annual Call ("AP Call"): maximum costs eligibility period according to the Call for Proposals: 3 years with
an option to extend by 12 months.
− MAP General Calls (3 separate calls for Funding Objective 1, Funding Objective 2 and Funding Objective 3, respectively).
− MAP Cohesion Call: 2014 CEF Transport Call for Cohesion Countries.
PRIORITY ELIGIBLE COSTS INELIGIBLE COSTS

GENERAL RULES UNDER − Full costs of purchase of equipment and − Support to third parties (grant scheme) (2014
ALL CALLS infrastructure treated as capital expenditure (2015 General FAQ 9.10)
 General FAQ 9.12) − Costs of preparation of the grant application
− Activities for improved accessibility to transport (2014 General FAQ 9.17)
infrastructure for persons with disabilities and − Indirect costs
persons with reduced mobility – with a ceiling of
10% of the total eligible costs of works of the
Action (Article 10(2)(b)(v) CEF Regulation)
− Ceilings also apply to ERTMS deployment,
Freight Transport Services and SESAR– see below
PROJECTS ON THE CORE Inland Waterways & Inland Ports: Inland Waterways & Inland Ports:
NETWORK (CORRIDORS − Capital dredging, rehabilitation dredging − Maintenance dredging
& OTHER SECTIONS)
 − Waterside terminals/platforms infrastructure (such − RIS deployment
as storage and stacking areas) – if available for use Roads:
by all operators on a non-discriminatory basis
PROJECTS − Maintenance
ON THE − ICT applications (in particular pilot Single Maritime Ports:
COMPREHENSIVE Window applications, applications to streamline
administrative formalities through a better use of − Superstructure
NETWORK
information, communication and positioning − Any maintenance (incl. by dredging)

 AP General Call  AP Cohesion Call  MAP General Call  MAP Cohesion Call 34
technologies) – save for RIS deployment − Dedicated infrastructure / facilities for cruise
− Facilities for loading / transhipment / ice-breaking ships
/ hydrological services / dredging – if (i) − Expansion / construction of new cargo /
accessible for use by all operators on a non- passenger terminals
discriminatory basis, (ii) done to ensure year- − Rail:
round navigability, and (iii) if part of a wider − Train station buildings
action focused on inland waterway transport basic
− Maintenance
infrastructure upgrade and/or waterside terminals
− Investments in facilities, equipment (surveying
vessels, specialised hardware, etc.) and software
which are necessary to collect hydraulic,
topographic or morphological and other relevant
data for actions improving navigability (2014
IWW, RIS & Inland Ports FAQ 9)
− Costs of use of multifunctional vessels for
collecting data and for marking fairways, but not
for ice-breaking (2014 IWW, RIS & Inland Ports
FAQ 10)
− Rail:
− Tracks inside train stations, platforms in rail
stations, catenary, signalling equipment
−
PROJECTS TO CONNECT
WITH NEIGHBOURING
COUNTRIES - -

RAIL INTEROPERABILITY − Elements of a major railway infrastructure − ERTMS-related activities
 projects such as: (i) station / stop buildings (for
passengers & for operations), (ii) platform
(including roof, lift, underpass), (iii) bicycle
parking lots, (iv) tracks, (v) catenary, (vi)
signalling equipment, (vii) P+R, B+R parking lots,
(viii) underpass, overfly, roads, (ix) intermodal
elements. The elements covered by any TSI in
force are considered eligible (2014 ERTMS,
Interoperability & Reducing Freight Noise FAQ
3.2)
ERTMS Track-side − Equipment of lines, with a ceiling of € 260 000 − Feasibility studies – unless they are part of a
 deployment per km of double-track ERTMS-equipped line preparatory action package
− Upgrade of lines – no ceiling − Costs of actions related to Class B systems
− Infrastructure works for track-side equipment and/or STM
necessary for ETCS level 2 implementation / − Costs of actions covering GSM-R
upgrade (e.g. upgrade / renewal of interlockings) – component only
no ceiling
− Complex situations and pilot actions (e.g.
marshalling yards, stations, junctions, cross-border
points) – ceilings may be adapted case by case
− Preparatory actions – no ceiling
On-board − Deployment of ERTMS on already existing − Cost of works related to Class B systems
deployment vehicles, with a ceiling of € 250 000 per ERTMS (e.g. STM)
on-board subsystem to be deployed (hardware and − Costs of actions covering GSM-R
software). The ceiling may be decreased if the component only
vehicle is already equipped with ETCS-compliant
hardware. If there is more than 1 subsystem on a
vehicle, the ceiling applies individually to each
subsystem and not to the vehicle (2014 ERTMS,
Interoperability & Reducing Freight Noise FAQ
1.11)
− Upgrade – no ceiling
− Development, test and validation of a B3-
compliant on-board unit in a first-of-a-series /
prototype vehicle getting the type approval – no
ceiling
Vehicles concerned must have been authorised for
operation in at least 1 Member State before the
submission of the proposal.
CEF-funded vehicles must remain and operate in
EU/EEA territory for at least 5 years following the
action completion (transit through non-EU/EEA
countries does not compromise this obligation).
The rules above apply to vehicles used for public
passenger transport and other categories of transport
(2014 ERTMS FAQ 1.10).
Simplification No ceiling, recommended action duration up to 2 − Works, such as development / installation of
and facilitation years ETCS equipment (2014 ERTMS FAQ 1.7)
of placing in
operation
ERTMS No ceiling, recommended action duration up to 3
-
training years
ERTMS − No ceiling − ETCS B2 test campaigns
specifications − ETCS B3 test campaigns only, no ETCS B2
maintenance
Operational No ceiling
-
rules
INNOVATION AND NEW − Roll out of alternative fuels distribution − Development and demonstration phases of a
TECHNOLOGIES infrastructure (including grids and other facilities new technological solution
 necessary for energy supply)
− For studies with a pilot: costs of mobile equipment
(new or retrofitted), serving for freight or
passenger transport – for maritime and inland
waterway transport only, and as long as it is
strictly necessary for the study and to
demonstrate the operational and commercial
viability of the innovative action
− Interoperable infrastructure/vehicle interfaces to
support use of alternative fuels, including
telematics applications or energy demand
management systems when required
− Improvement & deployment of telematics
applications, coming to support decarbonisation of
transport, with a view to enable roaming
functionality, interoperability, multimodality and
compatible ticketing systems
− Innovation of operational processes including fleet
management, load and fuel management,
multimodality and interoperability
SAFE & SECURE − Maintenance activities
INFRASTRUCTURE -

FREIGHT TRANSPORT − Small-scale ancillary infrastructure, super- − Large-scale infrastructure
SERVICES structures and equipment (including on-board − Research or studies
 equipment) - if directly linked to the operations
− Business or production activities which bear
proposed in the action. Support should not exceed
no direct relation to logistics, transport or
20% of the eligible costs of the action
distribution
− Operational costs for the following action types
may be eligible: modal shift operations,
optimisation of supply chain management, better
efficiency through collaboration, traffic avoidance
and efficient fleet operations (2014 Freight
Transport Services FAQ 2)
RAIL FREIGHT NOISE − Only wagons intended for freight operations − Locomotives, traction vehicles and
 passenger transport wagons
− Replacement, reprofiling or any other action
related to wheelsets
− Shunters, electric multiple units, diesel
multiple units, railcars, passenger carriage
TELEMATIC
APPLICATIONS
- -
other than under MAP

SESAR − Activities supporting or aiming at accelerating the − Costs of certain mandatory retrofitting
 industrialisation of ATM functionalities identified installations on board (e.g. Pilot Controller
in the PCP Regulation Data Link – EU requirement) – after the
− Additional validation activities that are not ultimate deadline for compliance set by the
covered by the SJU relevant EU legislation (2014 SESAR FAQ
2)
− Development of technical capabilities still at the
industrialisation phase, if necessary for the
deployment of ATM functionalities in line with
the Deployment Programme (2014 SESAR FAQ 3
and 4)
− In-house costs incurred for the development or the
upgrade of technical capabilities of ATM
platforms (2014 SESAR FAQ 5)
RIS (River Information − Purchase and installation of hardware and − Construction / renovation of a RIS centre
Services) software to be used for RIS deployment, including building (2014 IWW, RIS & Inland Ports
 those inside RIS centre buildings (2014 IWW, FAQ 8)
RIS & Inland Ports FAQ 8)
ITS
- -

MOTORWAYS OF THE − Costs to comply with MARPOL Convention − Feasibility studies
SEA (MoS) Annex VI and Sulphur Emission Control Area − Market studies
 requirements – may be eligible as part of costs of
− Full cost of acquiring / upgrading /
upgrading MoS links
constructing a vessel – only costs of
− Costs contributing to better environmental additional efforts for environmental
performance of a maritime service (e.g. purposes may be eligible
installations related to on-shore power supply) –
− Costs to purchase / operate an LNG tanker
may be eligible as part of costs of upgrading MoS
links (LNG carrier) (2014 MoS FAQ 10)
− Cost of acquiring / upgrading / constructing a − Maintenance dredging (2014 MoS FAQ 25)
vessel – but only the cost of additional costs of
efforts for environmental purposes – may be
eligible as part of costs of upgrading MoS links.
Example: costs related to LNG parts of the engine
and co-related installations aboard a dual-fuel
(diesel & LNG) vessel (2014 MoS FAQ 14)
− Co-funding of the acquisition of ships is limited to
additional efforts for environmental purposes in
upgrading the vessels and cannot cover the full
costs of acquiring or constructing a vessel. This
kind of investment could be considered as eligible
under certain conditions:
• the ship will be part of an upgraded or a new
MoS link established between two ports in two
different countries on an intermodal corridor,
or
• the ship intends to pilot and validate some new
technological solutions which have not been
tested before on other ships in Europe. The
piloting actions should be innovative
(2014 MoS FAQ 30)
− Superstructure – only within actions open to any
user on a non-discriminatory basis, if such
superstructure can be considered as ancillary
infrastructure necessary for implementation of the
action and/or related to increase of efficiency or
environmental performance of MoS services. The
superstructure, including ships, will be required to
serve the co-funded actions within the EU area for
at least 5 years after the action completion.
Superstructure may include mobile infrastructure
such as e.g. locomotives, gantry cranes, reach
stackers or security scanners (2014 MoS FAQ 8),
LNG bunkering barges (MoS FAQ 9) or ice-
breakers (2014 MoS FAQ 24)
− Studies and deployment of alternative fuel (e.g.
LNG) infrastructure (2014 MoS FAQ 11)
− Investment costs (CAPEX) of freight ferry
lengthening, if connected with investment in the
port which the ship serves and if they contribute to
upgrading the maritime link and its efficiency
(2014 MoS FAQ 12)
− Adjustments aboard ships such as LNG
retrofitting, scrubber installation, cold-ironing
(2014 MoS FAQ 6)
− Investments in ancillary adaptations of ships (e.g.
in vessel capacity) as long as the action involves at
least two ports (one Core and one Comprehensive)
and a maritime operator providing regular
connections between these ports (2014 MoS FAQ
19)
− Improvement / retrofitting of a ship sailing under a
non-EU flag (2014 MoS FAQ 17)
ACCESSIBILITY
- -

CORE NETWORK NODES
- -

MULTIMODAL LOGISTICS − Development of multimodal logistic platforms for
PLATFORMS storage of freight within maritime ports, inland
 ports, airports and rail-road terminals, if the main
-
objective of the action is to provide for effective
interconnection and integration of the
infrastructure (2014 Multimodal FAQ 3)
− MAP General Call: maximum costs eligibility date according to the Call for Proposals: 31/12/2020;
− MAP Cohesion Call: maximum costs eligibility date according to the Call for Proposals: 31/12/2020.

GENERAL RULES UNDER − Full costs of purchase of equipment and − Depreciation costs (2015 General FAQ 9.12)
ALL CALLS infrastructure treated as capital expenditure (2015 − Research activities (2015 General FAQ 2.1)
 General FAQ 9.12)
− Losses (2015 General FAQ 9.6)
− Support to third parties (grant scheme) – for the
− Overhead costs (2015 General FAQ 9.11)
Innovation priority only
− Indirect costs
− Activities for improved accessibility to transport
infrastructure for persons with disabilities and
Action (Article 10(2)(b)(v) CEF Regulation)
− Ceilings also apply to ERTMS deployment, mobile
equipment (for Innovation) and to ITS – see below
PROJECTS ON THE CORE Railways: Railways:
NETWORK (CORRIDORS − Also costs of projects combining works on pre- − Pilot rail transport service on a Core Network
& OTHER SECTIONS) identified CNC sections for railway Corridor ending in a third country (2015
 implementation including interoperability Core Network FAQ a.2)
elements, with ERTMS track-side implementation Inland Waterways & Inland Ports:
works along the same sections
− maintenance dredging
− GSM-R component, if part of a broader rail
− RIS deployment
infrastructure action (2015 Core Network FAQ
b).2) − Costs of infrastructure which does not
directly benefit waterborne transport
Inland Waterways & Inland Ports: operations
− Capital dredging Roads:
− Rehabilitation dredging – only in connection with − Maintenance
global actions that provide for year-round good Maritime Ports:
navigation status for a given section of the − Superstructure understood as moveable
waterway commercially operated infrastructure,
− Waterside terminals/platforms infrastructure – if warehouses and others
accessible for use by all operators on a non- − Any maintenance (incl. by dredging)
discriminatory basis
− Dedicated infrastructure / facilities for cruise
− ICT applications (in particular pilot Single ships
Window applications, applications to streamline
administrative formalities through a better use of − Expansion / construction of new cargo /
information, communication and positioning passenger terminals in ports
technologies)
− Facilities for loading / transhipment / ice-breaking
/ hydrological services / dredging – if (i)
accessible for use by all operators on a non-
discriminatory basis, (ii) done to ensure year-
round navigability, and (iii) if part of a wider
−
Maritime Ports:
− Reconstruction of piers, save for any other works
that spread further to the terminal area itself (2015
Core Network FAQ e.1)
RAIL INTEROPERABILITY -
 − ERTMS-related activities
ERTMS Track-side − Equipment of lines, with a ceiling of € 260 000 − Feasibility studies – unless they are part of a
no ceiling − GSM-R in combination with ETCS level 1
− Preparatory actions – no ceiling (2015 ERTMS FAQ 30)
On-board − Deployment of ERTMS on already existing − Cost of works related to Class B systems
deployment vehicles, with a ceiling of € 250 000 per ERTMS (e.g. STM)
on-board subsystem to be deployed (hardware and − Costs of actions covering GSM-R
software). The ceiling may be decreased if the component only
vehicle is already equipped with ETCS-compliant
hardware. If there is more than 1 subsystem on a
vehicle, the ceiling applies individually to each
subsystem and not to the vehicle (2015 ERTMS
FAQ 28). The ceiling does not apply to prototypes
− Upgrade – no ceiling
− Development, test and validation of a B3-
compliant on-board unit in a first-of-a-series /
prototype vehicle getting the type approval – no
ceiling
− Training activities, specific ad-hoc expertise to
follow up the project or other necessary support –
for SMEs – no ceiling
INNOVATION AND NEW − Roll out of alternative fuels distribution − Development and demonstration phases of a
TECHNOLOGIES infrastructure new technological solution
 − Mobile equipment – only in studies actions, if − Scrubbers, even if they are part of mobile
secondary to the infrastructure part. In principle, infrastructure
up to 10% of the CEF grant may support mobile − Dismantling of charging stations (2015
equipment costs. Only the financial difference Innovation FAQ 29)
between the innovative solution and the
conventional, usual solution is eligible as mobile
equipment cost (e.g. additional financial effort
between a diesel propulsion and a fuel-cell
hydrogen propulsion). Mobile equipment
supported by the CEF grant must remain
registered & operated in an EU Member State for
at least 5 years. Example: retrofitting of vessels to
use alternative fuels or conversion for LNG
bunkering (2015 Innovation FAQ 14)
− Mobile infrastructure – e.g. mobile refuelling
infrastructure, reach-stackers, bunkering vessels
(2015 Innovation Info Day presentation, page 11)
management systems when required (e.g.
telematics link, charging cable, adaptors, etc.)
compatible ticketing systems
multimodality and interoperability
− Single ticketing – if part of an innovative solution
encompassing more elements, e.g. alternative fuel
− Operating costs – if directly linked to a pilot
deployment and if they meet the general
requirements under Article II.19 MGA (2015
Innovation FAQ 24 and 25)
− Connection of a charging station to the electricity
grid (2015 Innovation FAQ 28)
SAFE & SECURE − Construction of new truck parking areas (2017 − Maintenance activities
INFRASTRUCTURE Safe & Secure Infrastructure FAQ 3)

SESAR − Activities supporting industrialisation of ATM − Costs of activities addressing obligations
 functionalities identified in the Common Projects under EU law (in particular relating to the
− Additional validation activities that are either not Single European Sky) – after the deadline
covered by the SJU or are not receiving EU grants for their implementation
− Forward fit options for airlines, if compliant with
the Call text and the Work Programme (2015
SESAR FAQ 8)
− Man-hours of airline personnel spent on installing
equipment while on the ground, if compliant with
Article II.19 MGA (2015 SESAR FAQ 9)
− Common parts of a system release to modify an
internal system for Arrival Messages (2015
SESAR FAQ 10)
RIS (River Information − Simulation for navigation – as part of the action − Port community systems for inland ports
Services) (2015 RIS FAQ 3) (2015 RIS FAQ 2)
 −
ITS − Also works / pilot activities in areas other than on
 the Core Network, for duly substantiated reasons
-
and as long as the related costs do not exceed 30%
of the total budget
MOTORWAYS OF THE − Costs to comply with MARPOL Convention − Feasibility studies
SEA (MoS) Annex VI and Sulphur Emission Control Area − Market studies
 requirements – may be eligible as part of costs of
− Full cost of acquiring / upgrading /
upgrading MoS links
constructing a vessel – only costs of
− Costs contributing to better environmental additional efforts for environmental
performance of a maritime service (e.g. purposes may be eligible
installations related to on-shore power supply) –
− Open loop scrubbers
may be eligible as part of costs of upgrading MoS
links − Construction of a new multimodal logistics
platform in 1 port only, unless as part of a
− Cost of acquiring / upgrading / constructing a
larger MoS link upgrade action involving at
vessel – but only the cost of additional costs of
least 2 ports and a maritime operator, or
unless as part of a wider benefit action for a
eligible as part of costs of upgrading MoS links
particular maritime region serving a number
Development in port handling facilities, freight
of maritime operators (2015 MoS FAQ 9)
terminals, logistic platforms and freight villages
which are associated to the port operations − Financing of the start-up of a service or
costs of operation of the MoS link (2015
− Superstructure – only within actions open to any
MoS FAQ 13)
user on a non-discriminatory basis, if such
superstructure can be considered as ancillary − Costs of chartering a ship (2015 MoS FAQ
infrastructure necessary for implementation of the 20)
action and/or related to increase of efficiency or − A subsidy for tonne-kilometres shifted from
environmental performance of MoS services. The road transport to the maritime service (2015
superstructure, including ships, will be required to MoS FAQ 20
serve the co-funded actions within the EU area
(i.e. the MoS link concerned – see 2015 MoS FAQ
3) for at least 5 years after the action completion.
Examples include scrubbers and cranes (2015
MoS FAQ 2 and 6). The 10% cap applicable to
Innovation and New Technology actions does not
apply to MoS actions (2015 MoS FAQ 11)
− Investment in ports needed for upgrading a MoS
link, also of non-environmental nature (2015 MoS
FAQ 8)
− Studies such as addressing environmental impact
assessments, technical design studies of
infrastructure, human element aspects in maritime
transport, preparation of ICT applications, better
security measures, etc. for port infrastructure
necessary to accommodate the new/upgraded link
(2015 MoS FAQ 15)
CORE NETWORK NODES − Mobile equipment (purchase or upgrade) – if the − Construction of freight terminals in an urban
 support is limited and not a substantial part of the node (2015 Nodes FAQ 14)
action (2015 Nodes FAQ 4 and 13)
MULTIMODAL LOGISTICS − Further development of existing freight terminals − Buildings, storage and warehouse facilities,
PLATFORMS through small-scale ancillary infrastructure (e.g. cranes, conveyors and other devices for
 connecting or siding tracks, power connections, moving freight, mobile assets such as
adaptations for 740 m train length etc.), ICT locomotives(even if the superstructure is
equipment and applications for the provision or located in an existing terminal: 2015
improvement of information flows within the Multimodal FAQ 4 and 5)
terminal and along the logistic chain − Connections to and development of new
− Studies to enhance the connection of an existing terminals
logistics facility (e.g. by connecting to a further − Costs related to increasing the capacity of
transport mode), if the existing terminal is already freight terminals (2015 Multimodal FAQ 8)
equipped for transhipment between at least two
− Port superstructure (2015 Multimodal FAQ
transport modes (2015 Multimodal FAQ 10)
5)
− AP General Call: maximum costs eligibility date according to the Call for Proposals: 31/12/2020;
− AP Cohesion Call: maximum costs eligibility date according to the Call for Proposals: 31/12/2020;
− MAP General Call: maximum costs eligibility date according to the Call for Proposals: 31/12/2020;
− MAP Cohesion Call: maximum costs eligibility date according to the Call for Proposals: 31/12/2020 (and in reasonable and duly justified
cases: 31/12/2023).

GENERAL RULES UNDER − Full costs of purchase of equipment and − Depreciation costs
ALL CALLS infrastructure treated as capital expenditure − Infrastructure maintenance
 − Support to third parties (grant scheme) – for the − Superstructure such as warehouses, new
Innovation priority only (under   calls) passenger / freight terminals, etc. (except for
− Activities for improved accessibility to transport small-scale ancillary infrastructure, super-
infrastructure for persons with disabilities and structures and equipment under the Freight
persons with reduced mobility – with a ceiling of Transport Services priority – see below)
10% of the total eligible costs of works of the − For   calls: mobile infrastructure, such as
Action (Article 10(2)(b)(v) CEF Regulation) cranes, fork lifts, vehicles, conveyors and
− Ceilings also apply to ERTMS deployment (  other devices for moving freight (except
calls), SESAR ( call only) and to mobile under the Innovation priority – see below)
equipment (for Innovation and Nodes –   calls) − Infrastructure and facilities for tourism (e.g.
– see below cruise ships, cruise ship terminals)
− For   calls: acquiring or constructing new
vessels and retrofitting of fleets
− For   calls: scrubbers (except for exhaust
gas cleaning systems on ships operating on
short-sea shipping routes outside the SECA
area)
− Research activities
− Operating costs
− Losses
− Overhead costs
− Indirect costs
NETWORK (CORRIDORS − For  call only: also costs of projects combining − Maintenance
& OTHER SECTIONS) works on pre-identified CNC sections for railway Inland Waterways & Inland Ports:
 implementation including interoperability
− Waterside terminals/platforms super-
elements, with ERTMS track-side implementation
structure, such as warehouses
PROJECTS ON THE works along the same sections
COMPREHENSIVE − Routine maintenance dredging
− GSM-R component, if part of a broader rail
NETWORK infrastructure action (2016 Core & − Costs of infrastructure which does not
 Comprehensive Network FAQ a.5) directly benefit waterborne transport
operations
− For  call only: electrification of a railway line
located on the Comprehensive Network if it − RIS deployment
addresses a cross border section (2016 Core & − For  call only: studies concerning inland
Comprehensive Network FAQ a.6) ports
Inland Waterways & Inland Ports: Roads:
− Capital dredging − Maintenance
− Rehabilitation dredging – only in connection with Maritime Ports:
global actions that provide for year-round good − Superstructure understood as moveable
navigation status for a given section of the commercially operated infrastructure,
waterway warehouses and others
− Waterside terminals/platforms infrastructure – if − Any maintenance (incl. by dredging – 2016
accessible for use by all operators on a non- Core & Comprehensive Network FAQ e.5)
discriminatory basis (and excluding any
− Dedicated infrastructure / facilities for cruise
superstructure such as warehouses) ships
− ICT applications (in particular pilot Single − Expansion / construction of new cargo /
Window applications, applications to streamline passenger terminals in ports
administrative formalities through a better use of
information, communication and positioning
technologies)
/ hydrological services / dredging – if (i)
accessible for use by all operators on a non-
discriminatory basis, (ii) done to ensure year-
round navigability, and (iii) if part of a wider
Maritime Ports:
Core & Comprehensive Network FAQ e.1)
PROJECTS TO CONNECT Projects to connect the trans-European transport net
WITH NEIGHBOURING work with infrastructure networks of the neighbouring
COUNTRIES countries on the core and comprehensive networks
 -
, in particular related to cross border sections
concerning railways, inland waterways and roads
RAIL INTEROPERABILITY
- − ERTMS-related activities

ERTMS Track-side − Deployment of lines, with a ceiling of € 260 000 − Feasibility studies – unless they are part of a
no ceiling − GSM-R in combination with ETCS level 1
− Preparatory actions – no ceiling (2016 Core & Comprehensive Network
FAQ a.5)
On-board − Retrofit of ERTMS on already existing vehicles, − Cost of works related to Class B systems
deployment with a ceiling of € 250 000 per ERTMS on-board (e.g. STM)
subsystem to be deployed (hardware and software − Costs of actions covering GSM-R
including GSM-R). The ceiling also applies to component only
prototypes (see also 2016 ERTMS FAQ 6)
− Costs of upgrade / retrofit with B2
− Upgrade – no ceiling as a rule, a € 250 000 ceiling compliant equipment (2016 ERTMS FAQ 9)
for prototypes (per ERTMS on-board subsystem
to be deployed, including GSM-R)
− Training activities, specific ad-hoc expertise to
follow up the project or other necessary support –
for SMEs – no ceiling
INNOVATION AND NEW − Roll-out of alternative fuels distribution − Development and demonstration phases of a
TECHNOLOGIES infrastructure new technological solution (e.g. testing and
 − Mobile equipment – only for studies with pilot homologation of a technology – 2016
activities (2016 Innovation FAQ 3), subject to the Innovation FAQ 4)
following conditions: (i) up to 10% (for road − Scrubbers, even if they are part of mobile
equipment) / 30% (for ships and rail equipment) infrastructure
of the eligible costs of the action; (ii) if secondary − Dismantling of charging stations (2016
to the infrastructure part; (iii) only as regards the Innovation FAQ 12)
financial difference between the innovative
− Construction of a LNG production plant –
solution and the conventional solution (e.g.
unless it is a small unit necessary for the
additional financial effort between a diesel
implementation of a broader pilot project
propulsion and a fuel-cell hydrogen propulsion); (2016 Innovation FAQ 22). This also applies
(iv) if it the grant application explains how CEF to devices dedicated to biogas treatment /
support for such equipment will contribute to purification (2016 Innovation FAQ 23)
accelerating the market roll-out planned after the − Infrastructure located on the Comprehensive
trial/pilot; and (v) if the mobile equipment remains network even if it serves the Core Network
for at least 5 years registered & operated in an EU (2016 Innovation FAQ 24)
Member State
− Mobile infrastructure (e.g. innovative cranes,
innovative reach-stackers, innovative fuel supply
vehicles, etc.) – if they are part of the action.
Example: adaptation of a barge for LNG supply
for other vessels (2016 Innovation FAQ 21)
management systems when required (e.g.
telematics link, charging cable, adaptors, etc.)
compatible ticketing systems (only if telematics is
a secondary element in the transport solution)
management, marketing and consumers
multimodality and interoperability for all travel
phases
− Facilities for liquefaction of alternative fuels, if
the fuels are for transport purposes and if the
facilities are connected to stations or are otherwise
indispensable (2016 Innovation FAQ 19). The
liquefaction unit should be a secondary element of
the action (2016 Innovation FAQ 20)
− Rental of land / buildings if it is necessary for the
implementation of the action and can be directly
attributed to it (2016 Innovation FAQ 28)
INFRASTRUCTURE Safe & Secure Infrastructure FAQ 3)

FREIGHT TRANSPORT − Small-scale ancillary infrastructure, super- − Large-scale infrastructure
SERVICES structures and equipment (including on-board − Research
 equipment) - if directly linked to the operations
− Business or production activities which bear
proposed in the action. For the definition and
no direct relation to logistics, transport or
examples of those concepts, see 2016 Freight
distribution
Transport Services FAQ 11
− Operational costs linked to the running of a
− Pipeline infrastructure on a freight terminal – as
service, such as fuel, expenditure for
ancillary infrastructure / superstructure, if directly
technical and administrative staff,
linked to the operations proposed in the action
subcontracting, maintenance, electricity,
(2016 Freight Transport Services FAQ 13)
port fees, insurances, handling costs, etc.
− Tank park to store the rail rank on a freight (2016 Freight Transport Services FAQ 5)
terminal, if indispensable or required by law (2016
Freight Transport Services FAQ 14)
RAIL FREIGHT NOISE − Only freight wagons and locomotives intended for − Replacement, reprofiling or any other action
 freight operations related to wheelsets
− Additional works necessary to achieve the − Shunters, electric multiple units, diesel
objective of the action (e.g. testing, transportation multiple units, railcars, passenger carriages
of wagons to/from a workshop, etc.) if justified
SESAR − Activities supporting industrialisation of ATM − Costs of activities addressing obligations
 functionalities identified in the Common Projects under EU law (in particular relating to the
− Additional validation activities that are either not Single European Sky) – after the deadline
covered by the SJU or are not receiving EU grants for their implementation
− Actions that support early implementation of
instrument approaches utilising PBN – with a
ceiling of € 25 000 per approach under MAP
General Call
− Cost of radio conversion to 8.33 KHz – with a
20% maximum funding rate, including both
equipment procurement and installation costs –
under MAP General Call
− For actions to implement datalink capability in
support to AF6-Initial Trajectory Information
Sharing: only costs of upgrade from Model A to B
(or from Model C to Model C with Multi
frequency) (2016 SESAR FAQ 16)
ITS − Costs of adaptation of automated vehicles (e.g. − Purchase of mobile equipment, e.g.
 sensors, on-board units) (2016 ITS FAQ 5) automated vehicles (2016 ITS FAQ 5)
− Rental of equipment (e.g. technically modified
vehicles to be completely devoted to run tests 'on
vehicle-infrastructure communication') (2016 ITS
FAQ 11)
MOTORWAYS OF THE − Costs to comply with MARPOL Convention − Superstructure units such as port cranes,
SEA (MoS) Annex VI and Sulphur Emission Control Area fork lifts, vehicles (including warehouses or
 requirements – may be eligible as part of costs of trucks used for LNG refuelling of vessels in
upgrading MoS links a port – 2016 MoS FAQ 10 and 28)
− Costs contributing to better environmental − Full cost of acquiring / upgrading /
performance of a maritime service (e.g. constructing a vessel – only costs of
installations related to on-shore power supply) – additional efforts for environmental
may be eligible as part of costs of upgrading MoS purposes may be eligible
links − Costs of EGCS installation on ships
− Cost of acquiring / upgrading / constructing a operating partially within the SECA or on
vessel – but only the cost of additional costs of long distance routes (2016 MoS FAQ 8)
efforts for environmental purposes – may be − Construction of a new multimodal logistics
eligible as part of costs of upgrading MoS links. platform in 1 port only, unless as part of a
Ships receiving CEF support will be required to larger MoS link upgrade action involving at
serve the co-funded actions within the EU area for least 2 ports and a maritime operator, or
at least 5 years after the project end date unless as part of a wider benefit action for a
− All types of EGCS if installed on ships operating particular maritime region serving a number
on short sea shipping routes outside the SECA of maritime operators (2016 MoS FAQ 12)
(2016 MoS FAQ 8) − Financing of the start-up of a service or
− Investments in LNG storage facilities which costs of operation of the MoS link (2016
would serve bunkering ships and/or connect the MoS FAQ 14)
main gas terminal with a bunkering station (2016 − Costs of operating an LNG tanker (LNG
MoS FAQ 17) carrier) (2016 MoS FAQ 15)
− Pavement in an existing terminal – as part of a − Costs of chartering a ship (2016 MoS FAQ
larger investment plan in the terminal; it does not 23)
qualify as superstructure (2016 MoS FAQ 26)
− A subsidy for tonne-kilometres shifted from
− Dredging works – if part of a creation/upgrade of road transport to the maritime service (2016
a MoS link (2016 MoS FAQ 29) MoS FAQ 23)
− Improvement / retrofitting of a ship sailing under a
non-EU flag (2016 MoS FAQ 32)
CORE NETWORK NODES − Mobile equipment (purchase or upgrade): (i) up to
 10% of the CEF grant (as a rule); (ii) if secondary
to the infrastructure part of the action; (iii) only as
regards the financial difference between the new –
technological solution and the conventional
solution (e.g. additional financial effort between a
diesel propulsion and a fuel-cell hydrogen
propulsion); and (iv) if the mobile equipment
remains for at least 5 years registered & operated
in an EU Member State
− Urban bypasses – if associated to transport aspects
such as multimodal and enhanced public transport
services
− Cycling roads (2016 Nodes FAQ 6)
− Development & piloting of bicycle parking
solutions to ensure efficient parking in the urban
node (2016 Nodes FAQ 6)
− Development of international business model for
bicycle park solutions with pilot investments
(2016 Nodes FAQ 6)
− Building up an international network of relevant
stakeholders and suppliers around a bicycle park
solution (2016 Nodes FAQ 6)
− Smart and connected devices – if the criteria for
supporting mobile equipment are met (2016
Nodes FAQ 6)
− Support to transport by cable car, if the applicable
conditions are met (2016 Nodes FAQ 9)
 connecting or siding tracks, power connections, moving freight, mobile assets such as
adaptations for 740 m train length etc), ICT locomotives
equipment and applications for the provision or
− Connections to and development of new
improvement of information flows within the
terminals
terminal and along the logistic chain
− Costs related to increasing the capacity of
− Studies to enhance the connection of an existing
freight terminals
logistics facility (e.g. by connecting to a further
transport mode), if the existing terminal is already − Port superstructure (2016 Multimodal FAQ
equipped for transhipment between at least two 5)
transport modes (2016 Multimodal FAQ 10)
Part 4 – 2016 CEF Synergy Call
This part encompasses the 2016 CEF Synergy Call for actions with synergies between the Transport and Energy sectors.
Maximum costs eligibility date according to the Call for Proposals: 31/12/2019.
SECTOR ELIGIBLE COSTS INELIGIBLE COSTS

TRANSPORT − Full costs of purchase of equipment and − Works
 infrastructure treated as capital expenditure − Depreciation costs
− Mobile equipment – if (i) up to 10% (30% for − Support to third parties (grant scheme)
ships) of the CEF grant applies to mobile
equipment; (ii) if secondary to the infrastructure
part; (iii) only as regards the financial difference
between the innovative solution and the
conventional solution (e.g. additional financial
effort between a diesel propulsion and a fuel-cell
hydrogen propulsion)
− Infrastructure and facilities, including mobile
infrastructure and its interface with vehicles (e.g.
telematics link, charging cable, adaptors) – if part
of the studies
ENERGY − Costs of studies supporting PCIs included in the − Works
energy infrastructure categories set out in Annex − Support to third parties (grant scheme)
II (1) and (2) of the TEN-E Guidelines
− Oil PCIs
− Costs of a study regarding use of energy initially
− CO2 PCIs (not included on the 2nd PCI list)
stored for transport purposes, for energy
transmission grid balancing purposes – subject to
conditions (2016 Synergy FAQ 4.11)
− MAP Blending Call;
− MAP SESAR Call (concerning only the SESAR priority).
MAP Blending Call: maximum costs eligibility date according to the Call for Proposals: 31/12/2023.

GENERAL RULES − Costs of works only − Studies (except for ex-post climate change
 − Full costs of purchase of equipment and impact assessment, if required: it is
infrastructure treated as capital expenditure considered a study and benefits from a co-
funding rate up to 50%)
− Support to third parties (grant scheme) – for the
Innovation priority only − Depreciation costs
− Activities for improved accessibility to transport − For mobile equipment: costs of investment in
infrastructure for persons with disabilities and mobile assets will need to be repaid if within
persons with reduced mobility – with a ceiling of 5 years of the final payment: (i) the mobile
10% of the total eligible costs of works of the assets are relocated outside the programme
Action (Article 10(2)(b)(v) CEF Regulation) area defined in the grant agreement, or (ii) a
substantial change affects its nature,
− Ceilings also apply to ERTMS deployment and
objectives or implementation conditions
SESAR – see below
which would result in undermining its
original objectives.
NETWORK (CORRIDORS − Also costs of projects combining works on pre- − Maintenance
& OTHER SECTIONS) identified CNC sections for railway Inland Waterways & Inland Ports:
 implementation including interoperability
− Routine maintenance dredging
elements, with ERTMS track-side implementation
works along the same sections − Costs of infrastructure which does not
directly benefit waterborne transport
− GSM-R component, if part of a broader rail operations
infrastructure action (2017 Core Network FAQ 5) Roads:
Inland Waterways & Inland Ports: − Maintenance
− Capital dredging Maritime Ports:
− Rehabilitation dredging – only in connection with − Superstructure (it may only be supported by
global actions that provide for year-round good financial instruments, not a grant)
navigation status for a given section of the − Any maintenance (incl. by dredging – 2017
waterway Core Network FAQ e.5)
− Waterside terminals/platforms infrastructure/ − Dedicated infrastructure / facilities for cruise
superstructure, incl. storage and stacking areas ships
− ICT applications (in particular pilot Single − Expansion / construction of terminals (it may
Window applications, applications to streamline only be supported by financial instruments,
administrative formalities through a better use of not a grant)
information, communication and positioning
technologies)
/ hydrological services – if (i) accessible for use
by all operators on a non-discriminatory basis and
(ii) done to ensure year-round navigability
Maritime Ports:
Core Network FAQ e.1)
− Construction of a new berth, if not directly linked
to a capacity increase or expansion of a terminal
(2017 Core Network FAQ e.4)
− Capital dredging if it aims at providing safe
maritime access to ports (2017 Core Network
FAQ e.7)
− Construction of hydrogen power stations to serve
ferries and have public access (2017 Core
Network FAQ e.8)
RAIL INTEROPERABILITY − Deployment of railway radio communication − ERTMS-related activities
 system (GSM-R) for safety-related voice − Replacement of braking blocks in freight
communication (e.g. emergency calls) compliant wagons (2017 Rail Interoperability FAQ 1)
with TSI laid out in Regulation 2016/919 (2017
Rail Interoperability FAQ 2)
ERTMS Track-side − Deployment of lines, with a ceiling of € 260 000 − Studies
 deployment per km of double-track ERTMS-equipped line − Costs of actions related to Class B systems
− Upgrade of lines – no ceiling and/or STM
− Infrastructure works for track-side equipment − Costs of actions covering GSM-R
necessary for ETCS level 2 implementation (e.g. component only (2017 ERTMS FAQ 2)
upgrade / renewal of interlockings, equipment of − GSM-R in combination with ETCS level 1
Radio Block Centres directly related with ERTMS (2017 ERTMS FAQ 2)
functioning, etc.) – no ceiling
− Cost of certification with a notified body- within
the ceiling, if applicable (2017 ERTMS FAQ 13)
On-board − Retrofit of ERTMS on already existing vehicles, − Studies
deployment with a ceiling of € 250 000 per ERTMS on-board − Cost of works related to Class B systems
subsystem to be deployed (hardware and software (e.g. STM)
including GSM-R).
− Costs of upgrade / retrofit with B2
− Upgrade – no ceiling compliant equipment (2017 ERTMS FAQ 8)
− Prototypes – no ceiling
− Maintenance and museum vehicles (2017 ERTMS
FAQ 11)
− Cost of certification with a notified body – within
the ceiling, if applicable (2017 ERTMS FAQ 13)
INNOVATION AND NEW − Roll-out of alternative fuels distribution − Development and demonstration phases of a
TECHNOLOGIES infrastructure new technological solution
 − Mobile equipment, subject to the following − Any other studies, even real-life trials
conditions: (i) only as regards the financial − Scrubbers
difference between the innovative solution and the
− Construction of an alternative fuel
conventional solution (e.g. additional financial
production plant – unless it is a small unit
effort between a diesel propulsion and a fuel-cell
necessary for the implementation of a
hydrogen propulsion) – the remainder may be
broader roll-out project. If the construction
financed under the loan component of the
costs are eligible, also costs of staff trainings
financial blending; (ii) in conjunction with the
and costs of related equipment (e.g.
deployment of relevant infrastructure and not as a
simulators, hardware, software) may be
stand-alone action, (iii) if the mobile equipment
eligible if proportional to the action and
supported by the CEF grant component remains
strictly necessary for its implementation
for at least 5 years registered & operated in an EU
(2017 Innovation FAQ 15)
Member State. Mobile equipment may include
heavy duty vehicles (2017 Innovation FAQ 32) − Infrastructure located on the Comprehensive
network (2017 Innovation FAQ 11)
− Mobile infrastructure (e.g. bunkering ships
transporting alternative fuels to other ships), only − Hybrid (diesel/electric) vehicles (2017
as regards the financial difference between the Innovation FAQ 13)
innovative solution and the conventional solution − Operational costs of mobile equipment, e.g.
− Interoperable infrastructure/vehicle interfaces to fuels, maintenance, insurance, etc. (2017
support use of alternative fuels, including Innovation FAQ 30)
management systems when required
transport, with a view e.g. to enable roaming
compatible ticketing systems (only if telematics is
a secondary element in the transport solution)
management, marketing and consumers
multimodality and interoperability for all travel
phases
− Rental of land / buildings if it is necessary for the
implementation of the action and can be directly
attributed to it (2017 Innovation FAQ 9)
INFRASTRUCTURE  Safe & Secure Infrastructure FAQ 3)
SESAR  − Activities supporting deployment of ATM − Costs of activities addressing obligations
functionalities identified in the Common Projects under EU law (in particular relating to the
− Actions that support early implementation of Single European Sky) – after the deadline
instrument approaches utilising PBN – with a for their implementation
ceiling of € 25 000 per approach − Infrastructure maintenance (2017 SESAR
− Cost of radio conversion to 8.33 KHz – with a Blending FAQ 11)
equipment procurement and installation costs
Sharing: only costs of upgrade from Model A to B
(or from Model C to Model C with Multi
frequency) (2017 SESAR Blending FAQ 13)
− Fleet retrofit (2017 SESAR Blending FAQ 19)
− Personnel training (2017 2017 SESAR Blending
FAQ 19)
− Costs of an integrator who will coordinate all
system modernisation and development (2017
SESAR Blending FAQ 20)
− ILS (2017 SESAR Blending FAQ 21)
ITS  - -
MOTORWAYS OF THE − Costs to comply with MARPOL Convention − Superstructure such as warehouses (it may
SEA (MoS)  Annex VI and Sulphur Emission Control Area only be supported by financial instruments,
requirements – may be eligible as part of costs of not a grant)
upgrading MoS links − Full cost of acquiring / upgrading /
− Costs contributing to better environmental constructing a vessel – only costs of
performance of a maritime service (e.g. additional efforts for environmental
installations related to on-shore power supply or purposes may be eligible
deployment of alternative clean fuels in ports and − Movable assets (they may only be supported
on-board) – may be eligible as part of costs of by financial instruments, not a grant)
upgrading MoS links
− Costs of EGCS installation on ships
− Cost of acquiring / upgrading / constructing a operating partially within the SECA or on
vessel – but only the cost of additional costs of long distance routes (2017 MoS FAQ 7)
− Construction of a new multimodal logistics
eligible as part of costs of upgrading MoS links.
platform in 1 port only, unless as part of a
Ships receiving CEF support will be required to
larger MoS link upgrade action involving at
serve the co-funded actions within the EU area for
least 2 ports and a maritime operator, or
at least 5 years after the project end date
unless as part of a wider benefit action for a
− EGCS but only on ships operating on short sea particular maritime region serving a number
shipping routes outside the SECA of maritime operators (2017 MoS FAQ 12)
− Investments in LNG storage facilities which − Financing of the start-up of a service or
would serve bunkering ships and/or connect the costs of operation of the MoS link (2017
main gas terminal with a bunkering station (2017 MoS FAQ 13)
MoS FAQ 16)
− Costs of operating an LNG tanker (LNG
− Pavement in an existing terminal – as part of a carrier) (2017 MoS FAQ 14)
larger investment plan in the terminal; it does not
qualify as superstructure (2017 MoS FAQ 24) − Costs of chartering a ship (2017 MoS FAQ
− Dredging works – if part of a creation/upgrade of 21)
a MoS link (2017 MoS FAQ 29) − A subsidy for tonne-kilometres shifted from
− Improvement / retrofitting of a ship sailing under a road transport to the maritime service (2017
non-EU flag (2017 MoS FAQ 32) MoS FAQ 21)
− LNG bunkering barge – under particular
circumstances it can be treated as an extension of
port infrastructures, if it provides bunkering
services to LNG-powered vessels operating in the
given MoS link (2017 MoS FAQ 42)
CORE NETWORK NODES − Mobile equipment (purchase or upgrade): (i) only
 as regards the financial difference between the
new technological solution and the conventional
solution (e.g. additional financial effort between a
diesel propulsion and a fuel-cell hydrogen
propulsion); and (ii) if the mobile equipment
remains for at least 5 years registered & operated –
in an EU Member State. Mobile equipment may
include electric vehicles (2017 Nodes FAQ 5)
− Urban bypasses – if associated to transport aspects
such as multimodal and enhanced public transport
services
 connecting or siding tracks, power connections, moving freight, mobile assets such as
adaptations for 740 m train length etc), ICT locomotives
equipment and applications for the provision or − Connections to and development of new
improvement of information flows within the terminals
terminal and along the logistic chain
− Costs related to increasing the capacity of
freight terminals
− Port superstructure (2017 Multimodal FAQ
5)
MAP SESAR Call: maximum costs eligibility date according to the Call for Proposals: 31/12/2023.

SESAR − Full costs of purchase of equipment and − Depreciation costs
 infrastructure which: (i) are treated as capital − Costs of activities addressing obligations
expenditure in accordance with the tax and under EU law (in particular relating to the
accounting rules applicable to the beneficiary; (ii) Single European Sky) – after the deadline
are recorded in the fixed assets account of the for their implementation
beneficiary's balance sheet; and (iii) were
− Infrastructure maintenance (2017 SESAR
purchased in accordance with the procurement
Specific FAQ 9)
rules as specified in Article II.9 of the MGA
− Costs of financial support to third parties (grant
scheme)
− Activities supporting deployment of ATM
functionalities identified in the Common Projects
− Action concerning approach procedures – with a
ceiling of € 25 000 per approach (for both
Common Projects and Other Projects)
− Cost of radio conversion to 8.33 KHz – with a
equipment procurement and installation costs
Sharing: only actions implementing Model D, not
B or C Multi-frequency)
Part 6 – 2018 Transport MAP General Call for Proposals
This part encompasses the 2018 Transport MAP General Call for Proposals.
MAP General Call: maximum costs eligibility date according to the Call for Proposals: 31/12/2023.

GENERAL RULES − Full costs of purchase of equipment and − Depreciation costs
 infrastructure which: (i) are treated as capital − Costs of financial support to third parties
expenditure in accordance with the tax and (grant scheme)
accounting rules applicable to the beneficiary;
(ii) are recorded in the fixed assets account of the
beneficiary's balance sheet; and (iii) were
purchased in accordance with the procurement
rules as specified in Article II.9 of the MGA
− Activities for improved accessibility to transport
infrastructure for persons with disabilities and
Action (Article 10(2)(b)(v) CEF Regulation),
except under the specific objective 7 (Support
infrastructure to enhance multi-modal transport
for passengers through innovative solutions)
− Ceilings also apply to ERTMS actions: see below
RAIL INTEROPERABILITY − Costs of improvement railway safety, including − Rail infrastructure works
 deployment of railway communication system − Maintenance works
(GSM-R) for safety-related voice
− ERTMS-related investments
communication (notably emergency calls) – if
compliant with the TSIs specified in Regulation − Replacement of braking block in freight
(EU) 2016/919 (2018 Interoperability FAQ 2) wagons (2018 Interoperability FAQ 1)
ERTMS Track-side − Deployment of lines, with a ceiling of € 260 000 − Feasibility studies
 deployment per km of double-track ERTMS-equipped line − Costs of actions related to Class B systems
− Upgrade of lines – no ceiling and/or STM
− Infrastructure works for track-side equipment − Costs of actions covering GSM-R
necessary for ETCS level 2 implementation / component only
upgrade (e.g. upgrade / renewal of interlockings) − GSM-R in combination with ETCS level 1
– no ceiling (2018 ERTMS FAQ 1)
− Studies which serve as a basis for launching a
procurement procedure for the ERTMS
trackside deployment – no ceiling
− Costs related to notified body certifications – but
within the ceilings for ERTMS deployment
(2018 ERTMS FAQ 5)
SAFE & SECURE − For Safe and Secure Parkings: construction of − Research, demos and real-life trials
INFRASTRUCTURE new truck parking areas, whether they include
 innovative solutions or not (2018 Safe & Secure
Infrastructure FAQ 3)
INNOVATION AND NEW Improve multi-modality through innovative digital Improve multi-modality through innovative
TECHNOLOGY and space-data based solutions: digital and space-data based solutions:
 − Components (hardware and software) which are − Research, demos and real-life trials
part of the IT systems (2018 Innovation FAQ 1) − Physical infrastructure for the supply of
alternative fuel (e.g. EV charging stations)
(2018 Innovation FAQ 1)
− Alternatively fuelled vehicles (2018
Innovation FAQ 1)
Support infrastructure to enhance multi-modal Support infrastructure to enhance multi-modal
transport for passengers through innovative transport for passengers through innovative
solutions: solutions:
− Measures to enhance independent accessibility -
for passengers with reduced mobility
Digital information systems: Digital information systems:
- -
Support, through digitalisation, for maritime and Support, through digitalisation, for maritime
inland port operations: and inland port operations:
− Costs of ICT/digital equipment, adaptation or − Actions aimed at establishing 'single
upgrade of equipment (e.g. sensors, on-board windows' related to the Reporting
units) – if necessary to achieve the objectives of Formalities Directive (at the national or
the action European level)
− Activities in core network ports (2018 − Infrastructure (basic or superstructure)
Innovation FAQ 2) − Costs of mobile assets
ITS − For C-ITS and automation: costs of equipment, − For C-ITS and automation: costs of
 adaptation or upgrade of vehicles (e.g. sensors, purchase of mobile equipment (e.g.
on-board units) vehicles)
RIS (River Information Services)
- -

MULTIMODAL LOGISTICS General: General:
PLATFORMS − Only costs concerning core airports / core − Costs concerning platforms located on the
 maritime ports / core inland ports / core rail-road Core Network but not in a listed core port
terminals, as identified in Annex II part 2 of the
TEN-T Guidelines -
Connections by road, rail, inland waterways and Connections by road, rail, inland waterways
short sea shipping to freight terminals and/or further and short sea shipping to freight terminals
development of these terminals: and/or further development of these terminals:
− Connections to existing freight terminals, − Buildings, storage and warehouse
including access infrastructure and 'last mile' facilities, cranes, conveyors and other
connections devices for moving freight, mobile assets
such as locomotives
− Further development of existing freight
terminals through small-scale ancillary − Connections to and development of new
infrastructure (e.g. connecting or siding tracks, terminals
power connections, adaptations for 740 m train − Costs related to increasing the capacity of
length, etc.), ICT equipment and applications for freight terminals
the provision or improvement of information
flows within the terminal and along the logistic
chain
Support infrastructure of terminals servicing Support infrastructure of terminals servicing
combined transport operations: combined transport operations:
− Building or upgrading combined transport − Storage and warehouse facilities, mobile
terminals, and building the 'last mile' assets such as locomotives
connections to such terminals allowing the
integration of such terminals to the
Comprehensive Network
− Building the necessary transhipment facilities
for servicing of new mode of transport that was
not available before in an existing combined
transport terminal
− Modernisation of equipment in existing
combined transport terminals to allow
transhipment of different types of load units –
but only terminal-related equipment (e.g. gantry
or rail cranes, conveyors)
ANNEX II
Eligible and ineligible costs under CEF Energy Calls for Proposals
This Annex contains a non-exhaustive list of categories of eligible and ineligible costs specific to the CEF Energy Calls for Proposals (based on
the texts of the respective calls for proposals and INEA's responses to Frequently Asked Questions) and is without prejudice to the general rules
on the eligibility of costs under the Financial Regulation, the CEF Regulation and the Model Grant Agreement, as described in the Guidelines.
2014_Energy Call for Proposals

Maximum cost eligibility date according to the Call for Proposals: not specified.
ELIGIBLE COSTS INELIGIBLE COSTS

− Payments to landowners for options to lease the land may be − Costs of financial support to third parties (grant scheme)
eligible, if strictly necessary for the achievement of the − Indirect costs
objectives of the action (e.g. if there are costs linked to renting
− Hydro-pumped electricity storage works projects (Article 14(2)
the land for the storage of materials necessary for the carrying
TEN-E Regulation) 17
out of the action) (2014 CEF Energy FAQ sect. 12)
− Compensation for changing the status of the land plots where the
pipeline is routed (2014 CEF Energy Call FAQ sect. 12)
2015_Energy Calls for Proposals (2015-1 and 2015-2)

Maximum cost eligibility date according to the Calls for Proposals: not specified.

− Costs of detailed planning studies for infrastructure − Costs of financial support to third parties (grant scheme)
construction (2015-2 CEF Energy Call FAQ 12.5) − Operating costs, such as post-commissioning infrastructure use-
17
Regulation (EU) No 347/2013 of the European Parliament and of the Council of 17 April 2013 on guidelines for trans-European energy infrastructure and
repealing Decision No 1364/2006/EC and amending Regulations (EC) No 713/2009, (EC) No 714/2009 and (EC) No 715/2009 (OJ L 115 25.4.2013, p. 39).
related costs (2015-2 CEF Energy Call FAQ 12.4)
− Indirect costs
− Hydro-pumped electricity storage works projects (Article 14(2)
TEN-E Regulation)
− Costs for acquisition of property rights and easement (e.g. pipeline
rights of way (2015 CEF Energy Calls FAQ 12.1)
2016_Energy Calls for Proposals (2016-1 and 2016-2)

Maximum cost eligibility date according to the Calls for Proposals: 31/12/2020 (2016-1 Call); 31/12/2021 (2016-2 Call).

− Costs of detailed planning studies for infrastructure − Costs of financial support to third parties (grant scheme)
construction (2016 CEF Energy Calls FAQ 12.5); − Operating costs, such as post-commissioning infrastructure use-
− Investment in permanently moored floating assets (e.g. floating related costs (2016 CEF Energy Calls FAQ 12.4)
storage and regasification units), if: − Indirect costs
o such infrastructures contribute to the implementation of a − Hydro-pumped electricity storage works projects (Article 14(2)
PCI as specified in the TEN-E Regulation, TEN-E Regulation)
o the general conditions on the eligibility of costs, including − Costs for acquisition of property rights and easement (e.g. pipeline
conditions regarding purchase of equipment under Article rights of way (2016 CEF Energy Calls FAQ 12.1)
II.19.2(c) MGA) are met,
(2016-2 CEF Energy Call FAQ 12.14)
2016_Synergy: Transport and Energy Call for Proposals

Maximum cost eligibility date according to the Call for Proposals: 31/12/2019.

− Full costs of purchase of equipment and infrastructure treated as − Depreciation costs
capital expenditure − Costs of financial support to third parties (grant scheme)
2017 CEF Energy Call for Proposals
Maximum cost eligibility date according to the Call for Proposals: 31/12/2024.
ELIGIBLE COSTS NON-ELIGIBLE
− Full costs of purchase of equipment and infrastructure which: − Depreciation costs
(i) are treated as capital expenditure in accordance with the tax − Costs of financial support to third parties (grant scheme)
and accounting rules applicable to the beneficiary; (ii) are
− Operating costs, such as post-commissioning infrastructure use-
recorded in the fixed assets account of the beneficiary's balance
related costs
sheet; and (iii) were purchased in accordance with the
procurement rules as specified in Article II.9 of the MGA − Indirect costs
− Investment in mobile assets, if: − Hydro-pumped electricity storage works projects (Article 14(2)
o such infrastructures contribute to the implementation of a TEN-E Regulation)
PCI as specified in the TEN-E Regulation, − Costs for acquisition of property rights and easement (e.g. pipeline
o the general conditions on the eligibility of costs, including rights of way) (2017 CEF Energy FAQ 12.1)
conditions regarding purchase of equipment under Article
o within 5 years from the action completion (unless a longer
period is set in the grant agreement depending on the type
of infrastructure, such as e.g. LNG floating storage and
regasification units):
 the assets are not relocated outside of the location
defined in the grant agreement,
 there is no substantial change affecting the nature,
objective or implementation conditions which would
result in undermining the investment's original
objectives.
If any such relocation / change occurs, the beneficiary shall
inform the Agency and repay the CEF contribution.
− Costs of detailed planning studies for infrastructure
construction (2017 CEF Energy Call FAQ 12.5)
2018 CEF Energy Calls for Proposals (2018-1 and 2018-2)
Maximum cost eligibility date according to the Calls for Proposals: 31/12/2025.
− Full costs of purchase of equipment and infrastructure which: − Depreciation costs
(i) are treated as capital expenditure in accordance with the tax − Costs of financial support to third parties (grant scheme)
and accounting rules applicable to the beneficiary; (ii) are
− Operating costs, such as post-commissioning infrastructure use-
recorded in the fixed assets account of the beneficiary's balance
related costs
sheet; and (iii) were purchased in accordance with the
procurement rules as specified in Article II.9 of the MGA − Indirect costs
− Investment in mobile assets, if: − Hydro-pumped electricity storage works projects (Article 14(2)
o such infrastructures contribute to the implementation of a TEN-E Regulation)
PCI as specified in the TEN-E Regulation, − Costs for acquisition of property rights and easement (e.g. pipeline
o the general conditions on the eligibility of costs, including rights of way) (2018 CEF Energy Calls FAQ 12.1)
conditions regarding purchase of equipment under Article
o within 5 years from the action completion (unless a longer
period is set in the grant agreement depending on the type
of infrastructure, such as e.g. LNG floating storage and
regasification units):
 the assets are not relocated outside of the location
defined in the grant agreement,
 there is no substantial change affecting the nature,
objective or implementation conditions which would
result in undermining the investment's original
objectives.
If any such relocation / change occurs, the beneficiary shall
inform the Agency and repay the CEF contribution.
− Costs of detailed planning studies for infrastructure
construction (2018 CEF Energy Calls FAQ 12.5)
ANNEX III
Eligible and ineligible costs under CEF Telecom Calls for Proposals
This Annex contains a non-exhaustive list of categories of eligible and ineligible costs specific to the CEF Telecom Calls for Proposals based on
the texts of INEA's responses to Frequently Asked Questions issued for each call for proposals. It complements the explanations provided in the
Guidelines and remains without prejudice to the general rules on the eligibility of costs under the Financial Regulation, the CEF Regulation and
the Model Grant Agreement, as described in the Guidelines. Please also see the text of the relevant call for proposals as it prevails over the
responses to FAQs listed in the tables below.
This Annex groups the CEF Telecom calls for proposals in tables corresponding to the respective years in which the calls were launched.
Where for a given call for proposal no information is provided in the relevant table, no specific examples of eligible or ineligible costs were
provided in INEA's responses to the Frequently Asked Questions.
2014_Telecom Calls for Proposals
CALL ELIGIBLE COSTS INELIGIBLE COSTS

eID
N/A (grants awarded as lump sums only) N/A (grants awarded as lump sums only)
EUROPEANA N/A (call managed by the Commission, DG

N/A (call managed by the Commission, DG CNECT)
CNECT)
Safer Internet − Costs of personnel directly carrying out work − Costs of financial support to third parties
under the project (grant scheme)
− Subcontracting costs − In-kind contributions from third parties
− Indirect costs – at a flat 7% rate
− Travel and subsistence: real costs reflected by
actual amounts spent on travel and subsistence
costs of the personnel working on the project
− Equipment costs: depreciation costs, or cost of
rental or lease of equipment and other assets,
as recorded in the accounting statements of the
beneficiary, covering the period for which the
project runs and applying the rate of use for the
project
− Subcontracting costs

GENERAL RULES The categories of costs below may be considered − Equipment depreciation
APPLICABLE TO ALL eligible if they remain within the scope of a specific all − Costs of financial support to third parties
CALLS for proposals: (grant scheme)
− Costs of personnel directly carrying out work − VAT paid by public bodies acting as public
under the project authorities, even if not recoverable
− Costs of purchase of equipment and infrastructure − In-kind contributions from third parties
which is treated as capital expenditure
− Capacity building, implementation,
− Subcontracting costs deployment and governance – as such
− Indirect costs – at a flat 7% rate (e.g. energy, rent,
phone/Internet, other costs not related directly to
the action)
− Software licenses
− Coordination carried out by the coordinator
− Travel costs
− Costs related to capacity building, implementation,
deployment and governance – if covered under the
priority of the specific call
eDelivery - -
eInvoicing − Costs of using an eInvoicing platform compliant
with PEPPOL BIS run by a different commercial
entity
− OpenPEPPOL membership fee if necessary for the
action and to the extent it is incurred during the -
lifetime of the action. Regardless of duration of the
membership a pro rata would be applied for the fee
corresponding to the effective duration of the
action
Public Open Data - -
Safer Internet - -
eProcurement − Communication / dissemination activities, if they − Costs for integrating the European Single
support the dissemination of the e-Certis solution Procurement Documents (ESPD) – this call
(they could be considered support measures) concerns the integration of e-Certis
eHealth - -
eID − Costs of technical changes / adjustments necessary − E-service website translation costs
to enable e-services to be connected to and operate − Set-up of the eIDAS node (integration of a
with the eID and online platform national eIDAS node into the eID core
service platform)
Online Dispute Resolution
- -
(ODR)

GENERAL RULES The categories of costs below may be considered
APPLICABLE TO ALL eligible if they remain within the scope of a specific all
CALLS for proposals:
− Costs of personnel directly carrying out work
under the project (including time spent on
preparation of the final reports)
− Costs of purchase of equipment and infrastructure
which is treated as capital expenditure, such as IT
hardware
− Subcontracting costs − Equipment depreciation
− Indirect costs – at a flat 7% rate (e.g. IT support − Costs of financial support to third parties
given to a beneficiary, rental of office space not (grant scheme)
only used for the purposes of the action)
− VAT paid by public bodies acting as public
− Software licenses authorities, even if not recoverable
− Communication activities arising directly from − In-kind contributions from third parties
requirements imposed by the grant agreement (e.g.
dissemination of information) − Costs of preparation of the grant proposal
− Legal advice and accompanying legal studies
− Training (technical or not) related to the action
− Organising a conference or collaboration /
exchange of ideas initiative, related to the action
− Hackathons / other events based on the data use, if
linked to the activities of the action
− Travel costs
− Renovations and/or repairs of spaces for installing
purchased equipment (e.g. in training rooms), if
necessary for the action implementation
BRIS − Analyses such as: (i) detailing the BRIS Use Case
model, (ii) mapping the BRIS system-wide
requirements, BRIS entity model and BRIS
messaging model specifications to the business
register national systems, and (iii) integrating the
business register back-office(s) with the eDelivery -
gateway, as long as such activities are related to
work for the purposes of enabling business
registers to support the data model and the standard
messages coming from BRIS, which may involve
the upgrade of the existing business registers
EESSI − Distribution, installation and configuration of
RINA in the national domain non-production -
environment
eProcurement - -
eDelivery - − Set-up of domain-specific connectors
eID & eSignature − Costs of technical changes / adjustments necessary − E-service website translation costs
to enable e-services to be connected to and operate − Set-up of the eIDAS node (integration of a
with the eID and online platform national eIDAS node into the eID core
service platform)
European e-Justice Portal − Development of European e-Justice Portal
- (such as the establishment of an online
insolvency register)
Public Open Data − Development of an online data platform to support
the drive towards ongoing compliance with duty of -
care, including in the waste sector
Automated Translation - -
Cyber Security - -
eInvoicing − Costs of accessing the relevant CEN documents -
EUROPEANA - -

GENERAL RULES APPLICAB The categories of costs below may be considered − Equipment depreciation
TO ALL CALLS eligible if they remain within the scope of a specific all − Costs of financial support to third parties
for proposals: (grant scheme)
under the project (including time spent on authorities, even if not recoverable
− In-kind contributions from third parties
which is treated as capital expenditure, such as IT − Costs of preparation of the grant proposal
hardware
− Indirect costs – at a flat 7% rate (e.g. IT support
given to a beneficiary, rental of office space not
− Communication activities arising directly from
dissemination of information)
− Non-technical training related to the action
− Travel costs
BRIS
- -
eID & eSignature − Set-up of the eIDAS node (integration of a national − Set-up of the eIDAS node – in other cases
eIDAS node into the eID core service platform) – than specified in the "Eligible Costs" column
for those Member States that do not yet have their − E-service website translation costs
eIDAS nodes ready and did not benefit from
funding under the 2014 CEF Telecom eID call for
connecting their national eID infrastructure to the
core platform
− Costs of technical changes / adjustments necessary
to enable e-services to be connected to and operate
with the eID and online platform
EESSI − Distribution, installation and configuration of
RINA in the national domain non-production -
environment
European e-Justice Portal − Activities necessary to connect an existing system − Development of the underlying system to be
to the European e-Justice Portal connected (e.g. an online insolvency register)
Cyber Security − Development of security requirements for critical
-
infrastructure security
eDelivery - -
eHealth − Works for harmonising & extracting data among
-
ERN members' databases to feed in the CPMS
− For ePrescription & Patient Summary:
a. Activities supporting the deployment of
generic services by Member States,
enabling the connection of their eHealth
National Contact Point to the EU Cross-
border eHealth Information Services
b. Activities specifically enabling Member
States which are not currently CEF funded,
to implement, test and operate the eHealth
National Contact Point to ultimately allow
them to exchange ePrescriptions and
Patient Summaries
− Activities for setting up the services, testing them
and connecting their eHealth National Contact
Points to the EU Cross-border eHealth Information
Services
eProcurement − Upgrade to the ESPD-EDM version 2 -
eInvoicing − Costs of accessing the relevant CEN documents − PEPPOL AS2 profile
− PEPPOL membership fee (including starting fee) if
necessary for the action
− Update of the AS2 protocol in PEPPOL to AS4
− Development of 1 centralised Enterprise Resource
Planning (ERP) system with separate login access
for each member of the beneficiaries' consortium,
as long as the set-up of the system is necessary and
will ensure compliance with EN
eTranslation - -
EUROPEANA - -
Public Open Data − Extension of existing services which will lead to -
provision of new services
− Equipment such as IT hardware
2018-1_Telecom Calls for Proposals

GENERAL RULES The categories of costs below may be considered − Equipment depreciation
APPLICABLE TO ALL eligible if they remain within the scope of a specific all − Costs of financial support to third parties
CALLS for proposals: (grant scheme)
under the project (including time spent on authorities, even if not recoverable
− In-kind contributions from third parties
which is treated as capital expenditure (such as IT − Costs of preparation of the grant proposal
hardware)
− Indirect costs – at a flat 7% rate (e.g. IT support
given to a beneficiary, rental of office space not
− Communication activities arising directly from
dissemination of information)
− Non-technical training related to the action
− Travel costs
eID & eSignature − Costs of technical changes / adjustments necessary − Set-up of the eIDAS node
to enable e-services to be connected to and operate − E-service website translation costs
with the eID and online platform
EUROPEANA - -
Safer Internet - -

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EUROPEAN COMMISSION

Innovation and Networks Executive Agency

Guidelines on the Eligibility of Costs

2. ELIGIBILITY OF COSTS – GENERAL REQUIREMENTS ................................... 4

3. ELIGIBILITY OF COSTS – SPECIFIC CATEGORIES OF COSTS ..................... 8

LIST OF ANNEXES: ................................................................................................................... 32

2. ELIGIBILITY OF COSTS – GENERAL REQUIREMENTS

Example (affiliation links):

Below is a (non-exhaustive) list of situations which may point to an affiliation

• if several entities, instead of obtaining a grant themselves, create an European

• a company directly or indirectly controlled the beneficiary (subsidiary /

• a company directly or indirectly controlling the beneficiary (parent /

Implementing body: a public or private undertaking or body designated by a

Example (advance or down payments):

− Costs of services or equipment supplied to carry out the action may be

Examples (costs incurred before the start date of the action):

Examples (costs with no direct connection to the action):

− The purchase or lease of a car or of IT equipment follows the general rules

− Membership fees paid to a professional association will not be eligible if

Example (costs incurred by EEIG members without a formal designation in

When dealing with private companies, EEIGs or other forms of cooperative

The concept of correctly matching estimated costs and expected achievements is

Example (unreasonable / unjustified costs):

3. ELIGIBILITY OF COSTS – SPECIFIC CATEGORIES OF COSTS

3.1.1. General requirements

Important: costs of staff under non-employment contracts or seconded

− they work under conditions similar to those of an employee (in particular

− the result of their work belongs to the beneficiary (unless exceptionally

− the use of "civil" contracts concerns non-regular functions and specific

3.1.2. Staff costs versus implementation contracts

Costs of implementation contracts (contracts for the supply of services) cannot

The beneficiary entrusts services to a company (legal person) for the

3.1.3. Time recording system

A CEF beneficiary declaring personnel costs should provide evidence of such

− If the beneficiary has no adequate time recording system in place, it is

− As an exception, for persons working exclusively on the co-funded

Examples (common errors in time recording systems that could lead to

− The beneficiary declares more hours than recorded in timesheets.

− Inconsistency between declared hours and HR absence records for leave /

− Declaration of unpaid overtime as a cost.

3.1.4. Calculation of productive hours

The above-mentioned Commission decision on the reimbursement of personnel

(1) If the employment contract, applicable collective labour agreement, or the

Annual productive hours = {Annual workable hours of the person} plus

The beneficiary applied a standard number of annual hours (1 700 h) based on

3.1.5. Calculation of hourly rates

The above-mentioned Commission decision on the reimbursement of personnel

− those practices constitute the beneficiary's usual cost accounting

− the costs declared can be directly reconciled with amounts recorded in

The hourly rate calculation ('unit cost') is determined as follows:

Actual annual personnel costs are calculated according to the participant's

− the cost accounting practices are applied in a consistent manner, based

− they ensure compliance with the non-profit requirement and the

(2) Individual (actual) hourly rates.

This situation is addressed in the above-mentioned Commission decision on the

Under CEF, if a beneficiary, an affiliated entity or an implementing body has an

3.1.7. Selected categories of staff-related costs

• Overheads declared in the personnel cost calculation