Common use of NON-ELIGIBLE EXPENDITURES Clause in Contracts

NON-ELIGIBLE EXPENDITURES. The following costs shall not be considered eligible: • indirect expenditures; • interest on debt, debt service charges and late payment charges; • charges for financial transactions and other purely financial costs (e.g. bank service charges, currency exchange services, charges for setting up an account and for maintaining an account, charges for bank transfers); • provisions for losses or potential future liabilities; • exchange losses; • recoverable VAT, i.e. VAT with the right to deduct input tax; • paid tax (road tax, real estate tax, gift tax, inheritance tax etc.) and customs duties; • administrative fees (extract from the land register, extract from the commercial register etc.); • expenditures covered from other sources or to be claimed as eligible under other subsidy programmes; • fines, penalties, financial punishments, sanctions and costs of litigation, except where litigation is an integral and necessary component for achieving the outcomes of the project/ programme/ initiative and is included in the detailed budget; • costs of legal disputes. In addition, such expenditures which do not meet the conditions of the time, connection with the content of the project and its budget, or other relevant reasons in accordance with the provisions of this Agreement will also be identified as ineligible.

NON-ELIGIBLE EXPENDITURES. The following costs shall not be considered eligible: •  indirect expenditures; •  interest on debt, debt service charges and late payment charges; •  charges for financial transactions and other purely financial costs (e.g. bank service charges, currency exchange services, charges for setting up an account and for maintaining an account, charges for bank transfers); •  provisions for losses or potential future liabilities; •  exchange losses; •  recoverable VAT, i.e. VAT with the right to deduct input tax; •  paid tax (road tax, real estate tax, gift tax, inheritance tax etc.) and customs duties; •  administrative fees (extract from the land register, extract from the commercial register etc.); •  expenditures covered from other sources or to be claimed as eligible under other subsidy programmes; •  fines, penalties, financial punishments, sanctions and costs of litigation, except where litigation is an integral and necessary component for achieving the outcomes of the project/ programme/ initiative and is included in the detailed budget; •  costs of legal disputes. In addition, such expenditures which do not meet the conditions of the time, connection with the content of the project and its budget, or other relevant reasons in accordance with the provisions of this Agreement will also be identified as ineligible.