Eligible costs are the actual costs incurred by the third party for their in-kind benefits, even if the recipient received the contribution in kind free of charge and not for compensation. If the in-kind contribution has been made available free of charge, the funds received are considered to be project revenue. In all cases, the third party and the type of contribution in kind must be listed in the GA. However, they do not sign the grant agreement with the European Commission. They also do not receive direct payments from the EU. This means that the beneficiary is fully responsible for the work performed by the third party. However, as with the beneficiary, third parties are subject to the controls of EU agencies. Question: Can a related third party charge costs for contracts, subcontracting and in-kind contributions? Answer: Yes. Statement: Related third parties are subject to the same accounting rules as beneficiaries and can therefore also charge the costs of contracts, subcontracting and in-kind services. Their estimated costs must be indicated in the project budget (Annex 2), but are not reimbursed and are not taken into account in calculating the amount of the grant. Related third parties are not beneficiaries, but perform tasks within the project and report their own costs (non-profit rule!) in a separate financial statement. They are subject to the same eligibility rules as beneficiaries.
Related third parties are eligible if they are mentioned in the Grant Agreement (GA) and their duties. Third partners may only be parent/subsidiaries/associated companies of a beneficiary (“related companies”) and organizations with a legal relationship with a beneficiary. Consortia that provide financial support to third parties under horizon 2020 are referred to the “Guide to Financial Support to Third Parties under the H2020 Program.” Question: How will the costs of related third parties be allocated to the proposal? Answer: The costs of a related third party should be charged to the beneficiary to whom it is related (i.e., the staff costs of the related third party will be added to the recipient`s staff costs; other direct third-party related costs will be added to the recipient`s other direct costs, etc.). Exception: in innovation actions (AI), the costs of the related third party must be indicated separately from the beneficiary`s costs. Financial assistance to third parties can also take the form of prizes. For more information on the specific conditions, see Article 15.2 GA. Failure to meet the above requirements may result in a reduction in the subsidy. Question: Can a beneficiary be at the same time a subcontractor of a related third party from another beneficiary? Answer: No. Explanatory note: subcontracting between beneficiaries of the same measure is not eligible. Since related third parties are subject to the same accounting rules as beneficiaries, this rule must be applied accordingly. Please note that as third parties do not sign the GA, the beneficiary remains accountable to the European Commission.
