1. Which values - net or gross - should be presented in the budget? What does it mean that VAT is eligible or ineligible?
Polish Beneficiaries may plan the budget in net or gross values depending on the possibility of VAT recovery.
If the Polish Beneficiaries have no legal option (on the basis of a specific national law provision) to recover the VAT incurred, such a tax is eligible within the project and the costs in the budget are presented in gross values.
If the Beneficiaries are able to recover VAT (please note that it concerns the possibility and not the plans of its recovery), they put net amounts in the budget.
Beneficiaries from Belarus and Ukraine, who have to register a project in their country, as a rule are VAT exempt, therefore they present net amounts in the budget.
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