Information for potential applicants and partner organizations from Serbia about VAT on projects which will be financed within Interreg IPA Romania – Serbia Programme

Having regard to Article 64 of EU Regulation 2021/1060 which stipulates that Value Added Tax is not eligible expenditure, except for operations the total cost of which is below 5 million euros (including VAT) and for operations the total cost of which is at least 5 million euro(including VAT) where it is non–coverable under national VAT legislation,

Annex F to the Guidelines for Applicants, approved by Monitoring Committee Decision No. 2 of 19 September 2022, which stipulates that value-added tax (VAT) is not eligible, except where it is non-recoverable under national VAT legislation,

Republic of Serbia will not have legal grounds for VAT exemption for costs incurred within Cross-border Cooperation Programme with Romania in programming period 2021-2027, therefore VAT exemption will not be performed.

This further implies that costs in relation to procurement of services, supplies and works are eligible in gross amount meaning with VAT included. Future applicants should make sure that parts of their project budget referring to Serbian partners include also VAT.

Additional note: When filling in Annex 2 Project Partner Statement, under point 8, field referring to VAT for Serbian partners should stay UNTICKED.