Value added tax
Value added tax is also paid out of funding granted by the Research Council of Finland, provided that the VAT remains to be paid by the funding recipient, and the recipient is not entitled to deduct VAT costs in the accounting. If the VAT does not remain as a final cost for the organisation, it cannot be included in the costs of a project funded by the Research Council. The funding recipient must not be overcompensated by the payment of costs that will not remain as its final costs.
Please check the VAT practice from the finance administration of your organisation. VAT can be paid from the granted funds if it remains a final cost for the beneficiary.
In the online application (under ‘Funding’), answer the question: Other costs include VAT: Yes/No.
Yes:
- VAT can be included in the cost estimate when the site of research is a university, a municipality, a central government agency, a government research institute or public body (i.e. the VAT remains as a final cost for the organisation).
- In the application (under ‘Funding’ > ‘Cost estimate’), enter the project’s estimated costs including VAT.
No:
- VAT cannot be included in the cost estimate when the site of research is an organisation engaged in business activities, such as a university hospital, wellbeing services county or business company (i.e. the VAT is deductible).
- In the application (under ‘Funding’ > ‘Cost estimate’), do not include VAT at all. That is, enter the project’s estimated costs without VAT.
NB! The VAT information is usually filled in automatically on the application if the site of research and the institution have been selected. If the field is empty, please check the VAT practice from the finance administration of your organisation.
