VAT exemption for the EU programmes – Erasmus+
The VAT exemption procedure is conducted in harmonization with the dynamics of the implementation of the contract activities. In this regard, a contractor/beneficiary of a grant may submit a VAT exemption request for each account individually.
Additionally, an invoice shall be submitted as well, (or an account, in case the value cannot be pre-determined due to the nature of the service provided). An invoice must include the amount of the costs for the service provided/works performed/goods purchased without VAT, the amount of VAT and the total amount (the amount of costs for the service provided/works performed/goods purchased including VAT).
In addition to the above-mentioned, an invoice must include the following data:
– Date of issuance
– Contract title
– Contract number
– Name of a contractor or issuer of an invoice
– The address of a contractor or issuer of an invoice
– TIN (tax identification number) of a contractor or issuer of an invoice
– The bank account number of a contractor or issuer of an invoice
In addition to the VAT exemption request, a contractor/beneficiary of a grant shall submit a certificate on contract registration. Namely, after the signing of a contract, a contractor/beneficiary of the grant is obliged to register a contract at the Ministry of Foreign Affairs and Directorate General for Consular Affairs which issues a certificate on contract registration.
The body that is in charge of conducting the VAT exemption procedure for the Erasmus+ programme is the MINISTRY OF EDUCATION.
Based on the submitted VAT exemption request, the Ministry of Education prepares a VAT exemption certificate that shall be delivered to a contractor/beneficiary of the grant, as well as to the tax authority, within 5 days starting from the day of issuance.
The VAT exemption is carried out on the basis of the total amount of the bill, including the part of the EU funds and co-financing. The VAT exemption is carried out at the level of individual accounts, and not at the level of the contract.
The competent body for issuing the certificate and a contractor/beneficiary of the grant (importer, product supplier, service provider or beneficiary of a grant) are obliged to keep records on the issued certificates and the purpose to which the tax exemption is related to, (in particular by type, quantity and value of the products and services).