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14 - VAT REGIME
Is exemption from VAT foreseen within the Italy-Croatia Programme?
answer
No VAT exemption is applicable to operations funded by the Italy-Croatia Programme. In line with provisions included in Factsheet n. 3 “Project Development”, the Value Added Tax (VAT) cannot be considered an eligible cost, except where it is not recoverable under national VAT legislation. Therefore, for entities which cannot recover the VAT under national VAT legislation, the VAT is an eligible cost and shall thus be included in the project budget.