is the budget VAT inclusive?
The Grant is not considered by the LDA to be a contract for services and the payment of Grant is therefore not considered to be subject to VAT. Therefore organisations may not charge VAT in addition to the claim value and the project expenditure cannot include any expenditure on recoverable VAT. Unrecoverable VAT is eligible expenditure for ESF purposes. However, organisations should take professional advice in relation to the VAT treatment of payments (i) to be made to them by the LDA and (ii) to be made by them to Sub-Grantees and subcontractors in connection with the Project. If HM Revenue and Customs subsequently rule that VAT is payable, then the Grant amount will be considered to be inclusive of any VAT and the LDA will not be obliged to make any additional payment in respect of VAT which may become payable as a result of the HM Revenue and Customs decision. Similarly, if you become liable to pay VAT in relation to payments due to any Sub-Grantee or sub-contractor and such VAT re
