When managing projects funded by the European Commission (EU), it is essential to correctly declare equipment costs to ensure compliance and eligibility. Indeed, the rules for accounting for equipment vary depending on whether the equipment is purchased or used for a partial period and whether it is dedicated exclusively to the project or not.
The total purchase cost of equipment generally cannot be fully charged to the project. In most cases, only the portion corresponding to depreciation — calculated based on the project duration and the actual use of the equipment — can be declared as an eligible cost. For example, under the Horizon Europe program: “Only depreciation costs incurred during the project period can be reimbursed and only for the time the equipment is used for the project.”

Depreciation must comply with your organization’s usual accounting practices as well as national accounting standards. The depreciation cost must be calculated for the period of use within the project and the equipment must be recorded in your fixed assets register. According to a guidance note: “The devices … must be depreciated according to internally defined useful life. Only depreciation costs incurred during the project can be claimed.”

If the equipment was purchased before the project started, you can only declare the portion of depreciation corresponding to the time it was actually used for project activities. You must also be able to demonstrate its use, for example via a usage log or an allocation key. On this point: “If equipment is not used exclusively for the EU project, depreciation can only be claimed in proportion to the respective use.”
Exceptionally, the total purchase cost can be charged only if the equipment is used entirely and exclusively for the project throughout its useful life and is not used for other purposes after the project ends. These cases must be explicitly authorized in the grant agreement. For example, certain equipment cost lines in EU calls specify that the equipment must be allocated exclusively to the project.

In case of inspection, control, or audit, ensure you have the following supporting documents:

• Purchase, delivery, and installation invoices for the equipment
• Depreciation plan or accounting record demonstrating use during the project period
• Proof of use (machine log, allocation sheet, usage key)
• Registration in your organization’s fixed assets register

Finally, it is important to respect the principles of “best offer,” completion of the equipment before the start of the eligible period, and compliance with public procurement rules. These good practices help secure the eligibility of equipment-related costs in EU-funded projects.