Eligible Expenses (Subsidy)

What defines an eligible expense in a subsidy programme?

An eligible expense is a cost that meets all programme conditions: falls within the approved scope, is incurred during the eligibility window, is properly documented with itemized invoices and proof of payment, involves a registered supplier, and complies with any rules on cost categories such as VAT treatment. A technically sound renovation cost may still be ineligible if it violates any single rule. Eligibility is determined at the invoice stage when the programme administrator reviews reimbursement claims. The most common rejection reason is not poor workmanship, but administrative non-compliance: missing documentation, work done outside the approval window, or expenses outside the approved measure list.

What role does timing play in expense eligibility?

Timing is often the decisive factor. Each programme defines an eligibility window: a start date (typically the approval or contract date) and an end date (project completion or reimbursement deadline). Work performed before the window opens is not eligible, even if approved later. This is a hard rule across Slovak programmes like Obnov Dom and Zelená Domácnostiam. Applicants who begin work before subsidy approval takes on full financial risk for pre-approval costs. Invoices for materials ordered or labour performed before the eligibility window opens will be rejected at reimbursement, regardless of invoice accuracy. Always confirm exact eligibility dates in writing with the programme administrator before placing any orders.

What documentation chain is required to prove a cost is eligible?

Eligible expenses must be supported by a complete documentary chain:

• Itemized invoice specifying work performed (e.g., "External wall insulation, south facade, 150 m2, mineral wool 120 mm"), unit price, total cost, and date. Generic descriptions like "Insulation work" are insufficient.
• Proof of payment: bank transfer receipts, credit card statements, or cheques traceable to contractor and supplier. Payer name must match the subsidy applicant.
• Contractor certification: confirmation the contractor meets any qualification requirements (registered business, liability insurance, accreditation).
• Completion documentation: photographs before and after, handover certificates, or inspection reports confirming work completion.
• Scope alignment: evidence the invoice corresponds to an approved measure. If approved scope lists "north and east facades only," an invoice for all four faces will be partially rejected.

Missing any element typically results in rejection. Subsidy administrators cross-check all elements before releasing reimbursement.

What are common cost categories and their eligibility status?

Cost Category	Eligibility	Key Conditions
Materials (insulation, windows, heating systems)	Fully eligible if in scope	Must be from registered suppliers; quantity must match approved specification
Labour (installation, assembly)	Fully eligible if contractor-performed	Owner labour not eligible; contractor must be registered; invoice must itemize by location and measure
Energy audit or building certification	Partially to fully eligible	Some programmes cap professional fees at 5-10% of project cost; check your programme rules
Project design or technical documentation	Often eligible	Architect or engineer fees typically eligible; may be pro-rated if design covers work outside subsidy scope
Equipment rental (scaffolding, lifts)	Usually eligible	Rental costs typically eligible; owner-provided equipment is not

How are VAT and other taxes treated in eligible expenses?

VAT treatment is programme-specific and must be verified in call documentation. Most Slovak renovation subsidies calculate reimbursement on net costs (before VAT). If a contractor invoices 1000 EUR net plus 200 EUR VAT, the subsidy covers only 1000 EUR, not 1200 EUR. You pay the full 1200 EUR to the contractor; the subsidy covers only the net portion. This distinction matters significantly for budgeting. If a subsidy covers 11,000 EUR and you assume that includes VAT, the actual eligible reimbursement may be lower. Additionally, VAT is recoverable only if your business is VAT-registered; residential homeowners typically cannot recover VAT and bear the full tax cost.

When are professional fees and assessments eligible?

Professional services are often eligible but subject to programme-specific rules and caps. An energy advisor consultation may be fully eligible in one programme and partially eligible in another. An energy performance certificate required by the programme is typically 100% eligible; an optional audit may be partially or not eligible. Professional fees are frequently subject to pro-rata treatment: if your project includes both eligible measures (wall insulation) and ineligible improvements (painting), and an architect's fee covers design for the entire project, only the portion attributable to eligible measures is reimbursable. If design costs are 2000 EUR and design time is allocated 70% to insulation and 30% to painting, only 1400 EUR is eligible.

What happens when only part of a work item qualifies?

Pro-rata treatment applies when an invoice item partially falls within and partially outside the approved scope. If your approved scope specifies "wall insulation on north and east facades" but the contractor invoices "external wall insulation, 500 m2, all facades," reimbursement will be reduced proportionally. If north and east facades represent 60% of the total area invoiced, only 60% of labour and materials is eligible. Similarly, if a roof replacement invoice includes both roof covering (eligible) and gutter replacement (not eligible), the invoice must itemize costs separately. A combined invoice for work that is partly eligible and partly ineligible must be split or faces rejection.

Scenario	Outcome	Prevention
Work before eligibility window opens	100% rejected	Confirm eligibility start date in writing; do not begin work until approval confirmed
Invoice lacks itemization; is generic	Rejected or requested for amendment	Provide contractor with approved scope; request itemized invoice matching each measure
Payment made in cash; no receipt	Rejected; payment unverifiable	Pay only by bank transfer, credit card, or cheque; retain all documentation
Invoice for work outside approved scope	Rejected or pro-rated	Obtain written scope approval before work; ensure contractor invoices only approved items
Contractor lacks registration or accreditation	Rejected regardless of invoice quality	Verify contractor status with programme administrator before signing any contract

How do I ensure my expenses will be accepted at reimbursement?

Obtain a written, detailed list of approved measures from the programme administrator. This approved scope is your reimbursement map. Before signing any contractor agreement, share the approved measures and ask them to confirm in writing that their invoice will match this scope exactly, with itemization by measure and location. Require contractors to invoice only approved work, separating costs by measure. Request that professional fees be separately itemized and clearly linked to eligible measures. Insist on payment by bank transfer and retain all receipts and bank statements. Photograph work before, during, and after completion. When reimbursement documentation is ready, submit promptly and follow up if the administrator requests clarification. This systematic approach prevents most rejection scenarios.