A:

Here is another case where there is unlikely to be lack consistency between countries and even organisations within the same country. The organisation needs to indicate that the cost is reasonable, justifiable and actual. 

1.       Payment must be made – even if to employee as opposed to third party. In some countries these payments may be taxable in the employees hands

2.       The basis of payment needs to be consistent with the “normal” accounting procedures for the organisation (and possibly the country). For example the reimbursement to the employee may be per kilometre, based on a State published rate for the type of car/car size used. The expense will then be the “official” rate multiplied by the actual kilometres. Alternatively the petrol may be reimbursed against invoices – proportioned on normal car fuel consumption per Km - (remember the VAT problem) and an allowance for repairs, depreciation, insurance licence etc added. All employees using cars should be reimbursed on same basis – whether EU project staff or not.

3.       Need to note Km of car before and after trip, and give brief description of route and total Km

4.       Need to show comparison of cost by car and the above basis against other means of transport – rail bus and air. If car cost higher then need to justify on basis of time “efficiency” etc