The project “Ensuring payroll expenditure to support the implementation of the SAŽP IB in 2020” is aimed at financing the salaries of employees of the Slovak Environment Agency (SAŽP) – administrative capacity and staff carrying out support activities as well as compensation of non-employment employees involved in the preparation, implementation, management, monitoring and control of the OP KŽP in 2020. The implementation of the project activities will create the basic precondition for ensuring stable, high-quality and motivated administrative capacities of SAŽP as the IB for the OP KŽP. The planned number of administrative capacities financed by the project is 120, the duration of the implementation of the project is 12 months. In accordance with UV No 181/2017, a number of 120 administrative capacities were approved for SAŽP to support the implementation of projects of the IOE OP. The result of the project is sufficient and qualified staffing for the implementation and management of the EIA OP as well as ensuring the prevention or reduction of turnover of staff involved in the implementation of the OP ALC. The Slovak Environment Agency, as a contributory organisation of the Ministry of the Environment of the Slovak Republic, is linked to the budget of the Ministry of the Environment. In addition to these resources, it raises non-repayable funds from grants and projects provided by EU funds or from the national budget. That income is not income generated by an economic activity and therefore, in that activity, SAŽP cannot be referred to as a taxable person. It follows from the foregoing that the revenue is not subject to VAT and that it is not possible to deduct VAT on the costs incurred. In those circumstances, SAŽP is not a taxable person for VAT. In addition to the above, the wage expenditure covered by the project “Securing salary expenditure to support the implementation of IB SAŽP in 2020” is not subject to VAT. However, SAŽP also manages its own resources obtained by economic activity in accordance with the extract from the trade licence register No 601-10745. It uses these funds as a priority to improve the services provided in the field of main activity. The income earned in this activity is taxable income in accordance with Section 2 of the VAT Act – subject to tax. VAT deductions may be applied to costs related to their economic activity. For this reason, the SAŽP is registered for value added tax (VAT) pursuant to Section 4 of Act No 222/2004, with the assigned VAT number SK2021125821. The duration of the project is from 01/2020 to 12/2020, i.e. 12 months. The place of implementation of the project is the whole territory of the Slovak Republic. Within the project, the activities fall under the specific objective: 5.1.1 Ensuring effective implementation of the programme.