Starting from June 2008 Lithuanian public research oganizations can apply for national co-funding of FP7 projects. Agency fo International Science and Technology Development Programmes (a national institution coordinating FP7 in Lithuania) in cooperation with the Ministry of Education and Science of the Republic of Lithuania has issued national rules for co-funding of FP7 projects. Since Community financial contribution usually does not cover 100 percent of the FP7 project costs, the Lithuanian FP7 projects participants may opt for co-funding from national budget. However, the developed rules foresee that the total requested Community funding plus national co-funding cannot exceed 100 percent of the total eligible costs. Subject to the state aid rules national co-funding will be provided to state universities, state research institutes, state university research institutes and state research establishments. National participants in FP7 as well as in FP6 projects can also apply for annual reimbursement of VAT costs (which is implemented since 2004).