A flat rate is a form of simplified expenditure reporting in which a certain category of project cost is calculated as a fixed percentage of another category, without the obligation to submit accounting documents. EU legislation offers several standard rates: indirect expenditure can be reported as a flat rate of up to 7% of direct eligible expenditure without any justification, or up to 15% of direct staff costs; staff costs can be set at up to 20% of other direct expenditure; and the highest flat rate, 40% of direct staff costs, covers all remaining project expenditure, which is used mainly for ESF+ projects. The specific rate is set bindingly by the call and cannot be changed. The advantage of flat rates is a predictable budget and minimal administration for payment requests, since the provider checks only the base from which the percentage is calculated. The recipient, meanwhile, actually uses the flat-rate funds for operating costs such as energy, accounting, or office overheads.
See also: Indirect costs.
