Flat Rate WBSO vs. Actual Costs and Expenses in the WBSO Subsidy. What to choose?
As an innovative entrepreneur, you naturally want to get everything out of the WBSO subsidy that's in it. But when applying for this subsidy, you face an important choice: do you go for the flat-rate WBSO method or do you opt for the actual costs and expenses in the WBSO? Both methods have their own advantages, and the right choice depends on your specific situation. Since you only get to choose once a year for all projects, it is so important to make the right choice. Let's take a closer look at them!
What are the two methods?
The flat-rate R&D method is simple and based on standard amounts established by the RVO. You declare the hours you spend on research and development (R&D) without having to keep track of all specific costs and expenses. For each R&D hour a fixed amount is awarded, regardless of what you actually spent on that hour. The hourly rate is set at €29 per hour. An additional €10 per hour is added for overhead costs (for the first 1800 hours, after that it becomes €4 per hour).
The main advantage of the flat-rate WBSO method is convenience. You don't have to keep extensive records of every euro you spend. All you have to keep track of are the hours you spend on R&D. This makes the process much less time-consuming. So for smaller projects where labor costs exceed costs and expenses, people are more likely to choose the flat-rate method.
Actual Costs and Expenses. In this method, you declare not only the hours, but also the actual costs and expenses you incurred for your R&D projects. These can be expenses for materials, prototypes, software, and even external services directly related to your project. Think of the rent of a building. However, you must keep detailed records to account for all these costs. This option also keeps the €29 per hour, but changes the overhead costs to actual costs and expenses.
For larger projects with many different (large) cost items, this option is often chosen. Think of expensive materials, external services, purchase of special equipment or tools, rent of premises, etc. These costs can, under certain conditions, be deducted in part and will then be reimbursed in part. A disadvantage is that this also creates a greater administrative burden; you have to keep track of exactly what you spend.
Which method suits your business?
When choosing between the flat-rate WBSO method and the actual costs and expenses method, it is important to thoroughly evaluate your project. Consider the extent of your expenses and how much time you can and want to spend keeping the necessary records. You should also think about the projects you expect to do that year; in fact, you can choose one per year.
We understand that after reading this blog, it's still a tough choice. Of course, we are here to help you. Get in touch and start your WBSO now!
