The European Union (EU) and the United States generate almost 50% of global GDP. Opening up to the European market is a way to expand our capabilities and reach new sellers. There wasa British company and fulfillment provider, has developed one Tips for “effective” expansion in the UK and EU. Specifically, the report answers some of the most frequently asked questions from sellers about why, how and when to use a fulfillment partner, the affordability of 3LP fulfillment, and EU and UK tax law.
According to the guide, international growth is about opening up new territories and reaching new customers without necessarily having a physical business center in every location. At this point is highlighted Compliance outsourcing This allows the seller to build a customer base before investing in local infrastructure.
When should you use a logistics service provider for sales abroad?
A retailer needs a physical presence in a country to compete with local brands. At this point, a 3PL solution It offers ease and flexibility, especially when a seller wants to focus on growth. Another important point for US traders looking to expand into Europe is choosing a good logistics center location. Also choose a “trustworthy” fulfillment partner This is very important when expanding into new territories.
Tips for selling in the EU and UK
In There was They offer a bespoke fulfillment service and network of centers. In addition, the company has its own customs compliance team that can offer advice and assistance to merchants when entering new markets.
With this in mind, the guide explains that when selling to Europe as a non-EU company, there are a number of conditions to consider:
If the sale is made through a marketplace and the inventory is within the EU, you must be VAT registered at each location where the inventory is stored. In this case, the merchant uses the IOSS tax identification number From the market. On the other hand, if the inventory is outside the EU and the value of the shipments is less than 150 euros, the market takes responsibility for the collection and collection of VAT on imported goods from EU customers.
Yes The sale takes place via an online shop and the stock is within the EU, as in the previous case, the seller must be registered for VAT in each place where the stock is held; and you can choose the IOSS system. If he The stock is outside the EUyou must be VAT registered in each country where your customers are based and they are eligible for the IOSS scheme for goods imported directly to customers in Europe that have a value of less than 150 euros.
For his part to gain access to the British marketThe seller must report VAT in the following cases:
- If that Sales take place via a marketplace and the products are at the point of sale outside the UK:
- If the value of the shipment is less than £135, the marketplace will be responsible for collecting VAT on your behalf.
- If the goods exceed the postage value of £135, you will need to decide who is responsible for reporting VAT; either the dealers or the British customer.
- If it is done via an online shop:
- If your shipment costs less than £135 you will need to be VAT registered from the first sale.
- If the goods exceed the shipping value of £135 as described above, you will need to decide who is responsible for reporting VAT.
- If your products are located in the UK at the time of sale:
- If you are selling through a website, marketplace or both, ownership of Shares in the UK is a taxable benefit at the time of sale and you will need to register for VAT.
- For non-UK based businesses, the seller must charge UK VAT on all sales to UK customers.