Vatglobal’s 5 Tips for Maximising Profit when Selling in Europe

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Vatglobal’s 5 Tips for Maximising Profit when Selling in Europe

August 14
02:50 2021
Importing into Europe the smart way. Open new markets with strategic distribution strategies that lower import VAT costs and maximise reclaim opportunities.

The European market is a sophisticated landscape. There are 750 million potential clients spread across the continent, with the majority of trade and tax governed by the European Union.

Penetrating this lucrative customer base can transform a business, creating new revenue lines in an economy where customers are known for being open to trying new brands.

However, successfully entering the European market means stepping out beyond core business. No matter how good a product is, success is often defined by the quality of the distribution.

Here are 5 tips to optimise distribution and maximise profits:

1. Avoid or minimise import taxes

The first step is getting the products into Europe. That sounds obvious, but it actually raises several technical questions. The right import partner will help manage customs procedures and reduce costs. It also matters where the product is imported into. By choosing the initial point of entry into Europe strategically, a seller will, in many cases, be able to minimise import taxes. They may even be able to avoid paying import VAT altogether.

2. Select distribution locations strategically

Europe’s excellent distribution network means that the majority of the market is accessible by road. In fact, more than 75% of all European trade is fulfilled by road freight transport. Storing goods strategically in fulfilment centres can therefore improve delivery times and open up the entire market. That’s where Vatglobal’s Fast Lane to Europe can help. Using Fast Lane, businesses can ship their goods to Europe via the Netherlands, renowned for its efficient customs procedures, and immediately transport them to nearby major European markets.

3. Avoid penalties for tax compliance oversights

Selling in foreign countries is a powerful way to expand the market for products, but it also creates complex tax obligations. Failing to meet these obligations will result in penalties, or worse: a business could be barred from operating in a market. For this reason, many businesses rely on a tax specialist that analyses their whole supply chain and ensures full compliance at every stage.

4. Maximise tax recovery

Unlike US sales tax, European VAT is incurred throughout the value chain. Fortunately, there are numerous opportunities to reclaim that VAT. For instance, import VAT can be fully recovered, if the importer follows the correct procedures. It is also possible to claim back VAT on business expenditure.

5. Take advantage of trade simplifications

There are various ways to avoid VAT compliance obligations, remove VAT and other tax charges on transactions. Most of these simplifications, including triangulation and the reverse charge mechanism, can be used as weapons to maximise profitability and optimise logistics.

Putting it all together

As global VAT specialists, Vatglobal is constantly analysing international VAT developments. Vatglobal’s website offers up-to-date resources to help a customer understand VAT in Europe and around the world.

Vatglobal helps customers enter new markets cost-effectively – maximising profits and avoiding the risk of compliance issues, i.e. penalties. Vatglobal’s specialist knowledge, experience and on-the-ground network gives clients easy access onto the fast lane to European sales.

Media Contact
Company Name: Vatglobal
Contact Person: Jonathan Matthews
Email: Send Email
Phone: +44 203 961 7500
Country: United Kingdom

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