The post 2021 changes to EU customs rules: How will logistics be affected? appeared first on Sprint Logistics.
]]>It can take time to navigate the changes. While Sprint Logistics can help you deal with the new requirements as part of our freight management and import/export services, you should take a moment to learn what the changes are so you can continue shipping your products uninterrupted, without delays and disruption to your supply chain.
To help you, we’ve outlined what the changes mean for logistics below.
The Import Control System 2 (ICS2) is a large-scale pre-arrival security programme designed to alert customs officials to possible security threats, implemented across the EU since 15 March 2021. It’s in place to make air freight safer and more efficient and to make customs processes faster and smoother for goods being shipped across borders.
The main impact of ICS2 on logistics is that all paperwork needed when shipping items to the EU will need to be completed in advance. This enables advance screening and approval of shipments before loading and departure.
Consignment data and content information required for import and export must now be entered electronically by the sender and sent to the destination country as Electronic Advance Data (EAD). Customs authorities will also need an Entry Summary Declaration (ENS) to help them with risk assessments prior to the shipment’s arrival in the EU.
In the first phase of ICS2, the changes apply only to courier and postal transport in selected countries, but from March 2023 all cargo consignments transported by air freight will require pre-arrival ENS data. By March 2024, any cargo travelling by air, road and sea will be required to submit ENS data, including logistics providers, and the consignee, if based in the EU.
The EU promises this will keep shipments moving without unnecessary delays while providing a more effective and efficient way of screening for threats. Checking for restrictions and licenses, registering with the relevant authorities and ensuring any necessary paperwork is in place prior to dispatching goods will help you avoid fines, delays and unhappy customers.
After 1 July 2021, every merchant selling, storing or transporting goods through the EU will have to be EU VAT-registered – not just those who are based in the EU. This will apply to your business even if you are using a third party logistics (3PL) service like Sprint Logistics.
Up until July 2021, the low-consignment relief (or minimum threshold for VAT payments) has meant that goods below the value of €22 have not been subject to VAT. However, under the new rules, this relief has been abolished. Therefore, VAT will have to be paid on any consignment of standard goods (products that are not subject to excise duties such as alcohol) imported into the EU and valued at €150 or less.
In addition, while in the past member states have determined their own distance selling thresholds, from July 2021 onwards, an EU-wide threshold of €10,000 will apply to all businesses. Even if your business falls below this threshold, your customers will still be liable to pay VAT to customs upon goods entering the EU.
The Import One-Stop Shop (IOSS) scheme is based on an electronic portal through which online retailers can declare and pay their VAT.
This streamlines and clarifies the process of paying, as all VAT charges are clearly displayed for customers. It also eliminates hidden fees by making sure buyers are only charged once at the point of purchase.
While it’s not compulsory to register with this service, it’s highly recommended, as it can make VAT payment much easier and quicker. The IOSS will be implemented from 1 July 2021, but registrations are open now through the IOSS portals of member states to help you plan ahead.
If your business is selling goods through online marketplaces, the new rules mean that the online platform facilitating your sales is responsible for charging and collecting VAT on your behalf as of 1 July 2021. At Sprint Logistics, we take this into account when creating your tailored, integrated multi-channel retail logistics solution.
All of these changes can seem like a lot to digest, and at Sprint Logistics, we understand that you would rather focus on what’s important – growing your brand. That’s why, if you’re shipping to the EU from within its borders or from outside, we can take the hassle out by taking care of the paperwork for you through our end-to-end logistics, freight management and import/export services.
Our e-commerce delivery service API integrates directly into your retail supply chain, and as soon as an order is placed on your website, our warehouse team will pick & pack your products, taking care of fulfilment and your products crossing borders. Our solutions are customised to the needs of your business, so wherever you’re selling to worldwide, our network of experienced professionals will be able to help you.
If you’d like to know more about how we can help you, get in touch today.
The post 2021 changes to EU customs rules: How will logistics be affected? appeared first on Sprint Logistics.
]]>The post How A Logistics Service Can Help A Fashion Retailer Deal With Seasonal Peaks appeared first on Sprint Logistics.
]]>The 2020 holiday season is set to be busier than ever, and fashion ecommerce businesses face unique challenges at peak periods, including storing a huge range of products, optimising returns handling, efficient processing and, of course, rapid delivery. So how can a logistics service help fashion retailers deal with seasonal peaks?
Forecasting and planning
Effective planning and forecasting is essential to handling seasonal peaks, using data from previous years to assess and prepare for demand. The insights from past seasons thus enables fashion retailers to identify which items will be in demand and prioritise shipments accordingly.
A logistics service can offer automated services and IT systems offer visibility across the supply chain, enabling retailers to identify potential pitfalls and better communicate with other supply chain links to prevent delays.
Logistics operators can also offer flexible site solutions to cope with demand, such as larger warehouse capabilities and forward stocking locations to help large and small volumes of items reach their destinations quickly.
Additional support with packaging and labelling can also assist retailers in creating a seamless logistics process; from hiring additional staff to providing large quantities of packing materials, the right logistics service will ensure everything a fashion retailer needs to deal with seasonal peaks is in place well in advance.
To ease pressure on shipping and last mile delivery, fashion retailers can use incentives such as offering a lower price for slower delivery, encouraging shoppers to buy ahead of the rush with pre-Black Friday deals or extending their delivery returns window.
With a logistics service, fashion retails can better manage seasonal peaks with comprehensive, expert support. From outsourcing the management of transportation networks, utilising trusted, cost-effective delivery partners, to assistance monitoring inventory (and tracking, diverting or reallocating as necessary) and creating a flexible delivery network around demand that prevents bottlenecks.
A reliable fashion logistics provider will ensure you have total control and visibility over your retail business, whilst also taking the pressure off and handling the finer details of fashion logistics to ensure everything runs smoothly.
Sprint Logistics has extensive experience delivering fashion retail logistics solutions for both high street and online retailers. Our tailored fashion and retail supply chain management solutions support your business to grow and meet demand, even in peak periods; our logistics experts offer bespoke solutions from warehousing and packing to stock management and delivery that ensure your operations are cost-effective, time-efficient and get items where they need to be.
To find out more about how our fashion and retail logistics solutions can help support your business over the festive season (and beyond), contact us today.
The post How A Logistics Service Can Help A Fashion Retailer Deal With Seasonal Peaks appeared first on Sprint Logistics.
]]>The post 5 common ecommerce logistics challenges and how to tackle them appeared first on Sprint Logistics.
]]>Outsourcing fulfilment and scaling up your ecommerce business can free up time so you can focus on the brand. Here are some of the key challenges you might come across:
Today’s consumers hold the power. As competition grows between webshops and marketplaces, many companies are selling similar products online. This means that it’s easy for consumers to shop around and pick the best price and delivery time, and they are unlikely to wait around if you’re out of stock on a product, and will instead go to a competitor. Therefore, it’s crucial that you match the best price and shipping time out there, and that your inventory management system is solid so that you never run out of stock on a popular product.
A comprehensive warehouse management system will play a crucial part in meeting demands on fulfilment speed. An efficiently organised warehouse helps speed up inventory management and product retrieval, meaning that you get your product picked, packed and shipped off to your customers as quickly as possible. Localised warehousing will also help you significantly, and the move towards this has been accelerating as companies experience higher demand in order volumes.
Offering real-time tracking is no longer an option – it will put you at a competitive disadvantage if you don’t. Shoppers want to be able to anticipate when their delivery will arrive, and the more accurate the detail you can give, the happier the customers, ensuring they return.
While this visibility needs to be full and in real-time, the importance of the last mile has to be stressed. Sometimes people need to fit deliveries around other activities and plan when they need to be home. With the rise of delivery apps, consumers are also used to being able to see exactly where their driver is and what time they will arrive, even to the minute. The smaller the window you can give, the better.
As the proportion of market share held by ecommerce grows, m-commerce is growing at an even greater speed. This trend is projected to continue, if not accelerate. Technological advances mean it’s easy for people to shop on their phones wherever they are, and it’s especially popular with younger generations, who hold increasing spending power.
This is why your website needs to be mobile-optimised. There are, however, many other things to consider when choosing the right platform for your business, including shopping cart solutions, inventory management software and analytics systems, to ensure optimal growth and efficiency. Navigating these demands can seem like a headache without expert guidance, especially if you’re transitioning to new systems.
As ecommerce continues to grow in popularity, it has become a more attractive playing field to fraudsters and identity thieves. Criminals target both sellers and buyers, and while successful hacking incidents are relatively rare, they can gain media interest when they happen. This can be detrimental to a company’s reputation as it dents consumer confidence. Customers’ details need to remain safe, and reliable and up-to-date security systems are necessary to ensure this.
End-to-end third party logistics allows you the flexibility to focus on growing your business while you outsource fulfilment. At Sprint Logistics, we offer comprehensive retail logistics services from storage, pick and pack and shipping to an easy returns process, while giving you total control and visibility over your logistics.
Our ecommerce delivery services integrate seamlessly into your supply chain, while we manage everything from freight planning, to serial coding, to single and onward bulk shipping. You’ll have access to our international network of warehouses, forward stocking locations and delivery services, as well as our expertise.
Contact us today to find out more about the ecommerce logistics solutions we offer.
The post 5 common ecommerce logistics challenges and how to tackle them appeared first on Sprint Logistics.
]]>The post How to scale your e-commerce business successfully appeared first on Sprint Logistics.
]]>Whatever you’re selling, knowing what your target audience wants and how consumers reach your business is key. Different platforms, such as social media, PPC advertising and marketplaces, attract different customers; to compel them to click through to your ecommerce site, you need to know your customers, understand their journey and adapt your sales and marketing strategies accordingly.
If you’re ready to scale up your e-commerce business, people are clearly buying and enjoying your products. However, you can’t rely on word-of-mouth advertising forever. An effective marketing strategy will sustain the momentum you’ve worked hard to develop, so research how to reach your existing customers to retain them, whilst also grabbing new ones. A strong SEO strategy, social media marketing and other incentives such as vouchers and discounts via direct mail marketing are all great ways to do this.
For growing numbers of customers, the quality of your customer service needs to scale up, too. Problems are unavoidable, whether it’s external events slowing up your delivery or employee sickness leaving you short-staffed; what’s essential is being able to resolve customer complaints effectively and efficiently. Taking care of your customers and ensuring every dealing they have with you is positive should be your number one priority.
As your ecommerce business grows, you’ll need to save time on administrative and manual tasks to ensure you can focus on more important areas of your business. Using a fulfilment centre, relying on experts to pick and pack for you and offering delivery in one seamless service are great ways to free up your time.
An end-to-end logistics service enables you to save money on shipping costs, as fulfilment and distribution are taken care of. The right logistics service can pack boxes, print labels and get parcels to where they need to be on time, so you can concentrate on growth without worrying about warehousing, storage and stock levels as it’s all in hand.
Sprint Logistics offers worldwide delivery solutions as well as storage, fulfilment, distribution and more. Sprint uses the latest technology to keep you abreast of stock levels wherever you are, so you can reorder items as needed and never over-order on slow-moving stock.
Sprint Logistics’ ecommerce logistics services utilises our international network of warehouses, forward stocking locations and delivery services to ensure you and your customers enjoy the very best service.
Whether you need support with online stock control or a delivery and distributions solution that supports your ecommerce business growth, Sprint Logistics can help you. Contact us today to find out how.
The post How to scale your e-commerce business successfully appeared first on Sprint Logistics.
]]>The post The benefits of digital stock control appeared first on Sprint Logistics.
]]>The time that you’re investing in these manual tasks is valuable time – that could be better spent growing your business. It also means an increase in the risk of human error, leading to poor customer service. That’s why more and more online businesses are discovering the benefits of using technology to manage stock.
As supply and demand fluctuate throughout the year, your stock management process needs to be agile to accommodate seasonal changes and prevent over- or under-ordering. Stock shortages can slow up your business and make you lose money through slow-moving stock or lost sales.
Automating your stock control processes using digital stock control methods or software makes it easy to plan around forecasted sales, using historic data to predict demand and quickly updating stock levels to ensure reordering is timely, whilst also preventing surplus stock.
When selling across multiple e-commerce channels, overselling products is an easy mistake for online sellers to make. Without full control of your stock levels, your business will struggle to grow and some marketplaces, such as Amazon and eBay, now penalize e-retailers who oversell.
A digital stock control system synchronises your orders and inventories across online marketplaces and e-commerce platforms in real time, ensuring your stock levels are always up to date and eliminating any risk of overselling.
From inventory costs associated with human error to stock levels not matching the inventory ordered, inaccurate stock control processes can be costly as well as time-consuming, and lead to mistakes which incur further costs.
Utilising online stock control software guarantees that even busy warehouses have accurate stocktakes by quickly identifying if the correct stock has been delivered. Plus, digital stock control systems frees up staff time with barcode scanning and inventory management software; instead of manually checking and listing products, employees can focus their energy elsewhere.
Sprint Logistics personalised ordering and online stock control system enables you to order your products and send them to any location quickly and easily.
AIMS, our international logistics management platforms, gives you a complete overview of your stock control, digitally. With clear item codes, product images to easily see items and pre-alerts for stock replenishment, our online stock control services make monitoring stock levels simple.
Whether you’re monitoring expiry dates for items with a short shelf-life or looking to free up staff time from admin tasks, Sprint Logistics digital solutions take care of every step of the logistics process, so you can focus on growing your business.
Contact us today to see how our online stock control solutions and logistics services can benefit your business.
The post The benefits of digital stock control appeared first on Sprint Logistics.
]]>The post Working with Channel Partners to Drive Business appeared first on Sprint Logistics.
]]>We’ll look at the different types of channel partnerships that exist in the world of e-commerce and how working with them can drive your business forward.
Broadly speaking, channel partners fall under three main categories and it’s important to choose the right one for your specific business needs:
Resellers specialise in selling products developed by other companies, purchasing them at a discounted rate and then selling them to customers for a higher cost, while keeping the difference.
Value-Added Resellers add features or services to your products, which they then sell to customers in a bundled offering. This practice occurs commonly in the electronics or IT industry.
Affiliates use their own websites to market your products and services. These affiliates are given a percentage of revenue from each sale they generate. A good example of an affiliate is Groupon, a lifestyle platform that exposes business-to-business partners to a huge audience base, promising better discoverability, increased profit and repeat custom.
Within the three categories of channel partners above, there are more specific partners, such as consultants, distributors, co-retailers, systems integrators and vendors.
Channel partnerships have seen their role grow significantly in recent years. Today’s channel partners provide great flexibility, high responsiveness and excellent business strategy so you can achieve good levels of success.
There are many key benefits that the modern channel partner offers:
This is the most obvious advantage, as your partner(s) invest time, energy and capital into pushing your products and services for you. Furthermore, you could view it as a way of outsourcing sales and avoiding the costs involved in developing your own internal staff.
Channel partners not only boost your sales but increase brand awareness too while strengthening your market penetration. Ultimately, spreading your brand around channel partners gets your business out there in front of consumers.
Your partners will most likely have spent a long time building their online marketing knowledge in their respective industries. They will be able to provide valuable feedback on how you can tailor your solutions to the needs and wants of the market.
Global channel partners provide a vital gateway to international audiences on the lookout for new brands to experience.
Working with channel partners can take your brand to the next level but it’s essential, like any other partnership, to put the work into nurturing a productive, long-term business relationship.
Make sure you are open with your information, strategies and key updates. As Accenture found in a recent study: ‘Companies that help their channel partners share customer data and generate leads are 63% more likely to exceed their revenue goals through channel partner networks.’ Always remember that a channel partner works with your brand, not for it.
If you want an ideal partner for all your e-commerce logistics, mailing, distribution, warehousing and fulfilment needs, then contact Sprint Logistics. We aim to be the best provider of smart supply chain solutions to clients locally, nationally and internationally – taking care of the hard work for you so you can focus on growing your business.
The post Working with Channel Partners to Drive Business appeared first on Sprint Logistics.
]]>The post The Future of Ecommerce Delivery appeared first on Sprint Logistics.
]]>The ecommerce industry is going from strength to strength and is becoming increasingly competitive, resulting in new ideas, enhanced service and improved processes overall. To stay ahead, business leaders are pioneering new ways of improving ecommerce delivery, which strengthens their brand and helps protect the wider industry.
We look at what the future holds for ecommerce delivery and how you can be a part of it.
Environmental awareness is the hot topic that should be on the agenda of every online business. Consumers increasingly want brands to lead with their values and to see evidence of positive activity. This means implementing green manufacturing practices, using eco-friendly supply chains and enforcing reduced-waste packaging.
For businesses, energy-efficient manufacturing is just the start. In the future, customer satisfaction is likely to hinge not just on price and quality, but how brands manufacture their goods. This also includes ethical sourcing of sustainable commodities and treating workers well.
Online retailers are increasingly turning to sophisticated technology to cut waste. However, there are ways to earn your green credentials in the public eye without significant investment at the outset. Zero-waste packaging, where all materials are used, reused, or recycled, is driven by high consumer demand and is fairly straightforward to adopt.
Look into minimising your packaging, reducing package sizes, redesigning shipping cases, using sustainable materials – and keep up with the trend while protecting the planet.
Convenience is a vital aspect of what makes ecommerce so popular, and we’re now witnessing more businesses offering ultra-fast, premium delivery. It’s been shown that customers are willing to pay more for more efficient service, although this doesn’t mean that rapid delivery can be economically viable for SMEs.
The cost of fulfilment, processing, despatching and delivering extremely quickly is very high, and it’s difficult for companies to remain profitable while offering a service such as same-day delivery. Perhaps this is only suited to very specific businesses and that companies should focus on refining a same-day click and collect service instead.
Further into the future, it’s anticipated that drones and robots could well be the main agents of ecommerce delivery. In recent years, there has been steady growth in the number of parcels delivered by new technology such as self-driven robots, monitored by humans in control rooms. This links back to the need for more environmental awareness. As SearchNode, the organisation behind 22 Ecommerce Trends for 2020, states: ‘More ecommerce companies could accept their selling products for recycling or at least educate how purchased products could be recycled. Drones delivery should cut emissions if they replace trucks and cars.’
Logistics and order fulfilment are the bedrock of ecommerce, and these need to be as fast, reliable and streamlined as possible to satisfy customers of the future. As the global ecommerce industry continues its expansion, there will be a greater strain on logistics and supply chain management.
That’s why we recommend outsourcing your logistics to established experts, who will provide you with the solutions you need and take care of problems, so you can focus on growing your business.
Sprint Logistics makes everything easy for you. We take care of your products and offer scalable retail logistics services to give you the flexibility you need. From our pick-and-pack warehouse to our ecommerce delivery and courier services, our systems allow you to plan, purchase, pause and cancel orders any time, giving you total control over your logistics.
Contact us today to discuss your logistics requirements and we will provide a bespoke service.
The post The Future of Ecommerce Delivery appeared first on Sprint Logistics.
]]>The post Preparing to Deliver Globally appeared first on Sprint Logistics.
]]>For ambitious online retailers, the common goal is to expand globally, introducing their brands to different countries and tapping into new customer bases. International expansion is exciting, but businesses need to prepare in the right way and gather the appropriate information to ensure the best chance of success.
The first question retailers tend to ask themselves is how they are going to manage shipping and fulfil orders to different countries. International logistics solutions experts make this straightforward and easy for you, freeing you up to learn about the new market you’re planning on selling to.
When exploring new territories, it’s vital to grasp the specific rules and regulations for selling online in potential countries. This means getting to grips with the customs, duties and taxes of these places, which can be time-consuming to unravel.
Many e-tailers around the world dream of cracking the giant US ecommerce market, for example, but it’s important to note that the US is a federal system, not a single national market. Retailers must treat each state as a separate entity with its own procedures. The US tax system is complicated and taxes can be imposed by both the federal government and individual states.
China is another giant ecommerce market, and regulations governing the import of goods into this country are constantly changing; furthermore, many of its standards are not aligned with established international ones. It’s easy for companies to get ‘lost’ among Chinese rules, so take great care over certification requirements that apply to your business.
Selling to Europe is often regarded as a much easier challenge, but there are factors to be wary of. For example, the European Union has standard rules on VAT, but they may be applied differently in each country. Additionally, each member state has its own reporting threshold called Instrastat declarations, which are mandatory statistical returns. Failure to comply will result in penalties and, in worst-case scenarios, your seller account being shut down.
When it comes to meeting the specific rules and regulations of new destinations, our advice is to check the relevant government portals and contact a global expert in international delivery.
Understanding your new customer base is absolutely vital and will influence the way you conduct your business. Retailers wanting to sell to the US, for example, will need to have an excellent returns process, since most Americans consider difficult returns to be the major obstacle in online shopping. Six of the top ten fastest-growing ecommerce countries hail from the Asia-Pacific region, led by India and the Philippines, but this doesn’t mean these customers are easily reached and satisfied. Santander reported that: ‘Companies wishing to reach as many [Indian] consumers as possible must make significant efforts in terms of market penetration’ while Forbes stated that ‘trust is still a huge barrier’ when it comes to selling to Filipino consumers. The upshot of this is that, if you can secure their trust with marketing and technology, then you will boost your chances of success.
Meanwhile, Latin America boasts the top-growing regional ecommerce market, with Mexico displaying huge growth of 35%. Overseas shopping forms a significant part of this: according to research, 67% of consumers are shopping from international sites. The most popular online categories in this country are electronics, travel goods and household items. Are your products suited to this blossoming market and could you gain a foothold here?
When it comes to deciding where in the world you want to expand to next, we recommend learning all about the people first and foremost as they will be central to your success.
Sprint Logistics is a premium logistics and fulfilment company for worldwide customers looking for bespoke solutions. We understand the importance of straightforward, hassle-free global expansion, which is why we have the experts, facilities and technology to cover all your needs.
If you have any questions about preparing to sell internationally, please get in touch.
The post Preparing to Deliver Globally appeared first on Sprint Logistics.
]]>The post How to Minimise Returns While Improving Sales appeared first on Sprint Logistics.
]]>However, with the unstoppable growth in online shopping comes an aggressive spike in customer returns. Whether it’s because the product didn’t match the description, the customer received the wrong item, the goods were damaged, or the purchase is simply unwanted, returns seriously cut into retailer profits. The best way to minimise costly returns is prevention.
Start with your returns policy, but don’t be tempted to create an overly strict, unforgiving set of rules that might cut down on the volume of returns but drive customers away. On the other hand, a very liberal ecommerce policy may give your customers peace of mind, but you will end up having to deal with a severe increase in returns.
Be sensible and craft a smart returns policy based on industry standards and actual return rates. Most often, customers just need a clear, visible and fair returns policy. However, make sure your returns policy is in perfect alignment with the law: a study by MoneySavingExpert.com found that the policies of 13 major stores were giving shoppers wrong (and, therefore, illegal) information about their return rights.
The next thing to look at would be the visuals on your webshop. For commercial success, there is a need to make products appear as attractive as possible, but make sure this is done in a realistic way. Given that a large proportion of product returns are down to inaccurate depictions, it’s in retailers’ best interests to include high-quality visuals to manage consumer expectations and avoid unnecessary returns. Consider 360-degree product views and, if it suits your brand, Instagram marketing – these will improve sales.
Another way to manage customer expectations is to incorporate customer reviews on your site. These can motivate buyers and empower them to make better, well-informed decisions, which in turn lead to greater customer satisfaction. The reviews can also help shoppers avoid a purchase they would ultimately be unhappy with due to a characteristic not covered by the product description. Think about adding extra functionality to customer reviews such as pictures and video; a recent study found that 86% of clothes shoppers think that photos of other customers wearing the product were useful in judging how it might look on themselves.
So far, the advice has been related to the pre-purchase phase. Returns can also be reduced by improving the aftersales process. Excellent customer service helps avoid unnecessary returns by resolving a customer’s problem with dedicated support. The customer may discover that there is no need to return the product after all; they may be mistaken in their belief that it’s defective, or they may be happy to keep the goods along with a complementary gift (which would cost less than an exchange for the retailer). Customer service is an ideal way to understand what your customer needs and to influence them to work with you.
One of the major reasons why shoppers return products is because they were sent the wrong item, while goods being damaged in transit is also a common complaint. Many ecommerce companies find that, as they grow, their fulfilment operation proves to be inadequate under increasing pressure. Picking and packing mistakes and shipment errors become more frequent, as do unhappy customers.
You can avoid this by outsourcing your fulfilment to a specialist provider. Doing so will save you time and money: operating in their own area of expertise, the partner organisation will be able to do things much more efficiently and to a higher standard, freeing you up to focus on business growth and take advantage of increased customer sales.
Sprint Logistics is a global logistics company providing worldwide fulfilment services, distribution, storage, mass mailing and supply chain management. We understand that each business has different needs, which is why we offer a consultative approach; listening, analysing and giving bespoke ecommerce solutions.
Contact Sprint Logistics to discuss your fulfilment needs and see how we can help you achieve your global goals.
The post How to Minimise Returns While Improving Sales appeared first on Sprint Logistics.
]]>The post Top Tips on Cross-Border VAT Compliance appeared first on Sprint Logistics.
]]>Wherever you’re sending your goods to, you need to start a relationship with the body that ensures tax compliance for shipments crossing into their border, whether that’s HMRC in the UK, the General Administration of Customs of the People’s Republic of China, or the Federal Customs Service in Russia.
Value-added tax (VAT), or goods and services tax (GST) as it is known in some countries, is collected by the end retailer and accounts for around a fifth of worldwide tax revenue. If you are based within the EU, then you would need to find out whether you’re liable for this tax by clarifying your VAT position. Ask yourself: are you selling to businesses or customers? Are you selling goods or services? Are the customers you’re selling to inside or outside the EU?
VAT all depends on annual sales thresholds. Currently, if your sales are below a threshold for the year, you pay VAT in your own country. If your year sales surpass a threshold, you pay VAT in the other country. Most thresholds in EU countries are €35K although some are €100K (and, of course, some member states use their own currency).
In other words, as soon as your total sales in a certain country have hit the distance-selling threshold, then your VAT liability switches over to that country for those sales and you must register for VAT in that country. The distance-selling thresholds do not apply to B2B sales, excisable goods (tobacco, alcohol, petrol) and digital products.
You need to be aware of which of the country’s VAT rates to apply. Different goods and services will have different VAT rates – some products may be completely exempt.
It’s essential to get to grips with EU VAT rules on distance selling, especially as they are set to change from January 2021. Tax Journal provides this summary:
‘The revised regime [will do] away with the existing distance selling rules, i.e. the €100,000/€35,000 limits. Taxation [will take] place in the member state of destination, and at the appropriate rate in that member state. This means that the supplier will no longer be able be able to use his domestic VAT registration to account for VAT on sales.’
Also, once you are registered in your resident country and any other country for VAT purposes, you will be required to submit VAT declarations. Please note that reporting regulations change frequently too so it’s important to keep up to date.
For exports outside the EU, you can generally zero-rate supplies provided you follow strict rules and provide evidence of export to show that the goods left the EU. You must, however, get information on the local tax rules and regulations of the country you are importing into as you may have additional tax obligations there, including import charges.
We understand it can be difficult and confusing to deal with cross-border VAT for the first time in a new country. That’s why Sprint Logistics can help you stay tax-compliant and give you the accurate advice you need to grow your business across borders. We have in-depth knowledge and experience of handling VAT at home and abroad, so you can relax and let us take care of the intricate details for you.
To find out how Sprint Logistics can help you with VAT compliance or any supply chain and logistics queries you may have, simply contact us today.
The post Top Tips on Cross-Border VAT Compliance appeared first on Sprint Logistics.
]]>