How are retailers set up to ship cross-border? In a survey conducted in April 2022, we aimed to find out how 300 retailers operate cross border, and the associated costs to the customer. Is it worth it, and is this an area retailers are missing out on? Almost 50% of our retailers said they don’t operate cross-border, so this could be an untapped market. To read the full findings of our survey, check out our report here.
It is not all explicitly about logistics though; there are the technical and legal requirements that need to be satisfied. Luca Clivati, Senior Consulting Manager at Sovos says that UK retailers ‘should analyse the entry point of their goods into the EU or non-EU countries and consider logistics aspects (incoterms, where clients are located and how to deliver the products to them) and administrative obligations (the need to register for VAT/GST, payment of import VAT, submission of local returns).
Several EU countries (e.g. France, the Netherlands, Belgium) offer solutions to avoid paying import VAT, reducing costs for UK retailers. For local sales, the UK retailer should verify if they need to account for local VAT or if a simplification exists to ease their VAT compliance.’
Source Imrg
