The European Union is the world’s largest economy even if it has a projected slow growth. It is occupying a prime position in the global market with its open trade regime which means it is not only a huge player but also a good space to do business with.
EU’s marketplace and Brexit
Thanks to EU, Europe has achieved strength in the international stage by acting together with one voice and as a single market, instead with 28 trade strategies. The freedom of movement, easy trade among member countries, less paperwork and the euro all contribute to beneficial and easy business among EU member countries.
Europe remains an attractive market even with a looming United Kingdom leaving EU aka Brexit. Until Brexit is completed, economic policies in EU remain the same. Some fear that trading advantages would disappear after Brexit, while others believe negative changes would not happen if they trust assurances of those who have political power. Before Brexit happens though, EU provides a marketplace that is just too good to ignore.
International market and investors
Modern communications and transport also make it easy to produce, as well as buy and sell goods in the global market. To engage in international business and trade, people deliver products and services across multiple countries with specific contracts. Investors are looking for dismantling of investment barriers and a protection of their investment in order to survive in a predictable, sound and stable environment.
Doing business in Europe
To do business in Europe, there are requirements one has to comply such as the following:
• The courier will ask business owners to fill up the proforma invoice. Customers in the UK who have to fill up the form should be charged VAT.
• The proforma invoice or license if there is, should be attached to the consignment.
• Check if exporting restricted goods from the UK needs to follow special rules or a license.
• Check Europe’s import laws for certain products.
• Proforma invoices, other records and official paperworks for six years must be kept after the export.
• Huge exporters should register for VAT in the country they are selling to.
• Moving goods anywhere within EU that is more than £250,000 in the recent calendar year needs an Intrastat declaration. This is not needed if the investor is not registered for VAT in the UK.
Duties and VAT
Among EU’s biggest benefits is the free movement of products and services. Goods bought or sold within the member states of EU are duty free. VAT is also made simple. Generally, customers pay for VAT. Small business owners usually include information on international sales and purchases then submit them to the regular VAT return.
Euros and prices
Most members of EU use euro. It is best to price the goods in euros since it gives clients clear price picture. They do not need to make currency exchanges. The option to open a euro account with the bank can also be a wise move.