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A marketer’s guide to exporting
Promoting your
business abroad
3	Why export										
4	 Getting started	
5	Did you know?								
7	 Marketing your business internationally				
10	Legislation										
12	How Sage can help								
14	 Other resources to help	
Contents
A marketer’s guide to exporting
2
Does your business export goods or services? If the answer
is not yet, then now could be a great time to start.
Exporting offers a number of benefits for businesses, including:
•	 Increased sales and profits
•	 A wider customer base with excellent spending power
•	 A way to increase your market share
•	 Lower cost of production if you achieve economies of scale
•	 Less waste, as you can sell surplus stock overseas
•	A way to minimise the impact of changes in the local market, like economic downturns or a new
competitor. According to figures from the UKTI, UK companies who do business overseas are more
than 11% more likely to survive.
You don’t have to be a big business to export. But before you jump straight in, it pays to do some research and
prepare for the differences that come with trading overseas. Once you understand these, you’ll be well placed
to take advantage of the benefits that exporting can bring to your business.
Why export
3
A marketer’s guide to exporting
Once you’ve recognised the opportunity for your business,
there are some important steps to take before you can begin
selling. The key thing is to ensure you’ve carried out the right
research, so you know what’s involved.
Market research
It’s essential that you know which markets would be right for your products and how to reach these
customers. There are many different options available, so it can be daunting to know where to start. The first
step is to find out about each of the possible countries that you could export to and whether a market exists
for your product or service. Here are a few ways to do this:
•	Look at your competitors: Where are they exporting? Are they doing so successfully? Check out their
website, their press releases and your usual sources of competitor information to understand more about
their approach.
•	 Look at which markets are similar to the UK: Think about the types of products they use and whether
they are likely to be interested in what you sell. Speak to the UKTI or contact the commercial officers at
the British embassy in your target market, who have up-to-date market information.
•	Consider where your resources are: Exporting can be a very steep learning curve, so having local people
on the ground who can offer advice and support can make things a lot easier.
The best place to go for advice is UK Trade and Investment (UKTI) which offers a range of support for small
businesses, from individual advice from a local trade expert to help with market research.
They also offer assistance with visits to your target market, including meetings with other British companies
already exporting and networking opportunities. The cost is just £200 + VAT - all flights, accommodation and
other costs are covered by UKTI.
Click here to find out more.
Understanding cultural differences
All countries have different cultures and, for those exporting for the first time, it can be easy to be caught out.
Even if you speak the same language, you may find that their approach to doing business is very different.
Getting started
A marketer’s guide to exporting
4
•	 In China, business cards are exchanged before the meeting and should be handled with great respect.
•	 In Brazil, personal space is less valued, so you may find people stand very close to you.
•	 In Japan, money is not openly displayed and is normally placed in an envelope.
Modifying your products for the local market
The most important aspects of product positioning are quality, competitive pricing and availability. However,
while you may find that the goods or services you provide in the UK are suitable for international markets,
there are a couple of factors to bear in mind:
•	Naming: We’ve all seen those photos from people’s holidays of products with names that we find amusing.
Make sure you check whether your products have an amusing or unintentional meaning in your target
market and if so, consider whether you would like to rebrand - and what the costs would be to do this.
•	Packaging: While you may think that your existing packaging will work overseas, be aware that legislation
varies in different countries. For example, in Canada, the product details must be listed in both English
and French. Check with the UKTI about the regulations for each country to ensure you have met
the requirements.
•	Product specification: Depending on your product, this may be an area where cultural differences make
a big difference to what will sell. For example, you may find that colours that sell in the UK are not popular
overseas, or clothing may need to fit differently, or you need to change the power supply. This is where
knowing your local market is essential. Look at what competitors are selling and ask the UKTI for advice
on how to understand and adapt your products for an international market
Ensuring you have capacity
One important aspect of expanding into export is to ensure you can scale to meet the demand. This means
you’ll need to plan for expansion in everything from raw materials and machinery to staffing. Don’t forget that
this can also have an impact on your HR, finance and marketing activity too, so you need to make sure you
have the resources and finances to meet the demand.
UKTI offers a Passport to Export service, which includes support to help businesses assess the impact and
whether they will be able to meet these demands.
Click here to find out more
Did you know?
A marketer’s guide to exporting
5
Understanding distribution options
Knowing how to get your products out to your customers is an essential part of doing business. For some
companies, it may simply be a case of advertising online and then shipping through a standard distribution
network, like DHL or UPS.
For other businesses, products are significantly larger and may need local support for installation and
after-sales service. If you fall into this category, then you will need to consider the options.
Firstly, how will you achieve the sale? Will you have local sales teams in place and if so, do you need to set up
local offices or stores? Before you invest in this, think about whether you could instead use a local partner
who could provide support and have an understanding of the local culture too. This can help minimise the
risks. Export agents or overseas distributors could be an option.
If you’re still responsible for the shipping, freight forwarders can remove the hassle by overseeing the
distribution, packing, documentation and customs clearance on your behalf. The British International Freight
Association (BIFA) can help you find a company who can do this for you.
Click here to find out more
If you take care of the distribution yourself, you’ll need stay up to date with the safety and security
requirements that apply. You’ll also need to stay compliant with legislation - more about that is included
later in the guide.
Did you know?
A marketer’s guide to exporting
6
It’s essential that you get the word out, so your prospective
customers know about you and your products. You will
already know which marketing channels are successful for
you in the UK so you may want to use the same types to
reach your international audience. However, there are some
specific things you’ll need to address.
Adapting your website
Your website is your shop window for your goods and services. If you already have a UK website, there are
several things you’ll need to consider in order to get ranked well on search engines overseas.
The first one is your domain. If you have a .co.uk website address, it could be worth your while getting
the equivalent for each company that you’re planning export to (so .fr for France or .de for Germany). You
can then use these domains to adapt your website to the local market. You should translate the content
(including any image names and your keywords). Do invest in using a proper translation service rather
than just running the content through Google Translate, as the quality of the content is essential. A good
translator will also be able to point out any cultural differences that should be addressed. To find one, check
out the Institute of Translation and Interpreting or The Chartered Institute of Linguists.
If you sell online, it’s also essential that your website can handle multiple currencies and overseas shipping.
Speak to your website developer about adding this functionality and make sure that it’s easy for you to
update the costs when you need to.
Finally, you should also be prepared for handling overseas returns. Have a clear returns policy and explain
how this applies for international sales. Consider the costs of shipping and who will need to pay these. You
also need to be up to date with the appropriate legislation in each country. UKTI can offer advice.
Using other trading sites
For many small businesses, one of the easiest ways to reach an international market is to trade through
online marketplaces like Amazon, eBay and Etsy. In fact, a recent report showed that 81% of small businesses
on eBay export to five or more countries.
These businesses make it easy to take the first step into exporting by keeping costs low and allowing
companies to test the market and gauge interest. But do be aware that the fees and taxes may be different
if you’re trading internationally, so do take those costs into account.
For a full list of available marketplace websites, click here.
The UKTI also has its own store where you can sell your goods or services.
Marketing your business
internationally
A marketer’s guide to exporting
7
Advertising
As with the other aspects of exporting, advertising is affected by cultural and legal differences. You need to
understand both in order to promote your product effectively. Make sure that you have considered your text,
colours, photography and style of advertising to ensure it fits with your local market.
Be sure to check the local legislation covering how and what can be advertised. This will vary by country.
You can find a list of advertising standards for different countries on this website.
UKTI can also provide assistance with your advertising and marketing to ensure that it has the impact you
want. Their Export Communications Review (ECR) can help you develop an international communications
strategy.
Click here to find out more
Trade shows
Attending trade shows is an excellent way of reaching out to your target audience and getting valuable
feedback about your products and services. There are a huge number of trade shows that take place
throughout the world and it can be hard to know how to find the right one.
The first step is to know what’s on. There’s a list available online which includes the top shows, broken down
by business sector and covering 115 countries. Once you have selected a few that fit your business, spend
some time researching them and seeing if they are a good fit.
If you need help with the cost of attending, UKTI runs a Tradeshow Access Programme (TAP). This provides
funding for small businesses to attend trade shows overseas, with grants of £1,000 to £1,800 to attend six
trade shows overseas.
Click here to find out more
Marketing your business
internationally
A marketer’s guide to exporting
8
Social media
You can reach out to your new audience through social media too. In general, your approach should be the
same as it is for the UK, but do bear in mind some differences.
The first difference is that different channels are more popular in different countries, so you may need to sign
up for new social media platforms, depending on where you export.
Here are the most popular platforms for some of the top export countries:
Choose the right channels for your audience - research who uses them and how. Bear in mind that in China,
some sites such as Facebook and Twitter are blocked, so you’ll definitely need to use their local channels.
The next thing to bear in mind is language. As with your other marketing material, you’re likely to get a better
response if you post in the local language. As social media is more informal and relaxed, you might not need
to spend as much on translation. Some businesses use students from the country to translate their posts, or
you can use sites like PeoplePerHour or UpWork to find translators. Just be sure you have a proper contract
in place and trust the person who is translating or posting for you. It’s much harder to check the message
when you don’t speak the language.
Finally, as with all social media, make sure you have a plan in place and monitor how well your strategy is
working. Remember that, due to cultural differences, you might need to adapt your approach to suit each
country. Social media is a great place to try out new messages or new ways of communicating, as the costs
are low. Don’t be afraid to experiment.
Marketing your business
internationally
Germany Netherlands France China
Facebook Facebook Facebook Qzone
Instagram YouTube YouTube QQ
YouTube LinkedIn Viadeo Weibo
A marketer’s guide to exporting
9
In a survey by UKTI, companies said that legislation was the
biggest issue affecting their ability to export, with 43% saying
it was a barrier. Here’s a quick rundown of some of the key
things you need to know.
VAT rules
The rules vary depending on whether the destination is inside or outside the EU.
Within the EU
You’ll need to:
•	 Record all goods sold on your VAT return
•	 Fill in an EC Sales List
•	 Fill in an Instrastat Declaration if your total sales are worth more than £250,000
•	 The following rules apply when you’re selling goods:
If you’re selling services, you need to:
•	 charge VAT at UK rates to non-business customers
•	 not charge VAT for business customers who will be responsible for paying VAT in their country
The rules vary for certain services, such as transport, land and property services and electronic services.
You can find out more on the Government’s website.
Legislation
If your customer is VAT registered in their
country
If you customer isn’t VAT registered
You don’t pay any VAT, as these goods are
zero-rated
You will normally have to pay UK VAT
The customer will pay VAT at their country’s rate Exceptions apply if the goods are over the
amount called the “distance selling threshold”.
In this case, you must register for VAT in each
country and charge the local rate of VAT.
Click here to find out more
Make sure you get your customer’s VAT
registration number and keep all paperwork to
show when the goods were sent.
A marketer’s guide to exporting
10
Outside the EU
Most goods can be zero-rated but you’ll need to:
•	 get evidence that the goods have left the EU
•	 keep a record of the export in your VAT account
•	 If your customer collects the goods, you’ll need to keep more detailed records.
For services sold to customers outside the EU, there is no VAT charge.
Duty and customs
If you’re sending goods or services within the EU, then you don’t need to pay duty and there are no customs
checks. Outside the EU, you will need to submit an export declaration.
You may also need an export licence, for example for agricultural goods, machine tools, electrical equipment
and some antiques. The Export Control Organisation can provide more information.
Once the goods arrive at their destination you may also need to pay custom duties and taxes. This depends
on the legislation in each country. You might be able to claim “duty relief” for some exports and some
countries have trade agreements in place to lower or eliminate duty charges.
In order to pay the right tax and comply with legislation, you’ll need to have a commodity code for the goods
you’re exporting. These can be found using the online Trade Tariff tool on the Government’s website.
Export declarations
If you’re exporting outside the EU, you will also need to submit an electronic export declaration. You can
do this by registering for an Economic Operator Registration Identification number (EORI), registering for
the Customs Handling of Import and Export Freight system (CHIEF) or submitting your export declaration
through the National Export System (NES) which is part of CHIEF.
If you’re using a freight forwarder, they may handle this for you.
For more information
You can find out more about the legislation for individual markets here.
UKTI can also provide advice.
Legislation
A marketer’s guide to exporting
11
When you’re trading overseas, it’s important that your
software makes everything as easy as possible. You’ll need to
be able to deal with exchange rates, different currencies and
taking payments from foreign accounts.
We have a range of different products which help you to send and receive payments and keep the right
records in your accounts.
Accounting software
Sage One
With Sage One Accounting at only £10 plus VAT per month, you can create sales invoices in over 30 major
currencies and ensure any exchange rate changes are reflected in your accounts. And if you have any
questions just contact our customer services who are available 24/7 by telephone or email.
Click here to find out more
Sage 50 Accounts with Foreign Trader
Make trading with your overseas customers and suppliers straightforward. With Sage 50 Accounts and
Foreign Trader you can produce invoices in multiple currencies, manage exchange rate fluctuations and
add multiple currency bank accounts. You can also stay compliant with HMRC, EC Sales List and Intrastat
legislation for overseas trading.
Click here to find out more
Sage 200
Sage 200 business management software allows you to manage all your foreign currency trading with ease,
including exchange rate changes and their impact on business finances across all ledgers and cash book.
Move money from one bank account to another, and between currencies to maximise interest earned and
minimise overdraft charges. Essential for maximising your businesses’ exporting opportunity.
Click here to find out more
Sage Live
Sage Live is designed for companies who sell services. It allows you to manage multi-country, multi-currency
and differing legislation seamlessly in one piece of software. You get a single, real-time view of your business
and free up time to focus on developing your business internationally. Whether you’re in the UK or overseas,
you can access all your key information on your favourite device in the palm of your hand.
Click here to find out more
Click here to watch the video
How Sage can help
A marketer’s guide to exporting
12
Software to receive payments
Sage Pay
In order to expand your customer base and entice shoppers from overseas, understanding global checkout
preferences is key. Customers are much more likely to buy if they can purchase in their own currency.
Through Sage Pay’s Payment gateway, you can offer your customers a choice of options at no extra cost.
Click here to find out more
Software to make payments
Sage Payments
Sage Payments integrates seamlessly with Sage 50 Accounts allowing you to manage and make payments
straight from your software. With Sage Payments and Sage’s Foreign Trader module you can make payments
securely to the UK and 23 other countries worldwide with support for 11 different currencies.
Click here to find out more
How Sage can help
A marketer’s guide to exporting
13
Funding and finance
If you need extra support with the costs of starting to export, these organisations may be able to help:
•	UK Export Finance: They provide trade finance and insurance solutions to support UK exporters. There
are a range of options to help you minimise the risks of late payments or cover any guarantees.
	 Click here to find out more
•	Trade Access Programme: a UKTI scheme which provides grants to help with the costs of attending trade
shows overseas.
	 Click here to find out more
Information
There are several places to go for more information:
•	 UKTI website: www.gov.uk/government/organisations/uk-trade-investment
•	 Government website with advice for starting to export: www.gov.uk/starting-to-export
•	 Business is Great has a good section on exporting: www.greatbusiness.gov.uk/new-markets
•	Sage information about exporting in Europe: www.sage.co.uk/business-advice/growing-and-running/
small-business-tips-on-trading-in-europe
Other resources to help
A marketer’s guide to exporting
14
Sage (UK) Limited
North Park
Newcastle upon Tyne
NE13 9AA
www.sage.co.uk
© 2015, The Sage Group plc or its licensors. Sage, Sage logos, Sage product and service names mentioned herein are the trademarks of The Sage Group plc or its licensors.
All other trademarks are the property of their respective owners. 11/15 55345AL
Click here for more information or call 0800 923 0344
Like our Facebook page for more business advice
Proud supporters of National Exporting Week.
Click here to find out more

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Promoting your business abroad. A marketer's guide to exporting.

  • 1. A marketer’s guide to exporting Promoting your business abroad
  • 2. 3 Why export 4 Getting started 5 Did you know? 7 Marketing your business internationally 10 Legislation 12 How Sage can help 14 Other resources to help Contents A marketer’s guide to exporting 2
  • 3. Does your business export goods or services? If the answer is not yet, then now could be a great time to start. Exporting offers a number of benefits for businesses, including: • Increased sales and profits • A wider customer base with excellent spending power • A way to increase your market share • Lower cost of production if you achieve economies of scale • Less waste, as you can sell surplus stock overseas • A way to minimise the impact of changes in the local market, like economic downturns or a new competitor. According to figures from the UKTI, UK companies who do business overseas are more than 11% more likely to survive. You don’t have to be a big business to export. But before you jump straight in, it pays to do some research and prepare for the differences that come with trading overseas. Once you understand these, you’ll be well placed to take advantage of the benefits that exporting can bring to your business. Why export 3 A marketer’s guide to exporting
  • 4. Once you’ve recognised the opportunity for your business, there are some important steps to take before you can begin selling. The key thing is to ensure you’ve carried out the right research, so you know what’s involved. Market research It’s essential that you know which markets would be right for your products and how to reach these customers. There are many different options available, so it can be daunting to know where to start. The first step is to find out about each of the possible countries that you could export to and whether a market exists for your product or service. Here are a few ways to do this: • Look at your competitors: Where are they exporting? Are they doing so successfully? Check out their website, their press releases and your usual sources of competitor information to understand more about their approach. • Look at which markets are similar to the UK: Think about the types of products they use and whether they are likely to be interested in what you sell. Speak to the UKTI or contact the commercial officers at the British embassy in your target market, who have up-to-date market information. • Consider where your resources are: Exporting can be a very steep learning curve, so having local people on the ground who can offer advice and support can make things a lot easier. The best place to go for advice is UK Trade and Investment (UKTI) which offers a range of support for small businesses, from individual advice from a local trade expert to help with market research. They also offer assistance with visits to your target market, including meetings with other British companies already exporting and networking opportunities. The cost is just £200 + VAT - all flights, accommodation and other costs are covered by UKTI. Click here to find out more. Understanding cultural differences All countries have different cultures and, for those exporting for the first time, it can be easy to be caught out. Even if you speak the same language, you may find that their approach to doing business is very different. Getting started A marketer’s guide to exporting 4
  • 5. • In China, business cards are exchanged before the meeting and should be handled with great respect. • In Brazil, personal space is less valued, so you may find people stand very close to you. • In Japan, money is not openly displayed and is normally placed in an envelope. Modifying your products for the local market The most important aspects of product positioning are quality, competitive pricing and availability. However, while you may find that the goods or services you provide in the UK are suitable for international markets, there are a couple of factors to bear in mind: • Naming: We’ve all seen those photos from people’s holidays of products with names that we find amusing. Make sure you check whether your products have an amusing or unintentional meaning in your target market and if so, consider whether you would like to rebrand - and what the costs would be to do this. • Packaging: While you may think that your existing packaging will work overseas, be aware that legislation varies in different countries. For example, in Canada, the product details must be listed in both English and French. Check with the UKTI about the regulations for each country to ensure you have met the requirements. • Product specification: Depending on your product, this may be an area where cultural differences make a big difference to what will sell. For example, you may find that colours that sell in the UK are not popular overseas, or clothing may need to fit differently, or you need to change the power supply. This is where knowing your local market is essential. Look at what competitors are selling and ask the UKTI for advice on how to understand and adapt your products for an international market Ensuring you have capacity One important aspect of expanding into export is to ensure you can scale to meet the demand. This means you’ll need to plan for expansion in everything from raw materials and machinery to staffing. Don’t forget that this can also have an impact on your HR, finance and marketing activity too, so you need to make sure you have the resources and finances to meet the demand. UKTI offers a Passport to Export service, which includes support to help businesses assess the impact and whether they will be able to meet these demands. Click here to find out more Did you know? A marketer’s guide to exporting 5
  • 6. Understanding distribution options Knowing how to get your products out to your customers is an essential part of doing business. For some companies, it may simply be a case of advertising online and then shipping through a standard distribution network, like DHL or UPS. For other businesses, products are significantly larger and may need local support for installation and after-sales service. If you fall into this category, then you will need to consider the options. Firstly, how will you achieve the sale? Will you have local sales teams in place and if so, do you need to set up local offices or stores? Before you invest in this, think about whether you could instead use a local partner who could provide support and have an understanding of the local culture too. This can help minimise the risks. Export agents or overseas distributors could be an option. If you’re still responsible for the shipping, freight forwarders can remove the hassle by overseeing the distribution, packing, documentation and customs clearance on your behalf. The British International Freight Association (BIFA) can help you find a company who can do this for you. Click here to find out more If you take care of the distribution yourself, you’ll need stay up to date with the safety and security requirements that apply. You’ll also need to stay compliant with legislation - more about that is included later in the guide. Did you know? A marketer’s guide to exporting 6
  • 7. It’s essential that you get the word out, so your prospective customers know about you and your products. You will already know which marketing channels are successful for you in the UK so you may want to use the same types to reach your international audience. However, there are some specific things you’ll need to address. Adapting your website Your website is your shop window for your goods and services. If you already have a UK website, there are several things you’ll need to consider in order to get ranked well on search engines overseas. The first one is your domain. If you have a .co.uk website address, it could be worth your while getting the equivalent for each company that you’re planning export to (so .fr for France or .de for Germany). You can then use these domains to adapt your website to the local market. You should translate the content (including any image names and your keywords). Do invest in using a proper translation service rather than just running the content through Google Translate, as the quality of the content is essential. A good translator will also be able to point out any cultural differences that should be addressed. To find one, check out the Institute of Translation and Interpreting or The Chartered Institute of Linguists. If you sell online, it’s also essential that your website can handle multiple currencies and overseas shipping. Speak to your website developer about adding this functionality and make sure that it’s easy for you to update the costs when you need to. Finally, you should also be prepared for handling overseas returns. Have a clear returns policy and explain how this applies for international sales. Consider the costs of shipping and who will need to pay these. You also need to be up to date with the appropriate legislation in each country. UKTI can offer advice. Using other trading sites For many small businesses, one of the easiest ways to reach an international market is to trade through online marketplaces like Amazon, eBay and Etsy. In fact, a recent report showed that 81% of small businesses on eBay export to five or more countries. These businesses make it easy to take the first step into exporting by keeping costs low and allowing companies to test the market and gauge interest. But do be aware that the fees and taxes may be different if you’re trading internationally, so do take those costs into account. For a full list of available marketplace websites, click here. The UKTI also has its own store where you can sell your goods or services. Marketing your business internationally A marketer’s guide to exporting 7
  • 8. Advertising As with the other aspects of exporting, advertising is affected by cultural and legal differences. You need to understand both in order to promote your product effectively. Make sure that you have considered your text, colours, photography and style of advertising to ensure it fits with your local market. Be sure to check the local legislation covering how and what can be advertised. This will vary by country. You can find a list of advertising standards for different countries on this website. UKTI can also provide assistance with your advertising and marketing to ensure that it has the impact you want. Their Export Communications Review (ECR) can help you develop an international communications strategy. Click here to find out more Trade shows Attending trade shows is an excellent way of reaching out to your target audience and getting valuable feedback about your products and services. There are a huge number of trade shows that take place throughout the world and it can be hard to know how to find the right one. The first step is to know what’s on. There’s a list available online which includes the top shows, broken down by business sector and covering 115 countries. Once you have selected a few that fit your business, spend some time researching them and seeing if they are a good fit. If you need help with the cost of attending, UKTI runs a Tradeshow Access Programme (TAP). This provides funding for small businesses to attend trade shows overseas, with grants of £1,000 to £1,800 to attend six trade shows overseas. Click here to find out more Marketing your business internationally A marketer’s guide to exporting 8
  • 9. Social media You can reach out to your new audience through social media too. In general, your approach should be the same as it is for the UK, but do bear in mind some differences. The first difference is that different channels are more popular in different countries, so you may need to sign up for new social media platforms, depending on where you export. Here are the most popular platforms for some of the top export countries: Choose the right channels for your audience - research who uses them and how. Bear in mind that in China, some sites such as Facebook and Twitter are blocked, so you’ll definitely need to use their local channels. The next thing to bear in mind is language. As with your other marketing material, you’re likely to get a better response if you post in the local language. As social media is more informal and relaxed, you might not need to spend as much on translation. Some businesses use students from the country to translate their posts, or you can use sites like PeoplePerHour or UpWork to find translators. Just be sure you have a proper contract in place and trust the person who is translating or posting for you. It’s much harder to check the message when you don’t speak the language. Finally, as with all social media, make sure you have a plan in place and monitor how well your strategy is working. Remember that, due to cultural differences, you might need to adapt your approach to suit each country. Social media is a great place to try out new messages or new ways of communicating, as the costs are low. Don’t be afraid to experiment. Marketing your business internationally Germany Netherlands France China Facebook Facebook Facebook Qzone Instagram YouTube YouTube QQ YouTube LinkedIn Viadeo Weibo A marketer’s guide to exporting 9
  • 10. In a survey by UKTI, companies said that legislation was the biggest issue affecting their ability to export, with 43% saying it was a barrier. Here’s a quick rundown of some of the key things you need to know. VAT rules The rules vary depending on whether the destination is inside or outside the EU. Within the EU You’ll need to: • Record all goods sold on your VAT return • Fill in an EC Sales List • Fill in an Instrastat Declaration if your total sales are worth more than £250,000 • The following rules apply when you’re selling goods: If you’re selling services, you need to: • charge VAT at UK rates to non-business customers • not charge VAT for business customers who will be responsible for paying VAT in their country The rules vary for certain services, such as transport, land and property services and electronic services. You can find out more on the Government’s website. Legislation If your customer is VAT registered in their country If you customer isn’t VAT registered You don’t pay any VAT, as these goods are zero-rated You will normally have to pay UK VAT The customer will pay VAT at their country’s rate Exceptions apply if the goods are over the amount called the “distance selling threshold”. In this case, you must register for VAT in each country and charge the local rate of VAT. Click here to find out more Make sure you get your customer’s VAT registration number and keep all paperwork to show when the goods were sent. A marketer’s guide to exporting 10
  • 11. Outside the EU Most goods can be zero-rated but you’ll need to: • get evidence that the goods have left the EU • keep a record of the export in your VAT account • If your customer collects the goods, you’ll need to keep more detailed records. For services sold to customers outside the EU, there is no VAT charge. Duty and customs If you’re sending goods or services within the EU, then you don’t need to pay duty and there are no customs checks. Outside the EU, you will need to submit an export declaration. You may also need an export licence, for example for agricultural goods, machine tools, electrical equipment and some antiques. The Export Control Organisation can provide more information. Once the goods arrive at their destination you may also need to pay custom duties and taxes. This depends on the legislation in each country. You might be able to claim “duty relief” for some exports and some countries have trade agreements in place to lower or eliminate duty charges. In order to pay the right tax and comply with legislation, you’ll need to have a commodity code for the goods you’re exporting. These can be found using the online Trade Tariff tool on the Government’s website. Export declarations If you’re exporting outside the EU, you will also need to submit an electronic export declaration. You can do this by registering for an Economic Operator Registration Identification number (EORI), registering for the Customs Handling of Import and Export Freight system (CHIEF) or submitting your export declaration through the National Export System (NES) which is part of CHIEF. If you’re using a freight forwarder, they may handle this for you. For more information You can find out more about the legislation for individual markets here. UKTI can also provide advice. Legislation A marketer’s guide to exporting 11
  • 12. When you’re trading overseas, it’s important that your software makes everything as easy as possible. You’ll need to be able to deal with exchange rates, different currencies and taking payments from foreign accounts. We have a range of different products which help you to send and receive payments and keep the right records in your accounts. Accounting software Sage One With Sage One Accounting at only £10 plus VAT per month, you can create sales invoices in over 30 major currencies and ensure any exchange rate changes are reflected in your accounts. And if you have any questions just contact our customer services who are available 24/7 by telephone or email. Click here to find out more Sage 50 Accounts with Foreign Trader Make trading with your overseas customers and suppliers straightforward. With Sage 50 Accounts and Foreign Trader you can produce invoices in multiple currencies, manage exchange rate fluctuations and add multiple currency bank accounts. You can also stay compliant with HMRC, EC Sales List and Intrastat legislation for overseas trading. Click here to find out more Sage 200 Sage 200 business management software allows you to manage all your foreign currency trading with ease, including exchange rate changes and their impact on business finances across all ledgers and cash book. Move money from one bank account to another, and between currencies to maximise interest earned and minimise overdraft charges. Essential for maximising your businesses’ exporting opportunity. Click here to find out more Sage Live Sage Live is designed for companies who sell services. It allows you to manage multi-country, multi-currency and differing legislation seamlessly in one piece of software. You get a single, real-time view of your business and free up time to focus on developing your business internationally. Whether you’re in the UK or overseas, you can access all your key information on your favourite device in the palm of your hand. Click here to find out more Click here to watch the video How Sage can help A marketer’s guide to exporting 12
  • 13. Software to receive payments Sage Pay In order to expand your customer base and entice shoppers from overseas, understanding global checkout preferences is key. Customers are much more likely to buy if they can purchase in their own currency. Through Sage Pay’s Payment gateway, you can offer your customers a choice of options at no extra cost. Click here to find out more Software to make payments Sage Payments Sage Payments integrates seamlessly with Sage 50 Accounts allowing you to manage and make payments straight from your software. With Sage Payments and Sage’s Foreign Trader module you can make payments securely to the UK and 23 other countries worldwide with support for 11 different currencies. Click here to find out more How Sage can help A marketer’s guide to exporting 13
  • 14. Funding and finance If you need extra support with the costs of starting to export, these organisations may be able to help: • UK Export Finance: They provide trade finance and insurance solutions to support UK exporters. There are a range of options to help you minimise the risks of late payments or cover any guarantees. Click here to find out more • Trade Access Programme: a UKTI scheme which provides grants to help with the costs of attending trade shows overseas. Click here to find out more Information There are several places to go for more information: • UKTI website: www.gov.uk/government/organisations/uk-trade-investment • Government website with advice for starting to export: www.gov.uk/starting-to-export • Business is Great has a good section on exporting: www.greatbusiness.gov.uk/new-markets • Sage information about exporting in Europe: www.sage.co.uk/business-advice/growing-and-running/ small-business-tips-on-trading-in-europe Other resources to help A marketer’s guide to exporting 14
  • 15. Sage (UK) Limited North Park Newcastle upon Tyne NE13 9AA www.sage.co.uk © 2015, The Sage Group plc or its licensors. Sage, Sage logos, Sage product and service names mentioned herein are the trademarks of The Sage Group plc or its licensors. All other trademarks are the property of their respective owners. 11/15 55345AL Click here for more information or call 0800 923 0344 Like our Facebook page for more business advice Proud supporters of National Exporting Week. Click here to find out more