Blog

How Will A No Deal Effect VAT Procedure

Below is our quick guide on how Brexit could effect VAT procedure. Make sure you understand how this will effect your imports and exports as you will have to understand these changes:

 

Imports:

  • Postponed accounting for EU imports
  • Importers will account for import VAT on their existing VAT returns

 

Exports:

  • Retain evidence that goods have been exported to EU member states
  • Remember tat the customs declaration system will be paperless
  • Exported goods to EU will be zero rated on commercial invoice
  • EC sales list will no longer be used to declare exports to EU
  • Make sure your company’s export software is adjusted to reflect changes
  • Register for AEO for imports and exports.

 

 

Validated By The London Institute Of Shipping And Transport

For those interested in enrolling on our online course, rest assured we are no fly-by-night company and have been validated by The London Institute of Shipping and Transport since 2005.

Have confidence in our online International Trade course and the practical, hands-on nature, showing you how to trade globally, ensuring you trade profitably from day one and avoid many of the common and most costly pitfalls of importing and exporting.

We’ve trained hundreds of students and helped further their careers as well as helped setup countless successful businesses, with many of our students now their own boss running their own successful companies.

With over 30 years of experience, we’re here to offer you one-to-one support and bring your career or business to the next level.

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Negotiation Techniques for International Trade

Negotiation is a fundamental part of international trading.  You will have to negotiate every part of the deal with suppliers, wholesalers, retailers, pricing and terms of delivery.  Understanding how to negotiate is one of the cornerstones to making your business successful.

Below is our 5 Key Steps To A Successful Negotiation:

5-Steps-To-Negotiation-1000

Important!: Many deals are negotiated based on matching personalities, not cost alone. If you can find something in common and personalities work well, this can seal the deal.

Step 1:  Defining Objectives And Targets: Start with preparing your “L-I-M”.

1. Recognizing the objectives you would LIKE (L) to achieve. What does the perfect deal look like to you?

2. Identify what objectives you INTEND (I) to achieve.

3. Finally, recognize the MINIMUM (M) you’ll accept.

Step 2:  Setting The Negotiation Strategy.

Are you working towards a Win-Win or a Win-Lose strategy? A win-win leads to collaboration, mutual interest, flexibility, joint problem solving and harmony between the parties, a good strategy for a long term relationships.

A win-lose strategy can lead to conflict, inflexibility, competition, one side beating the other and adversarialism. This strategy can be used in one-off deals.

Step 3:  Active Listening: Concentrate on what is being discussed. Don’t answer back or interrupt. Try to understand the other persons point of view and don’t jump to conclusions.

Step 4:  Methods Of Persuasion: One or several of the following methods of persuasion can be used. Logic, bargaining, emotion, even threats and of course, compromise. It is up to you to select the correct one(s) for a particular situation.

Step 5:  Your Style Of Negotiating: Find your own style. Warm, tough, logical, personality driven perhaps. Recognize these traits in the other party and respond accordingly.

Exporting From The UK: The 9 Most Costly Mistakes

Exporting can be complicated and take time to understand.  It’s worth researching or even signing up to a course that will teach you in depth knowledge to trade internationally. There are many pitfalls and costly mistakes that you should be aware of.  Below and the 9 most common and costly:

 1. Not understanding effective sourcing techniques.
Result: You’re limiting potential suppliers and perhaps not getting the best products at the most competitive price.

2.Not identifying  ALL costs from seller to buyer.
Result: Not realising expected profit margins but increased costs.

3.Not understanding  import custom regimes and correct tariff  number.
Result:  Not minimising your  import custom duty leading to higher, unnecessary costs.

4. Not understanding Sea/ Air freight rate structures.
Result: Being overcharged by your Freight forwarder.

5. Not understanding method of payments available.
Result: Negative cash flow, not using method of payment as a negotiating tool.

6. Not undertaking  how to conduct in depth and comprehensive market research.
Result: Dead stock or limiting your customer base.

7. Not identifying most advantageous channel to sell your goods through wholesalers, retailers, direct to public via own retail outlet or websites.
Results: Lost sales.

8. Not understanding your responsibilities  and costs under the Term of Delivery used in the sales contract.
Result: Charged for costs you are not responsible for, reducing your profit margins.

9. Lacking negotiating skills.
Result: Loosing out on negotiations and not receiving the best deal that you could have.