How to Export Products to the EU Without an EU Entity
Now that we have hopefully put the pandemic behind us for good, it is time to focus on business again. International import/export business has increased extremely after the pandemic. Many such export businesses send products around the world from offices in their home countries, or even from their rooms (think of the many Shopify stores). What most entrepreneurs forget in this process is the corporate side of an import/export business. In this blog, we explain to you what is important to start an export-related business, in which products will have to enter the EU. This is something FirmEU can help your export company with, so if you have any questions about this, don't hesitate to message us, and one of our experts will advise you!
The Importance of Having a European Entity
At first, it may not seem necessary to set up a new company (usually an LLC) within the EU. I can just send the products from my non-EU company to my customers (B2B or B2C) in the EU, right? Indeed, this may not seem so complicated at first, but in practice, it works differently.
The customs departments of EU countries often ask for certain information, which in most cases can only be obtained by companies within the EU. If you, as a non-EU company, do not have this information, it is possible that your products end up in a moist warehouse at a specific EU customs office. FirmEU can play an important role in this, in cooperation with EU customs!
EU VAT Number
The main problem faced by exporters without an EU company is that they do not have an EU VAT number. These companies cannot be found in the VIES VAT register. This is a database where all EU-registered VAT companies can be found. Customs expects companies to have an EU VAT number so that the import VAT can be paid properly. However, obtaining a VAT number can take months in the majority of EU countries. Hence, many companies are looking for a faster solution. FirmEU can apply for a VAT number for your company in all of the EU countries.
Should you happen to do business with an EU company that claims to have a VAT number? Request this number, and check it in the VIES VAT register!
EU EORI Number
This is an identification number that all import/export companies need when they want to import or export goods into or out of the EU. An EORI number is assigned by the member state where your company is established. Therefore, when your products arrive at customs in an EU country, you will be asked for your EORI number. FirmEU can obtain the EORI number quickly and quite easily for your company!
In case you have any doubts, an EORI number and a VAT number are completely different. A VAT number is used to access taxes. The EORI number identifies importing/exporting companies doing business in the EU.
Customs Broker
When your products are held up in an EU country, FirmEU can take care of the outstanding payments for you, for example, import VAT. This VAT can be recovered at a later stage. Also, the costs for our recognized EU customs broker partner have to be paid. FirmEU works with a large list of EU customs brokers.
How Can FirmEU Help? EU Customs clearance service
FirmEU can take all these burdens off your hands, especially so if you want or need to export to your EU customers at short notice. In addition, should you need help with transporting your products within the EU, please let us know as well? We have solutions for this as well, which will ease your business tendencies.
Just so you know, FirmEU always works on the basis of contracts! These will describe the rights and liabilities of the client, as well as for FirmEU.
Would you like to know which EU country would be best for you to establish an export company? Feel free to contact us, and one of our experts will be in touch!
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