5 Tips for Exporting to Germany

5 Tips for Exporting to Germany

Adele - July 26, 2017

There are different reasons why most companies in UK prefer to expand their business to Germany. The country is known for their attention to detail and work ethics, which is why most business owners are drawn into this country. In addition, the country constantly ranks on the top list of European nations when it comes to investments. The demand for domestic products has also immensely increased over the past few years. However, before you start to look for parcel delivery to Germany from UK, you might want to read our list of essential tips.

Important tips that you need to keep in mind when exporting your business to Germany

With cheap rental rates and an ideology that is based on sharing, combined with the influx of the migrants, Germany presents a great opportunity to expand your business overseas.

1. Understand how the VAT and Taxes work

Before you start exporting your products and goods to Germany, it is essential to establish that the recipient of the goods will be the one to settle the VAT. The business is not responsible to pay for the VAT on the goods that are being exported to the country. Parcel delivery to Germany from UK requires an understanding of how the tax system works. On the off chance that you have been exporting your goods in the Germany for quite some time, DHL believes that you are probably VAT registered and you are keeping an account on your VAT return. Make sure that your recipient will provide you with their registration number that allows you to track your VAT Return. In the event that the recipient has no registration, you will need to shoulder the VAT on UK rate.

2. Consider the registered Co-Operative System

According to the Cooperative Act of 2006, the amount of founding members has been greatly reduced from the minimum of seven members to only three. This simply means that you only need a reduced amount of capital when exporting your business to Germany. While the government may require written statutes, notary certification will not be necessary. Parcel delivery to Germany from UK will be a lot simpler with the help of the registered co-operative system.

3. Understand the Bureaucracy in Germany

Germany is a country that is known for efficiency, but despite that, it remains a bureaucratic country. The economy is designed to support heavy industry rather than the SME. Fortunately, the country is already doing measures to reduce red tape. Before you ship to Germany from UK, DHL believes that you need to start by clearing the name of the company at the country’s chamber of commerce. 

4. Don’t easily assume that Berlin is a heaven for Startups

Berlin is one of the major destinations for traders who want to expand to Germany. It has been one of the best places for the startups in Europe due to the low costs and the huge pool of talent. Unfortunately over the past few years, the city has been struggling to maintain their reputation due to the difficulty in finding suitable financing. Before booking a shipment to Germany from UK, DHL believes that you should first consider the financing difficulty.

5. Determine areas of opportunity

Before you start acquiring the services of couriers from United Kingdom to Germany, you will need to identify the key places that will encourage the growth of your trade. The areas of opportunity will depend on the nature of your business. It is important to understand the purchasing behaviour of the consumers before investing your hard-earned cash.

 

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