Eurora, an AI/ML-backed cross-border trade compliance company, launched its Service Portal, meant for UK’s SMEs. The portal provides access to a full suite of low-cost services required for international trade compliance via the Import One Stop Shop (IOSS) Service and Core Business Bundle, allowing SMEs to reengage with over 500 million consumers in the European Union (EU).
Paul Scratchley, Commercial Director of Eurora, said, “SMEs, especially businesses on the small end of the spectrum, have been hit disproportionately by the red tape and regulatory changes caused by Brexit. We’ve put together a full suite of international compliance services at an affordable price point, specifically tailored for SME businesses. Clients get a personal tax expert to help them navigate the paperwork and lower fees. Even UK VAT returns submissions are included in the offering, so companies can focus on growing their business within the EU.“
Impact of Brexit on SMEs’ Export
After leaving the EU, companies faced additional courier fees, duties on goods originating outside the UK, administration of VAT and other Brexit-related costs. From 1st July 2021, the EU introduced new rules on how VAT is accounted for in cross-border trade. The changes mean businesses selling goods valued up to £135/€150 to customers in the EU, will have to charge import VAT. Calculating, collecting and paying the correct amount of VAT due on sales remains the main area of confusion for SMEs. The new IOSS system is designed to make accounting for VAT easier; however, the rules also state that UK businesses must use an intermediary, such as Eurora, to sign up for an IOSS number.
According to a survey conducted by the British Chamber of Commerce (BCC), amongst 1,000 SMEs, 20% of respondents said they could not meet the requirements of the UK-EU Trade and Cooperation Agreement (TCA) to export to the EU block. Other top barriers for exports were costs and disruption (48%), as well as tariffs (48%) and customs procedures (47%). A further 41% of businesses said regulatory issues such as product certification hindered trade. Eurora’s Service Portal offers all the solutions SMEs need to resume trade with the EU and cut through the red tape caused by Brexit.
Full suite of cross-border trade compliance services
The subscription-based IOSS Service provides customers with a dedicated tax consultant who will look after the clients’ IOSS registration and offers personalised support and advice. The consultants guarantee that all low-value shipments (up to £135/€150) to the EU fully comply with VAT legislation. The registration can usually be completed in a matter of hours, and the prices for the subscription start from €49 a month for 25 shipments.
Eurora’s Core Business Bundle enables SMEs to access the minimum requirements for international shipping – automated product classification (HS) code* allocation, Duty & Tax services, and Denied Parties and Import Restrictions screening. There are more than 5,000 different HS codes, and misallocating the code can result in paying incorrect duty and taxes and a fine from the authorities. The Core Business Bundle launched as a pay-per-use service and can be used immediately after purchase. The prices start from €49.00 for 500 credits, with one credit used per enquiry.