breakfast briefings - december 2017
TRANSCRIPT
International trade - Export: business support, funding and tax (VAT)
Breakfast Briefings: Winter 20177th December 2017
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Administration
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UK and Exports: a topical item
"We’re still way behind where our economy
needs to be. So, we need to think about how
we can make our economy export ready,
and more investment ready as well, and how
we get more of our companies to think about
exporting overseas.“ Dr Fox 23/11/17
"The UK has a good record for exports," a
spokesperson for the prime minister said on Friday.
"We have a good record here. Exports rose by 13.6%
to 502 billion in the latest year on year figures. So we
want to build on that and do more to help exporters."
They added: "We are running successful campaigns
to sell more overseas. We are committed to helping
British business make use of the opportunities that
are available both now and after Brexit."
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.
Presentations followed by discussion
Presenter Topic
Dr. Colin Piper
Export Manager, Department for
International Trade
Overview of one the Export for
Growth programme: a programme
aimed at supporting those new to
export and those looking to export to
new markets
Ross Bond
VAT Senior, PKF Francis Clark
VAT for exporters…practicalities and
pitfalls
Julie Ounsworth
International Director in the South
West, Santander
Finance for export, including UK
Export Finance (UKEF)
Supporting South West businesses to boost international trade
Colin Piper
Opening up International Opportunities -If you can sell in the UK you can sell
anywhere
Why look outside the UK?
• Discovery of an opportunity in an overseas market
• Increased competition in your current domestic market
• To access a bigger market and find more customers/clients
• To increase profitability either through increased sales or greater margins
• Risk mitigation – spreading your risk over several markets
• To increase competitive advantage – perception as an international business
• New market to try new things
Export is not a straight road!
Image of ‘The River’
There may be a few bends on the way!
ERDF – Export for Growth
Export Essentials
ERDF – Export for Growth
•Experienced and high growth exporters
•Consultative support focused on high growth markets
•Overseas market advice specialists
•Market readiness assessment
•Research and planning
•Sales and marketing strategy
•Preparation and risk assessment
•Market entry support
Extend Your Global Reach
China
India
SE AsiaLatin
America
Contact us
•https://www.export4growth.co.uk/contact-export
•01275 774456
VAT for exporters…practicalities and pitfalls
Ross Bond December 2017
Introduction
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Exports – VAT Treatment and Pitfalls
Goods Sold to EU Customers
Points to Consider: Goods only temporarily exported/imported
Supply of services have different rules
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Zero rated
Goods leave UK within 3 months of sale (6 for processed goods)
Official and commercial evidence held
Keep supplementary evidence of the export
Exports VAT Treatment and Pitfalls
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Not an export but a dispatch
Same rules for zero rating as export
BUT customer must be registered for VAT
Show EU VAT number on VAT invoice
EC Sales Lists and Intrastat Declarations
Goods Sold to EU Customers
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• Import VAT and Duty Reliefs
• IPR and OPRGoods Temporarily Exported/Imported
• Place of Supply – B2B or B2C
• Special Rules for Certain Supplies, e.g. Land Related
Supply of Services - Different Rules
Points to Consider
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circulate either within your business or for public or commercial purposes any of (or any part of) these materials and / or any services provided by PKF Francis
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the conditions implied by law) in respect of these materials and /or any services provided by PKF Francis Clark.
These materials and /or any services provided by PKF Francis Clark are designed solely for the benefit of delegates of PKF Francis Clark.
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ensure that the materials and / or any services provided by PKF Francis Clark are correct, we do not warrant the completeness or accuracy of the materials
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PKF Francis Clark is a trading name of Francis Clark LLP. Francis Clark LLP is a limited liability partnership, registered in England and Wales with registered
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audit work in the UK and Ireland, regulated for a range of investment business activities and licensed to carry out reserved legal activity of non-contentious
probate in England and Wales by the Institute of Chartered Accountants in England and Wales. Partners acting as insolvency practitioners are licensed in the
UK by the Institute of Chartered Accountants in England and Wales. A partner appointed as Administrator or Administrative Receiver acts only as agent of the
insolvent entity and without personal liability. Francis Clark LLP is a member firm of the PKF International Limited network of legally independent firms and
does not accept responsibility or liability for the actions or inactions on the part of any other individual member firm or firms.
Disclaimer & copyright
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Helping businesses grow Internationally
Santander International The World Awaits Your
BusinessCreating Export Legends
Julie OunsworthInternational Director South West
Helping businesses grow Internationally
AGENDA
Getting Paid
The Path to International Success – Trade Portal
Trade Club, Trade Network, Trade Missions
Helping businesses grow Internationally
What are the
risks in trading
internationally?
Helping businesses grow Internationally
Commercial Risk
•Breach of contract
– Delivery of goods
– Quality of goods
•Payment risk
– Non-payment/insolvency – buyer’s creditworthiness
– Retention and set-off
– Secured payment
Commercial risk is determined by
the nature of the parties and their contractual relationship
Helping businesses grow Internationally
Political Risk
•Political facts
– War – insurrection
– “Force majeure” and governmental measures
– Embargo – sanctions
•Economic and monetary facts
– Foreign exchange (transfer risk)
– Temporary currency shortage
– Deferral/suspension of payments
– Currency fluctuations
Political risk is determined by the location
Helping businesses grow Internationally
Helping businesses grow Internationally
Transport Risk
Hundreds of luxury Land Rovers
salvaged from capsized transporter
ship could be SCRAPPED: Cars
finally arrive back on dry land - but
face being crushed despite having
just dents and scratches
Helping businesses grow Internationally
Country Risk map
Very low
risk
Very high
risk
Helping businesses grow Internationally
Usual ways of payment
Open Account
Advance Payment
Ex
po
rte
r Imp
orte
r
Mitigate
RiskEnable
Growth
Least
Secure
Least
SecureMost
Secure
Most
Secure
Documents against Payment
Letter of credit
Helping businesses grow Internationally
28
Santander Invoice Finance
Immediate injection of cash against outstanding invoices.
Release up to 85% of invoice value.
An ongoing supply of cash against the value of invoices as they are raised
Optional managed invoice collections from your customers.
Tracking of your account online 24/7 with our secure Client Access service.
Bad debt protection available.
Accounting package for data extraction minimizing client facility administration.
Helping businesses grow Internationally
How it works
• As you raise an invoice and send it to us, we’ll
release up to 85% of the value of that invoice within
24 hours.
• The remaining value, less a small service fee, will
be paid to you once your customer pays.
• You’ll be able to track payments received using our
secure online Client Access service, so you will
always know how much funding you have at any
given time.
Helping businesses grow Internationally
30
Bad Debt Protection
Protects up to 90% of all approved bad debts you may suffer.
Protects against the insolvency, or protracted default of your customers.
Protects sales to UK customers, and to customers based outside the UK.
Simple online credit checking system may help you spot a potential credit
risk problem before it becomes a bad debt.
24/7 monitoring of your customer limits.
Provides a business advantage by allowing flexible credit terms.
Enables you to enter new markets and expand your business by providing
security – you will know the financial viability of whom you are dealing with.
Enhances business controls.
Helping businesses grow Internationally
Documents against Payment
Payment or acceptance notice6
Payment or
acceptance notice7Presentation of documents4
Commercial documents
+collection instructions3
Commercial documents
+collection instructions2Payment or acceptance5
Goods shipped1Seller / Supplier
EXPORTER
Buyer
IMPORTER
Presenting Bank
Helping businesses grow Internationally
Letters of Credit
Sending documents to issuing bank8
Notification/Confirmation4
Issue LC3
Application form2Presentation of
documents6
Contract1
Shipment of the
goods5
Payment to
beneficiary7
Reimbursement9
Delivery of documents
to applicant10
Reimbursement11
Delivery of goods12
Seller / Supplier
EXPORTER
Buyer
IMPORTER
Issuing Bank
Helping businesses grow Internationally
33
Export loans and UKEF
Typically for higher value, lower volume goods.
Advance to cover manufacturing costs based on contract cash flow.
Short term, specific loan to be repaid on receipt of payment via LC,
Collection or Open Account.
Open account = higher risk.
Can be backed by UK Export Finance.
UKEF Working Capital Scheme or Bond Support Scheme.
Partial Guarantees to banks – up to 80% of the risk
Helping businesses grow Internationally
34
Export loans
Helping businesses grow Internationally
An export is a gift until it is paid for……. 35
Helping businesses grow Internationally
Challenges for Customers Looking Abroad
Will my lack of
knowledge be
exploited,
leading to
higher service
costs?
Who can I
trade
abroad
with?
How do I
start trading?
How can I
ensure I will
be paid?
Can I trust
local
partners?
I can’t speak
the language!
What
documents
do I need?
Which countries
have the best
markets for my
industry?
LACK OF
KNOWLEDGE,
AND FEAR
Out of 250 UK businesses:
• 28% thought determining where the opportunities are was the biggest challenge when expanding abroad
• 25% thought lack of local knowledge was the biggest challenge when expanding abroad
• 19% thought lack of funds was the biggest challenge when expanding abroad
• 13% thought language barriers were the biggest challenge when expanding abroad
Helping businesses grow Internationally
37
A 5 Step Plan to Support Expansion
EXPORTING
TRADE PORTAL
CONNECTING OVERSEAS
ALLIANCES AND
PARTNERSHIPS
GLOBALCHAMPIONTRADE CLUB
SETTING UP ABROAD
INTERNATIONALDESK/PASSPORT
COPING WITHGROWTH
GROWTH CAPITAL
STEP 1 STEP 2
STEP 3 STEP 4 STEP 5
Helping businesses grow Internationally
38
Free to try on www.santandertrade.com
A market leading tool free for Santander customers• Demystifies the challenges of understanding trade
opportunities• Helps our customers understand which countries to trade
with• Answers a lot of first time trade questions
Where?
Who?
How to connect?How to
execute?How to set-up?
10,000 pages covering 185 countries
40,000 trade shows by sector
60,000 suppliers
100,000 importers
1 million public and private tender
opportunities
38
Helping businesses grow Internationally
SANTANDER GLOBALLY
Over 117 million customers and over 185,000 employees
in over 10 main markets
Nearly 13,000 branches worldwide – more than any other
international bank
Santander is the world’s number 4 financial brand
according to Brand Finance*
Santander is one of the top ten World’s Largest Banks**
Santander UK plc voted Best International Solutions Bank
and Best Innovation in SME Banking (Trade Portal) 2015 by
Business Moneyfacts
Source: Santander UK Annual Account 2014
*Brand Finance, 2014
**Forbes, The World’s Largest Banks, 2015
Helping businesses grow Internationally
Helping businesses grow Internationally
Santander’s International Desk & the Alliance Partners’ Global Footprint
Global Reach, Local Support
Multilingual teams spread across 15 global markets dedicated to helping businesses establish overseas or expand further
We extend our reach via partnering with banks who provide a premium service to our clients doing business in other markets
The desk’s have expert knowledge on the ground and valuable insight into the local macroeconomic, financial, regulatory and business environment of the chosen market
Offering specific products and services for foreign investors and simplifying complex international processes
With our local information, and our banking products and services, we can connect with the key people
Helping businesses grow Internationally
Trade Missions, Trade Shows and Meet the Buyer Events
Helping businesses grow Internationally
54
Where Next
Sector
International
Local
Helping businesses grow Internationally
Santander International Export Legends Created
‘Shaping the Future’
Julie Ounsworth: 07525597679
International trade - Export: business support, funding and tax (VAT)
Breakfast Briefings: Winter 2017 Wrap up: Scott Bentley, Partner, Francis Clark 7th December 2017
PKF International is a global network of legally independent firms bound together by a shared commitment to quality, integrity and the creation of clarity
in a complex regulatory environment. Through the network we are able to access truly international expertise, whilst remaining an independently owned
firm. Working in combination with local PKF International member firms as well as our international tax team at PKF Francis Clark, means that we are able
to support our clients in respect of international trade and corporate expansion.
• PKF is in the top 12 of worldwide accountancy networks
• PKF in the UK is ranked, by Accountancy Age Top 50 Firms, as number 11 (operating as a network)
• Global network of over 300 independent member firms
• 440 locations in 150 countries
• A team of 14,000 including 2,600 partners
• Over $2.3bn revenue
PKF INTERNATIONAL - A GLOBAL NETWORK
Next…
Q&A and/ or discussion
• With opportunity for Q&A for presenters
• Discussion
Future presentations
• EMI and other options (09/01/18) – invite in pack
• The Cornwall Fund (06/02/18)
• Finance in Cornwall (18/04/18)
pkf-francisclark.co.uk
(c) copyright PKF Francis Clark, 2016
You shall not copy, make available, retransmit, reproduce, sell, disseminate, separate, licence, distribute, store electronically, publish, broadcast or otherwise
circulate either within your business or for public or commercial purposes any of (or any part of) these materials and / or any services provided by PKF Francis
Clark in any format whatsoever unless you have obtained prior written consent from PKF Francis Clark to do so and entered into a licence.
To the maximum extent permitted by applicable law PKF Francis Clark excludes all representations, warranties and conditions (including, without limitation,
the conditions implied by law) in respect of these materials and /or any services provided by PKF Francis Clark.
These materials and /or any services provided by PKF Francis Clark are designed solely for the benefit of delegates of PKF Francis Clark.
The content of these materials and / or any services provided by PKF Francis Clark does not constitute advice and whilst PKF Francis Clark endeavours to
ensure that the materials and / or any services provided by PKF Francis Clark are correct, we do not warrant the completeness or accuracy of the materials
and /or any services provided by PKF Francis Clark; nor do we commit to ensuring that these materials and / or any services provided by PKF Francis Clark
are up-to-date or error or omission-free.
Where indicated, these materials are subject to Crown copyright protection. Re-use of any such Crown copyright-protected material is subject to current law
and related regulations on the re-use of Crown copyright extracts in England and Wales.
These materials and / or any services provided by PKF Francis Clark are subject to our terms and conditions of business as amended from time to time, a
copy of which is available on request.
Our liability is limited and to the maximum extent permitted under applicable law PKF Francis Clark will not be liable for any direct, indirect or consequential
loss or damage arising in connection with these materials and / or any services provided by PKF Francis Clark, whether arising in tort, contract, or otherwise,
including, without limitation, any loss of profit, contracts, business, goodwill, data, income or revenue. Please note however, that our liability for fraud, for
death or personal injury caused by our negligence, or for any other liability is not excluded or limited.
PKF Francis Clark is a trading name of Francis Clark LLP. Francis Clark LLP is a limited liability partnership, registered in England and Wales with registered
number OC349116. The registered office is Sigma House, Oak View Close, Edginswell Park, Torquay TQ2 7FF where a list of members is available for
inspection and at www.pkf-francisclark.co.uk. The term ‘Partner’ is used to refer to a member of Francis Clark LLP or to an employee. Registered to carry on
audit work in the UK and Ireland, regulated for a range of investment business activities and licensed to carry out reserved legal activity of non-contentious
probate in England and Wales by the Institute of Chartered Accountants in England and Wales. Partners acting as insolvency practitioners are licensed in the
UK by the Institute of Chartered Accountants in England and Wales. A partner appointed as Administrator or Administrative Receiver acts only as agent of the
insolvent entity and without personal liability. Francis Clark LLP is a member firm of the PKF International Limited network of legally independent firms and
does not accept responsibility or liability for the actions or inactions on the part of any other individual member firm or firms.
Disclaimer & copyright
pkf-francisclark.co.uk