Selling outside the EU: a first export checklist

A first order from outside the European Union is exciting and easy to get wrong. Most problems come from four things agreed too loosely: who pays for what part of the transport, when you get paid, what paperwork goes with the goods, and how VAT is handled. Settle these before you confirm the order.

1. Check the market before you quote

• Is your product allowed in the buyer's country, and does it need local marks, labels in the local language or tests there? The EU's Access2Markets portal shows duties and requirements for most countries.
• What import duty will the buyer pay? It changes the price they compare you on. Ask the buyer, or look it up with your product's commodity code (see the customs guide).
• Does the EU have a trade agreement with that country? If so, your goods may enter with lower or no duty when you prove EU origin.

2. Agree who pays for transport and risk: Incoterms

Incoterms are standard three-letter terms that say where your responsibility ends. Write the term, the place and the version in the quote and the contract, for example "FCA Kaunas, Incoterms 2020".

• EXW (Ex Works): the buyer collects from your gate and handles everything. Simple for you, but you still need proof of export for VAT, which is hard to get under EXW.
• FCA (Free Carrier): you hand the goods, cleared for export, to the buyer's carrier. Usually the best first choice for a small exporter.
• DAP (Delivered at Place): you deliver to the buyer's address; the buyer pays import duty and taxes.
• DDP (Delivered Duty Paid): you pay everything, including import taxes in the buyer's country. Avoid it until you know that country's rules well.

3. Get paid safely

• For a new buyer, ask for an advance payment for at least the cost of materials.
• For larger orders, a letter of credit or a bank guarantee moves the risk to banks. Ask your bank what it costs before you quote.
• Export credit insurance covers a buyer not paying. Ask your bank or an export credit insurer.
• Agree the currency. If you invoice in euro, the buyer carries the exchange-rate risk.

4. Put it in writing

A short contract or order confirmation should state: product and specification, quantity, price and currency, Incoterm with place, delivery date, payment terms, who arranges insurance, which law applies, and how complaints are handled.

5. VAT on exports

Goods that leave the EU are normally invoiced without VAT (0 % rate), but only if you can prove they left: keep the export declaration confirmed by customs. Without it, the tax authority can charge you VAT. Within the EU it is different: a sale to a company in another EU country with a valid VAT number is invoiced without VAT under the intra-EU rules, and you report it in your VAT return and recapitulative statement.

Where to get help

• Access2Markets (European Commission): duties, rules and procedures by country and product.
• Your local Enterprise Europe Network office: free advice and partner search.
• In Lithuania, Innovation Agency (Inovacijų agentūra) export services and the Lithuanian customs information centre.

This guide is general information, not legal or tax advice. Check the rules for your product and country before you sign.