Contractors and small business have welcomed the news that the EU is proposing an optional EU-wide sales law after results from a survey carried out by the Federation of Small Businesses (FSB) has shown that 43% of small firms use the internet to trade across the border but that legal obligations and sales disputes are consistent barriers.
The results of the ‘Voice of Small Business’ survey panel confirm that nearly a fifth of small businesses that sell online to other EU countries would welcome the optional European common sales law.
The FSB have been calling for government support of the plans to enable small businesses to draw up contracts with the EU much easier.
John Walker, the National Chairman of Federation of Small Businesses, said:
“An optional EU-wide sales law is clearly the only way to solve the legal barriers small firms face when selling in the EU – so it is welcome news that this is now proposed. Currently, small businesses could have to spend thousands of pounds on legal advice to get to grips with local laws and they clearly cannot afford this. Without this, small firms could continue to just trade exclusively in the UK, something which would not support the Government’s plans for an export-led recovery. We look forward to working with Government and European institutions to help develop this.”
A quarter of FSB members trade overseas, however 14% said legal barriers discourage them to trade across borders but the EU sales law will help to fix this and reduce the barriers that cross-border trading brings.
An EU-wide sales law will also encourage small businesses to use contracts, enabling them to stand on firmer ground when asking for timely payment under the late payment directive, thereby helping to improve cash-flow.
