Amazon PAN European FBA

How the EU VAT reform impact Amazon PAN European FBA?

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How the EU VAT reform impact Amazon PAN European FBA?

Amazon pan-European FBA helps you to sell across Amazon’s European marketplaces. It’s enable to placement of your inventory closer to customers. You send your products to an Amazon fulfilment centre in Europe. Amazon then allocate your inventory for storage across our European fulfilment network in those countries. That you have enabled for inventory placement. In order to meet the anticipated future demand of customers. Amazon will distribute your inventory across the countries enabled for inventory storage at no additional cost. You can track your Pan-European FBA offers using all standard reports and tools in Seller Central.

Pan-European FBA will become active for a product only after you create an active FBA. All of the Amazon European stores listed as require on the ‘Pan-European FBA. Your Inventory’ page in your selling on Amazon account and enrol the ASIN in Pan-European FBA.

How to get start with Pan-European FBA?

  • Create an Amazon Selling Partner account and add your products to FBA.
  • List your eligible products in all required Amazon European stores.
  • Enable additional countries for Amazon to store your products.
  • Send your inventory off to your nearest fulfilment centre and let Amazon do the rest.
  • Enjoy fast delivery and local fulfilment fees for your products listed in all required Amazon stores, in the countries enabled for storage.

VAT compliance in EU

  • Storing goods in a country outside your home store country will trigger additional VAT registration and reporting obligations for your business. It is also require Intrastat and other reporting requirements. Storing goods includes you, or Amazon on your behalf, storing and moving your inventory between fulfilment centres in different European countries.
  • This means that being enrolled in the FBA program or Pan-European FBA program. Which allows Amazon to distribute your goods across European marketplaces, falls under “storing goods”. It triggers your requirement to be VAT register in the respective countries of storage. You will responsible for the collection and payment of your taxes. The filing of all relevant returns where require.
  • Some of the common actions that might trigger a VAT obligation.
  • Please note that we will share information about your transactions. Where obligate, for example if justifiably requested by governmental entities or regulatory authorities. It has to jurisdiction over Amazon.

Register for a VAT and EORI number

Unless you plan to sell FBM from the UK and US. You will need to apply for both a VAT and EORI number. An EORI number is require for all merchants selling overseas in order to import goods. Unless you’re selling a low-cost product that you believe, it will have low profit margins. Then you will need to register for VAT too.

VAT is essentially a consumption tax applied to the value of goods and services bought and sold in the EU. Unlike in the US, where tax is added near the end of a transaction, in the UK and EU, VAT taxes are incorporated into retail prices, and these VAT must be reported and sent to the government.

Pan European Countries list

Pan-European FBA allows Prime eligibility in all 8 countries with storage in one distribution warehouse. But Amazon redistributes product stock to other countries’ warehouses based on where they perceive demand will be highest.

  • UK
  • France
  • Germany
  • Spain
  • Italy
  • Poland
  • Czech Republic
  • Netherlands

What post Brexit Amazon FBA inventory storage limits will I have?

For storage limits taking effect on or after the 1st of January 2021. You get one set of storage limits in each storage type covering UK inventory. The second set of storage limits covering inventory across the EU (Germany, France, Italy, Spain and the Netherlands).