Amazon Pan-European Network: VAT for sellers

The seller’s products are listed in all five European marketplaces and reach a very wide audience of customers across Europe.  The sellers send their products to a Amazon fulfilment centre in one country. Using knowledge of its customer purchase trends, Amazon will then allocate the inventory across its fulfilment centres throughout Europe to meet customers’ anticipated future demand.

When customers order the seller’s products, Amazon handles the fulfilment logistics and delivery from the location closest available to the customer.  The seller needs to charge the customer the VAT rate of the country the shipment or delivery location falls in as the place of supply of goods is the location where the goods are held when the order is dispatched to the customer.

Where orders are dispatched from several locations in Amazon’s Pan-European Network, the seller will face multiple VAT registrations and Intrastat reporting requirements.

How do I find out from where the customer orders are despatched?

If the seller enables Pan-European FBA they will be able to access a Cross-Border Stock Movement Report in their Seller Central account. The report contains information pertaining to sales, returns, refunds and fulfilment centre movements that impact stock in an Amazon European fulfilment centre. Based on this report, Pan-European FBA sellers will be able to track information including sales and ASINs movement, stock departure dates and stock destination countries. This information can be used for preparation of various European VAT returns, Intrastat and other compliance requirements.

For further details of Amazon Pan-European Network VAT issues contact