FBA consignment / call-off stock placement: VAT issues

Sellers send their Pan-European FBA ASINs to Amazon European fulfilment centre(s) in the country of their choice. Amazon will then automatically allocate stock to other European fulfilment centres based on proximity to anticipated demand to speed up deliveries to customers. If there is a fluctuation in market demand, Amazon will redirect stock at no extra cost to the seller. This helps to ensure stock is as close to customers as possible. Sellers can still keep track of orders and stock availability without the need to plan and shuffle stock manually, or pay per unit cross-border fulfilment fees. Amazon handles stock management and delivery logistics, allowing the seller to save valuable time and focus on growing their business.

However, stock placements can trigger VAT issues pertaining to “consignment” and “call-off” stocks.  For further information please contact RKG Consulting, Chartered Tax Advisers.