Amazon European Fulfilment Network (EFN): VAT issues

With the Amazon European Marketplaces Account you can list your products and manage your orders on all EU Marketplaces (UK, Germany, France, Italy and Spain) from just one local seller account.

For example say for a UK-based seller, whether the customer places the order on or on Amazon’s other European marketplace sites (e.g. or the goods will be shipped from Amazon’s UK warehouse.

The seller pays a local fulfilment fee when selling on and a cross border (EFN) fee  when selling to customers of other Amazon’s European marketplaces.  The seller would provide Amazon with its UK VAT number and then receive zero-rated listing fees services.

For UK customers of UK vat (currently 20{e68217344b855fcd608ed2c4c41f83644da7cd41ea524fbfa2ad06c632d3255d}) should be charged.  For customers of European marketplaces (.de or .fr) the VAT regime for distance selling will apply because the goods will be shipped from the UK.

Contrast this situation with that where the seller “imports” his product into a different member state and then sells it locally.  In that case local VAT must be charged.   Higher VAT rates could apply if the “importation” of goods model is employed instead of the “distance” selling model as the latter gets the benefits of the distance selling exemption thresholds