What are the consequences regarding VAT with an intra-community transfer of my products/stock when using Fulfillment by Amazon (FBA)?

Holding stock in an Amazon fulfillment centre

amavat Europe have many marketplace sellers who are approached by Amazon to put their stock in one of Amazon’s European Fulfillment (FBA) centre’s, of which they have 7 country FBA centre’s in 7 countries around Europe. Please click here.

It makes commercial sense by giving you the competitive edge by ensuring cheaper and quicker delivery to your EU customers. However, be warned, by moving your stock to another EU country, you have now created a taxable supply and will have to register in that country immediately – there are no thresholds to exceed.

The EU tax authorities have been extremely pro-active in approaching Amazon for sales data, for example, UK companies holding stock at FBA centre’s. Please be aware of your exposure as the tax authorities communicate with each other and share data.