Sell more for less VAT costs.
Are you a new EU Amazon seller or thinking about extending your sales into the European Union? Then this blog is for you!
The way you set-up your Amazon EU Seller account can have massive implications on your VAT obligations.
Amazon provides three fulfilment options on Europe through their fulfilment centres. The first is EFN or European Fulfilment Network, the second is MCI or Multi-Country Inventory and the third, Pan European FBA.
EFN allows you to be VAT registered in one EU country where you store your goods and distribute products to all EU member countries. You’ll also need to be registered in the EU’s One-Stop-Shop VAT programme. VAT services for this programme would typically costs £2,000 per year.
MCI allows you to be VAT registered in two to five EU countries where you store your goods and distribute products to all EU member countries. You’ll also need to be registered in the EU’s One-Stop-Shop VAT programme. VAT services for this programme would typically cost between £3,000 and £7,000 per year.
PAN European FBA requires you to be VAT registered in six to seven EU countries where Amazon stores your goods in their fulfilment centres and distribute products to all EU member countries. You’ll also need to be registered in the EU’s One-Stop-Shop VAT programme. VAT services for this programme would typically cost between £7,000 and £9,000 per year.
As you can see, VAT service costs vary. We typically recommend sellers who are just starting to sell in the EU to use Amazon’s EFN to ‘test the waters’, then reassess after a year to see if Amazon’s MCI or Pan European FBA would be better based on product sales.
If you have additional questions on your Amazon EU VAT obligations contact us on +44 (0) 208-004-1160 in the UK, ++1 (714) 782-7000 in the USA or email us at query@MyVATdirect.com.
About My VAT Direct Ltd
My VAT Direct is a bespoke VAT registration, fiscal representation, calculation and filing service specifically designed to assist Amazon Sellers and e-commerce merchants who desire the benefits of cross-market selling without the worry of tax compliance in foreign markets.
My VAT Direct is comprised of knowledgeable and experienced tax experts, who for 10+ years have helped e-commerce sellers enjoy the selling opportunities a mass market can provide.
About SMBE Direct Ltd
My VAT Direct is a subsidiary of SMBE Direct, a world reaching B2B and B2C business services conglomerate, giving rise to exceptionally talented and well-experienced professionals organised into business units, that provide direct services to SMEs and enterprise level businesses, whereby increasing their brand awareness and sales.