VAT and stocks at an Amazon warehouse

If you are selling goods to consumers via Fulfilment by Amazon (‘FBA’), then you may be considering holding stocks in their foreign fulfillment warehouses to help boost foreign trade and reduce delivery times.  Below is brief guide to the EU VAT implications and potential requirement to VAT register your company in country where the foreign warehouse is located.

EU VAT rules on Amazon warehousing

You may already be familiar with the distance selling VAT registration thresholds if you are selling from your home country to other EU states.  If you now decide to locate stocks at a foreign Amazon warehouse prior to making any sales, then the implications are:

  • You will need to immediately VAT register in the country of the warehouse.
  • You cannot rely on the VAT registration threshold.  This is because the EU tax authorities will want you to report the movement of your goods from your home country to the foreign Amazon fulfillment center.
  • You can then start charging local VAT on sales to consumers in the country of the fulfillment center.
  • If you start selling goods from the foreign warehouse to customers in other EU countries, the usual distance selling rules for FBA sellers will apply.