A relief to sellers in Europe: Amazon is launching new FBA pilot programme!
If you are selling on Amazon and doing this in all 5 countries (UK, DE, IT, ES, FR) you are mostly aware of the difficult VAT schemes you have to resolve to have your business running legally in case you decide to enroll to PAN EU FBA program. It is easy to get lost in VAT jungle especially if you are just making your first steps as a respectful seller in EU.
Notwithstanding that one amazing news I have spotted recently. It’s a game changer and a big relief to sellers in Europe.
One of the sellers has received the following message from Amazon:
According to this email Amazon will manage all cross-border VAT requirements! I can’t wait to see this working. As stated by Amazon in the matter of sale they will purchase your product at your local offer price and then sell it to the final customer. This superb innovation will save you VAT administration costs associated to different countries. And what is mostly astonishing is that even a new starter will have a chance to be closer to his customers in all Amazon EU marketplaces.
You can always enroll into PAN EU program and hire an accountant to keep track of your VAT registrations for all 7 countries where Amazon has the warehouses. We can recommend the Simply VAT company who would be happy to help you with VAT administration. They are specializing in serving Amazon sellers.
Hello from Fulfilment by Amazon,
We’ve heard from sellers that global selling can be hard. To simplify your global selling experience, we have created a new FBA pilot programme. With this programme, you can benefit from the opportunities of additional international demand, without having to manage the complexity of international transactions. As a valued FBA seller, you are eligible for this pilot programme.
In this programme, Amazon may list your products outside Amazon.co.uk on our European websites. When we get a sale from a customer on these websites, Amazon will purchase your product at your local offer price and sell it to this customer. There are no additional fees for the pilot programme, and you will be paid like any other domestic sales transaction. Moreover, Amazon will manage all cross-border VAT requirements – you will only have your existing VAT obligations in United Kingdom, not in the foreign countries.
To learn more about this programme, visit our programme policy. In the vent that Amazon purchases your products, you agree that Amazon may issue self-billed invoices on your behalf. Please note you are responsible for keeping a record of these electronic VAT invoices. If you do not want Amazon to purchase your inventory, you can opt-out at any time by disabling “Allow Amazon to buy my inventory”.
Thank you for selling on Amazon,
Fulfilment by Amazon
Augustas Kligys is the host and creator of several popular virtual summits for Amazon sellers. The first one is European Private Label Summit, which covers a lot of important topics for those willing to grow their Amazon FBA business in European Marketplaces. The second - AMZ Seller Summit - an event, where experts shared their Amazon business optimization secrets and mindset, which helps to elevate your business to the next level. Augustas also hosts weekly DEMO MONDAYS video series, where Amazon seller tools are demoing their products.