Are you Selling on Amazon and Storing Goods in their Warehouses?

Amazon announced they are ending the Call-Off Stock (COS) Program for sellers by August 2024. This represents a significant change for U.S. Amazon sellers operating in Europe.

After August 1, 2024, any inventory currently stored under this scheme will be sent back to the EU country where it was initially located if seller takes no action. This brings new VAT compliance requirements; sellers should take proactive steps to ensure they meet all necessary requirements.

If you are storing inventory in France, Germany, Italy or Spain, it is extremely important to call us regarding VAT reporting. Non-compliance can result in severe VAT penalties, including fines and back taxes.

It is crucial for a U.S. company to set up their Amazon sales account and distribution correctly (Pan-European Fulfillment vs other Amazon fulfillment options). As a general rule, sellers must obtain a VAT registration number for each country where inventory is stored and report to all of those countries. Let’s discuss your best options to avoid costly mistakes.

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