Many European Sellers have a foothold in Amazon's FBA European Fulfillment Network (EFN). EFN allows you to store your products in one country. Therefore, while exploring business trends in European marketplaces, you can minimize costs associated with VAT registration, filing, and regulatory compliance.
If you sell in a marketplace other than the one country where your products are stored, you do not need to register in another country until you exceed the stipulated sales threshold. This way you can test the European market without worrying about registering for VAT in multiple countries at first. If sales grow as your business grows, we recommend that you consider fulfillment options such as Pan-European FBA
* Due to the UK’s withdrawal of the EU, there are some changes to the above. Read more
A Seller says “The reason why we moved to Pan-European FBA is that it has the advantages of reducing shipping time and shipping costs. And with the growth of the business, we were approaching the sales rate that requires VAT registration in all 7 countries. After transitioning to Pan-European FBA, we saw a sales increase that justified the upfront spend on additional VAT registrations.”
Through Pan-European FBA, Amazon moves your inventory among seven European countries based on customer demand. This means the Seller must be VAT registered in all 7 countries.