EU - Amazon Ends Call-Off Stock

Amazon's Call-off stock program was designed to help businesses selling in the European Union (EU) streamline their inventory management and comply with EU VAT regulations. Under this program, sellers ship their products to Amazon's fulfillment centers in the EU target country. The goods are stored in Amazon's warehouses, ready to be called off by the buyer. 

The program's key advantage was that it allowed the seller to delay VAT registration until the goods were called off and sold to the end customer. This streamlined the process and significantly reduced the administrative burden for sellers, especially those dealing with multiple EU countries. However, on June 11, 2024, Amazon announced the end of the Call-off Stock program.

Impact of the Decision

Amazon ends its Call-Off Stock program on August 1, 2024. Until then, sellers can sell existing Call-Off Stock inventory and pay domestic FBA fees, but no additional Call-Off Stock countries can be enabled. From August 1, 2024, sellers will be charged European Fulfilment Network (EFN) fees instead of domestic FBA fees in previously enabled Call-Off Stock countries.

To prepare for this change, sellers can enable Pan-European (Pan-EU) FBA by registering for a VAT registration number (VRN) in the countries where they have been using Call-Off Stock. If Pan-EU FBA through VRN is not enabled by August 1, 2024, Amazon will automatically return the Call-Off Stock inventory to the original inbound country by August 31, 2024.

Recognizing the time required to obtain VRNs, Amazon offers reimbursements. Sellers who enable Pan-EU FBA through VRN by November 1, 2024, will receive EUR 540 per country to cover VRN acquisition and tax filing costs for 12 months in Germany, France, Italy, or Spain. Additionally, those who enable Pan-EU FBA between August 1 and November 1, 2024, will be reimbursed for the fee difference between EFN and domestic FBA fees for products previously enrolled in Call-Off Stock.

Eligible sellers will be notified via email and will receive detailed reimbursement terms. By enabling Pan-EU FBA through VRN, sellers will continue to pay domestic FBA fees, send inventory to domestic fulfillment centers, and manage direct sales to customers. If Pan-EU FBA through VRN is not enabled, inventory movements will be reported in the Amazon VAT Transactions Report.

Conclusion

The end of Amazon's Call-off stock pressures sellers to adapt to new VAT registration requirements and inventory management challenges. The timeframe for adjusting to the new situation is short, and sellers have additional issues to consider. 

Understanding the situation in which they put sellers, Amazon advised consulting tax advisors in case VAT requirements need to be clarified.

Source: Amazon Seller Forum