Two workers in a warehouse surrounded by stock

Amazon’s Call-off Stock Program is Ending

July 11, 2024 in Amazon, European VAT, Marketplaces

Call-off stock is a common tax arrangement for business-to-business transactions in the EU. Amazon has been using it as a ‘quick fix’ for Seller’s VAT registrations. Amazon’s Call-off stock program enabled sellers to store their goods closer to their EU customers whilst reducing the number of VAT registrations needed to make that happen. 

Amazon is now ending the program. After August 1st, Amazon will move stock in the program back to the EU country where they were first imported. For example, when you decided to use Amazon’s fulfilment service, your goods first landed in the EU in France. From there, Amazon distributed them to their warehouses across Europe. Now, they’ll be returned to France. 

Amazon is asking sellers to consider their fulfilment options as the program comes to an end. To help you decide what to do next, we’ve rounded up some options to prepare you for the change.  

What is Call-off Stock? 

Under the Call-off Stock Program, Amazon sellers only need to register for VAT in the EU country where their goods are first imported (typically Germany). If you meet the program requirements you can hold inventory in multiple countries without having to register in each Member State. Additionally, you are eligible for domestic FBA fees. 

Whilst Call-off Stock reduces your VAT obligations, it adds more reporting and rules. For example, you can only hold the stock in the additional countries for so long without selling them. 

Call-off Stock ending on Amazon  

As of the 1st of August 2024, Amazon will be cancelling the Call-off Stock scheme in their fulfilment centres. When the program ends, Amazon will apply European Fulfilment Network fees to any Call-off Stock enabled countries. These fees are higher than the domestic FBA fees.  

If you take no action within your Seller Central account by 1st August, Amazon will move your goods back to the EU country where the inventory was originally imported.

Solutions and Alternatives to Call-off Stock 

So what are your options now that the program’s ending? Well, as a seller you have a few alternatives, but each option will have different VAT requirements.  

Distance selling from an EU member state 

On August 1st, Amazon will move your goods back to the country where they were first imported into the EU. They will store and fulfil cross-border from there when a customer in a different member state places an order. European Fulfilment Network FBA fees will apply.  

You should already have a VAT registration in this original country. You won’t need to register anywhere else unless:

  • Your business is established in the EU
  • You’re selling on your own website

Enable Pan-EU fulfilment  

If your sales increased while using Call-off Stock, you might want to keep your goods where they are. You can enable the Pan-EU program to get access to key markets such as Germany, France, Italy and Spain. Plus, the Pan-EU FBA fees are some of the cheapest Amazon offers. 

If you opt for the Pan-EU fulfilment program, you’ll need to have VAT registrations in each country you’re fulfilling from. The time it takes to get these in place varies by country but can take as long as 12 weeks. 

Amazon has offered EUR 540 reimbursement on fees per country to sellers who sign up to Pan-EU FBA after the Call-off Stock program is cancelled. The deadline for the reimbursement is 1st November 2024, so now’s a great time to get started. Log in to Seller Central to find out more.  

Use multi-country fulfilment to select specific countries 

Multi-country inventory allows you to select the countries you want to distribute your goods from. You can choose which Amazon fulfilment centres in the EU you want to use to access your target market. For example, if your target audience is in Italy and Spain, you can opt to fulfil from those countries directly. Doing so gives your customers access to Prime shipping on their orders, all under FBA fees.  

Under this system, you’ll need a VAT registration in each country where you’re holding stock. Make sure to get your registrations before you move your inventory to avoid any disruptions to your selling account. 

What to do now 

It’s OK not to know immediately which option is best for your business. There’s also potential in this change for your business to explore new market opportunities. To make things a little clearer, we’ve partnered with eVenturing to show you the market opportunities unique to your business and products. Their opportunity assessment will lay out your options moving forward. 

If you’re confident you know where your ecommerce business is going from here, speak to one of our experts to get your registrations underway. We’re here to make navigating from Call-off Stock to your next solution simple. 

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