Amazon EFN Reopens between the UK and EU in 2022 

March 21, 2022 in Ecommerce Tips

In March 2022, fulfilment between the UK and EU is set to reopen via the European Fulfilment Network (EFN). The EFN enables brands who sell on Amazon Europe marketplaces to stock inventory in their local fulfilment centres to send to customers ordering on multiple Amazon EU stores. This means that supplies can be located nearer to customers and businesses can maximise control over their inventory.  

Is there a difference between Amazon EFN and FBA? 

The EFN enables sellers with an established Amazon EU account who are also already registered for Fulfilment by Amazon (FBA) to store inventory in one of Amazon’s local fulfilment centres. By doing so, sellers can fulfil orders from across Amazon’s EU marketplaces from a single inventory pool. 

Using the EFN can streamline inventory management, keeping goods local and enabling you to have control over your stock. Amazon enables FBA inventory to be listed across all EU Amazon stores using just one account. Orders would then be fulfilled from this FBA inventory and using the European Fulfilment Network. 

To use EFN you must meet a few requirements:  

  • Have access to EU and UK Seller Central accounts 
  • Have enabled FBA offers for products in both the UK and EU 
  • Have eligible inventory stored in Amazon’s local fulfilment centres 
  • Have shipping/export settings enabled – to ship between the UK and EU you will need to have EU stores enabled for export 

How can I register for the Amazon EFN program?  

Using Amazon FBA will automatically make EFN available to you in all of Amazon’s EU marketplaces, so a separate registration will not be necessary.  

There are a few key details to be aware of first:  

  • When setting up eligible offers to include for EFN, you can follow the same process on each Amazon EU marketplace as you would domestically. 
  • Amazon will always prioritise fulfilment from the nearest centre, so if you ship to both the UK and EU, domestic fulfilment fees may apply. 
  • When using FBA, if you do not hold stock within the EU, any EU orders will be fulfilled from your UK inventory.  
  • You will need to ensure your margins cover the cost of EFN and VAT, so ensure you have prepared for the range of VAT rates across the EU to account for this. 

What are the benefits of using Amazon’s EFN? 

One of the key benefits of opting into EFN is that you can effectively sell your inventory across Europe from a single store. This can be useful for businesses who do not have space to hold stock at home and need to use a fulfilment warehouse, but don’t want to ship their supplies cross border. This also means that a single VAT registration would be needed as you are storing stock in one EU member state. 

As revenue generated in the ecommerce market within the EU is projected to reach 828.3 million this year and is expected to show an annual growth rate of 13.83%, EFN could be an excellent means of accessing new customers and boost your budding brand’s exposure, while keeping the administrative burden low.  

How much does Amazon’s EFN cost? 

In 2021 Amazon introduced increased fees for their EFN service which has been viewed as a disadvantage for smaller businesses looking to expand throughout the EU. This, however, may not apply to you as EFN has no fixed fee. This will entirely depend on the storage location, type of product and the size and weight of your inventory.  

What about Pan-EU FBA? 

If you have a medium to large scale Amazon business however, meaning more sales from customers scattered across Europe, you may want to consider Pan-EU FBA. Pan-EU FBA is Amazon’s largest scale fulfilment network, enabling sellers to list on 4 Amazon marketplaces and store inventory across the EU. 

Amazon’s Pan-EU FBA service does make VAT registrations in each country where your stock is held compulsory, so this will be a necessary requirement when using this service. At we understand that expanding across Amazon’s European network can be daunting and adding multiple VAT registrations to the equation can be a challenge. That’s why we’re offering free Pan-EU FBA registrations to get your ecommerce business up and running ASAP.  

If you have any questions and Amazon EFN or FBA don’t hesitate to get in touch with our team and we can discuss your expansion plans and the compliance requirements that may apply to you.  

EFN and VAT  

Amazon have given the following guidance for EFN sellers:

For B2C sellers using EFN any sales that do not exceed EUR 150 or £135 will be accounted for by the marketplace (Amazon) and will not require you to register for VAT. This fee will be collected by Amazon from the customer at checkout.  

For B2C sales made above EUR 150 or £135, or all B2B sales, the customer will be expected to be the importer of record and will pay any import VAT and duties required. The customer will be able to see an estimate of this amount at checkout.  

EFN VAT rules are highly changeable dependent on your goods and their location at point of sale, to ensure you’re staying compliant while using this service get in touch with a member of our team who can discuss your VAT requirements.  

Get Started

At our international experts are always happy to help you navigate international VAT and are always at hand to answer your questions. If you’re unsure of your international VAT obligations, or would like to get VAT registered, fill out the form below and a member of the team will be in touch.

"*" indicates required fields

Please note that we do not offer VAT services in the country where your business is established.
Please provide us with as much information as possible so we can best direct your enquiry. For example, what products do you sell? What countries are your customers in? Where do you hold inventory? Please note: we do not manage domestic VAT registrations (the country in which your business is registered)

Recent posts

man shopping on mobile phone in front of shop window display with "black friday sale"
September 21, 2023
5 Things to Consider When Shipping Into The EU
Read More
DAC7 Digital Marketplace
August 1, 2023
Everything you need to know about DAC7 [FAQs]
Read More

Not sure where to begin?

Schedule a call with one of our VAT experts today