EFN program VS Pan-European program
Can anyone explain the real difference and what does this mean in terms of VAT obligations?
My understanding is that enrolling to the Pan program basically means allowing amazon to transfer my inventory all over Europe and fulfill order from local fulfillment centers. But does that mean I will then need to pay VAT on inventory that enters new countries just like I was paying 20% of inventory+shipping value when entering the UK?
Is it worth it? what are your thoughts?
You are correct, you will need to register for VAT in every country that Amazon will send your inventory to, so check where Amazon have warehouses.. This also means increased reporting and increased accountancy fees.. You may be able to offer better pricing, because you’re it paying the increased fulfilment fees, but are paying more accountant fees..
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