Is there any point to registering for VAT in order to store inventory in that country if you don't have to now that European Fulfilment Network (EFN) between the UK and the EU is available?
I have registered for a German VAT in order in order to store items in Germany and take advantage of lower fulfilment fees and quicker dispatch to customers. Now the Amazon European Fulfilment Network between the UK and the EU seems to allow you to sell goods in any country in the EU and Amazon will store it in another countries warehouse without you having to have a VAT number so you gain the advantage of lower fulfilment fees and the customer gets there product quicker.
Am I missing something or is this the case? Is there any advantage for me having a German VAT number only to store my goods in German warehouses for lower fulfilment fees? Seems like Amazon will do this for me and class it as a cross border sale. Am am tempted to de-register as it doesn’t seem worth it for me right now.
Seller_7VbclcPFFRTnc
You need to weigh up the costs of higher efn fees compared to accountants fees etc
When did you register though as I believe Germany has a minimum term of 2 years - and amazon vat services will also presumably have a minimum term
Not all asins can be enrolled in EFN either
They won’t store stock, they will take a unit from uk warehouse and send it straight to the buyer in EU to their address - not an fba warehouse
Seller_DROodOAYHftnc
I don’t sell overseas, or do FBA, so what I say may be totally incorrect !
I am sure I have read here that if you have registered for German VAT that you cannot de-register for 2 years (I think )
Also, I believe that with EFN the items are stored in UK but will be shipped overseas.
Seller_esvgLzKXw2YAl
There are lots of reasons to do so, not least is the fact that FBA fees are considerably cheaper.
But as I advised in your other thread, you really need to speak to your accountant about this. Registering for VAT in Germany, but not the UK, is going to cost you a lot of profit.
