EFN vs. Pan-EU FBA using MCI
Hi all,
Following on from the re-launch of EFN in March 2022, just wondering if anyone has a view on whether it’s more cost effective to sell via EFN or if it would be better to go via Pan-EU FBA and then use MCI to store inventory in one country (e.g. DE), so only be liable for DE VAT?
Which one is more cost competitive/makes the mot sense for us sellers?
TIA!
12 replies
Seller_esvgLzKXw2YAl
Well, I think the only person who judge whether or not it’s worth it, is yourself, or possibly your accountant.
One thing though, you cannot use PANEU in only one country.
If you use that, it is for all EU countries.
Whether or not it’s actually worth it or not, is going to depend on a lot of factors.
How much your selling/profiting. What the associated costs are etc.
An answer for me, would in all likelihood, be completely different to yourself.
Seller_JeSBYj1XH8qlB
I understand pan-eu. I can must become VAT registered in two of the four countries (DE FR IT ES) but I can send stock to just one. Amazon will then move that stock free of charge to any of the others that I am VAT registered in. Where stock is held we pay local fees for fulfilment and where it is not cross border fees.
Sorry I have never looked into EFN and struggling to understand how it differs?
Seller_qqCKaiyZvp4Rc
So the idea for EFN is that you don’t need to do any extra tax work and the stock is stored in just one country
The fees are very high and unless your items can bare the extra cost i would consider pan EU
Another advantage of pan EU is delivery is likely to be faster for the customer as stock is already in the EU and doesn’t have to cross a customs border
Seller_1LY9DSCyKKiuF
Thanks all for the feedback, interesting read!
Further question, if you opt for Pan-EU but limited inventory storage to Germany only, my understanding is that you would pay VAT on sales within and outside of Germany because inventory is being stored there and items are being dispatched from there. My question is whether you would also pay VAT within the receiving country (e.g. France), so double VAT in effect?
Thanks in advance!
Seller_7oVrzvg1FiUoN
Hi Folks,
Any update on this from your sides a few months later? How is everyone getting on with it?
