EFN Returns, where do they go?
Hi Amazon and fellow forum members,
I note the the European Fulfillment Network is reopening from March, which is good news.
I would like to use this service to sell goods from my UK Stock to DE, FR, IT and ES.
However I am concerned about returns and potential VAT registration implications.
(Note my small UK business is below the UK VAT threshold so not VAT registered in the UK)
So lets say I sell a product to a German customer from my UK inventory and that customer in Germany decides to return the product.
Where does that return go?
- Back to the UK warehouse?
- To a local warehouse in Germany?
If it is to a local German warehouse I am now storing goods in Germany and should be registering for VAT in Germany, something I certainly do not want to do in Germany or any other European country, for that matter.
I cannot find any definitive information on Seller Central that answers this question.
Can Amazon please clarify for the record?
If my returns go back to the UK I will be delighted to start using the new EFN.
Thanks in advance for the help.
George
17 replies
Seller_PUgTge8LPB8FY
Even if they did, I personally wouldn’t trust the information.
In the good old days before Brexit, there were reports of returns going to countries in which the seller wasn’t VAT registered, leading to the sort of problems you’ve already anticipated.
In the end, you’ll have to decide whether this is a risk you’re prepared to take.
Seller_BS5lg2keRs2QO
From the FAQ:
“Where are the items going to be returned?
The items will be sent to the source store”
I haven’t looked too much at the new guidance, but i believe under the “old” EFN goods that were temporarily stored outside of the UK weren’t supposed to attract VAT as they were “passing through” - there was likely a more accounty term.
Seller_ae51e0CJoHqCX
I will attempt to address your points from a logical point of view but as we all know, what Amazon says happens and what happens in practice are 2 different things.
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Back to UK ware house? Remember there is a significant difference between EFN and pan EU. If EFN then it would have to go back to its original destination due to the way it has been treated with VAT and how this aspect has been calculated.
If a customer receives the goods direct from the UK, then they have to go back to the point of supply as your goods are not free to travel around Europe, only to the person that has made the purchase, the likely outcome is that it will end up being a returnless refund at your cost. -
To a local warehouse in Germany? Only if it is Pan EU and you are registered for VAT in Germany. If not I don’t see how they could stay there because once the item has been returned the VAT has to be refunded as well and that opens up a whole new can of worms.
Amazon cannot clarify this because generally know less about this than what I do and I don’t know the answer or which way they are going to turn. They know how it should work in theory but it just doesn’t tie up to what will happen in practice.
" If my returns go back to the UK I will be delighted" It depends on the value of the goods. They will either be returned to the UK at considerable costs to you, or they will be given returnless refunds. You could even end up with a destroy request at your cost or donated to charity. All possibilities at this stage.
