Confused about the new EFN

Hi,

Please could someone clear up something for me about selling via EFN.

As I understand it, EFN allows us to sell from the UK (where we are) into the EU without having to store stock in Amazon EU warehouses (and therefore have to register for VAT in each country). However when I look through the help documents, one of the requirements is that “Inventory for eligible offers stored in local fulfilment centres.” This seems like a contradiction to me as surely if I am storing stock in European fufilment centres, then I would need to register for VAT so might as well do FBA rather then EFN.

Have I just got this all muddled up?

Thanks for your help!