VAT Expert in Europe

Selling in Europe with Incoterm DDP. Eurofiscalis handle your VAT registration & declarations | I want to learn more

VAT Expert in Europe
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VAT Expert in Europe

Selling in Europe with Incoterm DDP. Eurofiscalis handle your VAT registration & declarations | I want to learn more

Selling in Europe with Incoterm DDP.

Eurofiscalis handle your VAT registration & declarations

I want to learn more

Amazon VAT

Stopping Amazon's C.O.S Program: Everything You Need to Know

Amazon recently announced the cessation of its C.O.S (Call-Of Stock) program effective August 1, 2024, a crucial service for many sellers. Amazon’s C.O.S program allows sellers to store and sell in multiple European countries without having to register for VAT in those countries. The C.O.S program combines all the advantages of the Amazon FBA program without the hassle of managing taxes. In this article, we explore the impacts on sellers and possible alternatives. Discover the implications of the end of the Amazon C.O.S program and your VAT obligations from August 1.

Table of Content

What is Amazon's C.O.S Program?

Amazon’s C.O.S (Call-Of Stock) program was a revolutionary logistics initiative for sellers looking to expand their presence in Europe.

 

The C.O.S program allowed sellers to store their products in Amazon’s European warehouses. This facilitated access to key European markets such as Germany, France, Italy, and Spain with a single VAT number, simplifying administrative and logistical management. This program combined all the benefits of the Fulfillment By Amazon (FBA) program, which are:

How does Amazon's C.O.S program work?

Amazon relied on the VAT rules for consignment or call-off stock to simplify life for its sellers.

What is consignment or call-off stock?

Consignment stock is a storage strategy that involves storing your products in your client’s warehouses, which are taken when a sale is made. Under Amazon’s C.O.S program, it works as follows:

Let’s see why this program offers a significant advantage to Amazon sellers.

Advantages of the C.O.S Program

The advantage of Amazon’s C.O.S program is that it greatly simplifies sellers’ tax obligations. Normally, Amazon sellers are required to register for VAT in the country of storage, collect VAT, and file VAT returns in that country. With consignment stock, you make an intracommunity B2B sale, which means:

The tax and reporting obligations of the C.O.S program are:

Once the product is sold by Amazon, you must:

What are the consequences of stopping the C.O.S program for Amazon sellers?

The end of Amazon’s C.O.S program involves managing new reporting and tax obligations for Amazon sellers.

VAT obligations with Amazon's FBA program

If you switch to the Amazon FBA program, you will need to register for VAT in all the countries where you store your products. The cost of a VAT registration is between €700 and €1000 per country.

 

VAT registration requires you to file VAT returns in all countries where you hold a VAT number.

What to declare on a local VAT return?

You must declare all so-called local sales, i.e., sales where your product is delivered in the same country as that of storage.

 

For example: My French company uses the Amazon FBA program and stores its products in Germany. In this case, my obligations are:

Continue to grow your revenue in Europe with Amazon FBA

The end of the C.O.S program does not mean an increase in administrative and tax burdens. Entrust your tax obligations to our experts and focus on growing your business. Click here to book your free consultation with a specialized tax advisor and find out how to simplify your procedures today!

Business developer at Eurofiscalis, my goal is to simplify and popularize VAT rules for e-traders and companies exporting internationally. I know how complex and tedious it can be, and I am convinced that my experience and knowledge can help companies understand and comply with the current tax regulations.

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