Amazon will cancel its popular call-off stock program on 1st August 2024, giving sellers only two months notice via email. This EU VAT scheme allows a customer to store goods in another EU country at their customers address for up-to 12 months allowing them to “call off” and purchase the stock whenever needed instead of buying up-front. Unlike other EU VAT rules, this scheme exempts sellers from registering in the country where the goods are stored.
The scheme is widely used on B2B transactions across Europe but became available to Amazon sellers when selling B2C thanks to the July 2021 VAT on e-commerce changes which made marketplaces the deemed seller for non-EU companies, allowing Amazon businesses to store goods in multiple EU countries under the call-off stock arrangement without needing additional VAT numbers.
Why is call-off stock ending?
Amazon has not provided an official reason for ending the call-off stock arrangement, but it is likely due to the upcoming VAT in the Digital Age (ViDA) changes, which will abolish the scheme. Although the official EU deadline is later, Amazon is choosing to end the arrangement early.
Starting July 1, 2027, no new call-off stock arrangements can be used. Any goods transferred before this date will cease to qualify by June 30, 2028.
Problems for Sellers
Sellers will need to register for VAT in each country where they hold call-off stock, a process that can take up to 12 weeks in some countries. Amazon will return all stock to the source country by August 1, 2024, and sellers will incur European Fulfilment Network fees instead of the cheaper domestic FBA fees.
This information was published in full on the Amazon call-off stock seller page which you can read here. For more help with your VAT compliance feel free to get in touch with our team or book a consulation.
