Amazon terminates its Call-off-Stock program! The changes are coming from August 1, 2024!

Contents
  1. What is the Amazon Call-Off-Stock program?
  2. End of Amazon Call-Off-Stock – From when?
  3. What does the end of Amazon Call-Off-Stock mean for sellers?
  4. Tax obligations for sellers using Amazon Call-Off-Stock
  5. End of Amazon Call-Off-Stock program – Summary
  • Last update:
  • Published: 22.07.2024
  • Read in: 3 min

The Amazon Call-off-Stock program was undoubtedly innovative. It allowed goods to be stored in another European Union country without the need for VAT registration in that country. However, its end is approaching, and users of Amazon Call-off-Stock will face changes.

What is the Amazon Call-Off-Stock program?

The Amazon Call-Off-Stock program was based on regulations concerning consignment shipments and call-off-stock warehouses. This allowed sellers to store their goods in other countries—France, Spain, Germany, and Italy—without the need for VAT registration and filing declarations there. You can read more about Amazon Call-Off-Stock in our article – What is the Call-Off Stock service on Amazon?. We also encourage you to read the text What is a consignment warehouse?.

End of Amazon Call-Off-Stock – From when?

As of August 1, 2024, Amazon will suspend the Call-Off-Stock program, which will have consequences for its users. It should be noted that new participants can no longer join the program.

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What does the end of Amazon Call-Off-Stock mean for sellers?

Program users do not have much time to decide, but this will be necessary. Sellers who store their goods in Amazon warehouses under the Amazon COS program and wish to continue using the American giant’s warehouse space must provide VAT registration numbers in the countries where the warehouses are located. Furthermore, due to the termination of the Call-Off-Stock program, they must activate the Amazon Pan-European FBA program by August 1. Otherwise, stored goods will be returned to their country of origin.

However, if sellers decide to take the aforementioned steps, they must be aware that domestic delivery costs will now be in line with Amazon European Logistics Network (Amazon ELN) rates in the Pan-EU program.

Tax obligations for sellers using Amazon Call-Off-Stock

If a seller wants to continue using Amazon’s warehouses, then, as mentioned above, they must obtain VAT numbers in the storage countries before August 1, 2024. If you need support in this aspect, schedule a consultation and delegate VAT registration to our specialists!

In addition to VAT registration, it will also be necessary to submit a declaration at the end of the calendar year regarding unsold goods and pay the due tax. It is worth noting that these obligations also include keeping VAT records and regularly submitting VAT declarations in the countries where the goods are stored.

If a seller does not intend to continue cooperation with Amazon regarding warehousing after the end of the COS program and plans to withdraw their goods, they will be obliged to submit appropriate declarations, covering the period from the date the goods entered the country until the day they leave.

End of Amazon Call-Off-Stock program – Summary

The termination of the Call-Off-Stock program by Amazon is undoubtedly a significant change for sellers on the world’s largest marketplace who store their goods with the American giant under this program. This change requires a quick response in the form of deciding on VAT registration and activating the Pan-EU FBA program or opting out of registration and withdrawing their goods to the country of origin.

In both cases, key factors are time and compliance with regulations, as non-compliance or late fulfillment of obligations can result in severe penalties.

If you sell or plan to sell on Amazon and need support in VAT registration or filing VAT declarations, you can delegate these processes to our specialists. Simply schedule a consultation and specify your challenges, and our VAT Compliance team will take care of the rest!

Michał Doruch Michał od ponad 10 lat zajmuje się m.in. rozliczaniem, rejestracjami i składaniem deklaracji VAT w krajach Unii Europejskiej oraz Wielkiej Brytanii. To jednak nie wszystko! W bagażu swoich doświadczeń ma także kwestie związane z VAT OSS, raportowanie Intrastat i bezpośrednie wsparcie klientów. Z Taxology Michał jest związany od marca 2021 roku.