The call-off stock scheme has been around in Europe for some time already. Since this August, it has been available for Amazon sellers, too.
The call-off stock scheme is one of the simplified rules for VAT accounting which allows sellers to avoid registering for VAT in countries where their clients reside. It usually is possible under strict circumstances, but companies using the Pan-European FBA scheme can now enrol in it more easily.
Typically, a call-off stock scheme is available to sellers that ship their products to clients in other countries and have a prior agreement with them that the buyer acquires all the shipped products, and the call-off stock scheme is applied. During such a transaction, the seller must be made aware of the buyer‘s VAT code prior to shipment of the goods. If there‘s no official agreement prior to transporting the goods, the scheme cannot be used, and the Intra-European rules are applied, with the seller calculating VAT in the country of destination.
The first ones to be eligible to use Amazon‘s scheme are sellers with a German VAT code who want to expand their sales in France. In their case, call-off stock gives the opportunity to trade in France without a French VAT registration when paying local FBA taxes.
By participating in the Call-off stock, sellers allow Amazon to act as an intermediary between the seller and the final customer. For example, when a customer living in France purchases a seller‘s product, Amazon buys it from you and resells it to the customer. Such goods are marked as “Shipped and Sold by Amazon”. Anyway, in such cases, ownership of the products remains with the seller during the storage period until sale.
To be enrolled in the call-off stock, a seller must send a query to Amazon and wait until it is confirmed. The confirmation is possible if the seller has active accounts on amazon.de, amazon.fr, amazon.it or amazon.es and a valid German VAT code. The seller must also be registered for the Amazon VAT Calculation Service to activate the invoices generated by Amazon and haven‘t Place of Establishment (POE) in a country registered with the Call-off stock scheme. Jewellery and baby product sellers cannot partake in the Call-off stock scheme for now.
An alternative to the call-off stock scheme is the consignment scheme, which does not allow avoiding VAT registration in the destination country, but deems the goods as supply in a self-sale. This scheme enables selling to multiple clients.
If you have questions about the call-off stock scheme, reach out to 1stopVAT‘s experts and get your answers quickly!