EFN - where do returns end up?
Hi all,
Just been trying to figure out where customer returns actually get returned to if using EFN from UK fulfilment centre to Germany.
I have read that some sellers have had their account banned as they were not VAT registered in Germany/EU country despite using EFN (no VAT registration needed for EU according to AMZ) as Amazon sent customer returns back to local (German/other EU) fulfilment centres and storing it there for future orders if resellable - which then somehow triggered a VAT registry requirement.
Are there any updates on this since the new EFN has started last year? Is it still risky to use EFN without being VAT registered in the EU country you want to sell in?
Thanks for your responses in advance! 
EFN - where do returns end up?
Hi all,
Just been trying to figure out where customer returns actually get returned to if using EFN from UK fulfilment centre to Germany.
I have read that some sellers have had their account banned as they were not VAT registered in Germany/EU country despite using EFN (no VAT registration needed for EU according to AMZ) as Amazon sent customer returns back to local (German/other EU) fulfilment centres and storing it there for future orders if resellable - which then somehow triggered a VAT registry requirement.
Are there any updates on this since the new EFN has started last year? Is it still risky to use EFN without being VAT registered in the EU country you want to sell in?
Thanks for your responses in advance!
Seller_esvgLzKXw2YAl
EFN CAN trigger vat responsibility in the EU countries.
No matter what Amazon may/may not say about storage of goods being turned off.
They make mistakes and stock does get returned to the EU warehouses.
It can be a useful way of testing the market as it is an expensive way to sell into the EU sites.
But even if it does trigger VAT, if you don’t plan to continue sales, it won’t be an issue.
And obviously if you are looking to find out whether it’s worth selling directly, it’s an easy way to find out, and you will end up registering anyway.
I did get caught with Germany and cannot use FBA there until I register for VAT.
Though I can still use EFN now, to complete orders over there.
0 replies
Seller_BS5lg2keRs2QO
They are supposed to return to the home marketplace, but will likely pass through an EU Amazon location. Sometimes they get stuck there which is what seemed to cause issues for some sellers.
I use FBA Export rather than EFN and did get one item stuck in Germany, but it caused no issues for me. EFN is much better for generating EU sales though.
Seller_7VbclcPFFRTnc
I don’t do EFN or pan eu or export and still had 2 stray returns to Germany so you can’t guarantee where stock will end up at all unfortunately
It didn’t trigger vat though …
Seller_esvgLzKXw2YAl
EFN CAN trigger vat responsibility in the EU countries.
No matter what Amazon may/may not say about storage of goods being turned off.
They make mistakes and stock does get returned to the EU warehouses.
It can be a useful way of testing the market as it is an expensive way to sell into the EU sites.
But even if it does trigger VAT, if you don’t plan to continue sales, it won’t be an issue.
And obviously if you are looking to find out whether it’s worth selling directly, it’s an easy way to find out, and you will end up registering anyway.
I did get caught with Germany and cannot use FBA there until I register for VAT.
Though I can still use EFN now, to complete orders over there.
