Amazon announced the end of the Call-Off Stock (COS) Program for sellers by 1 August 2024. End of Amazon Call-Off Stock Program for Sellers Amazon has announced the termination of its Call-Off Stock (COS) Program for sellers, effective August 1, 2024. After this date, any inventory currently stored under this scheme will be sent back to the EU country where it was initially located in case the seller takes no action.

To continue storing inventory in the former COS countries, France, Germany, Italy or Spain, sellers must activate Pan-European Fulfillment by Amazon (Pan-EU FBA), involving VAT registration in relevant EU countries. This move aims to prepare for future ViDA compliance, which includes the end of call-off stock simplification, and it directly impacts on the tax compliance obligations of the sellers using COS.
Implications for Sellers

The discontinuation of the COS program introduces new compliance requirements and potential cost increases for sellers. Here are the key steps sellers need to take: • VAT registration in countries where stock is held: from a VAT compliance perspective, sellers must obtain a VAT registration number for each country where inventory is stored. This is crucial as non-compliance can result in severe penalties, including fines and back taxes. VAT registration ensures sellers adhere to local tax regulations and avoid legal complications. • Enroll in Pan-EU FBA: from a logistics perspective, to continue selling accross the EU, sellers may enroll in Amazon Pan-EU FBA program. This facilitates faster delivery and improved customer service, enhancing the overall shopping experience for customers across Europe. The Call-Off Stock program was based on a Europe-wide legislative simplification that allowed selling partners to store inventory in countries where the customer is located without needing a VAT registration number in those countries. When products arrived in a country for which the Seller had COS storage enabled, and a customer purchases that item, Amazon acquired the item from the Seller through a cross-border B2B transaction and resold it to the end customer. The termination of this program signifies a shift towards a more regulated and compliant inventory management system within the EU. The end of Amazon’s COS program represents a significant change for sellers operating in Europe. As it brings about new compliance requirements, sellers are encouraged to take proactive steps to ensure they meet all necessary requirements.