The introduction of Pan-European FBA in March 2016 opened the floodgates for UK sellers to boost sales by catering to new customers throughout all 27 countries in the European Union. Since these existing sellers in the UK already had the proper documentation and VAT registration in Europe, they were able to reap the benefits immediately. For sellers in the US, it’s not that simple as VAT requirements begin to surface.
Online sellers cannot move products in and out of the European Union without meeting certain requirements. For businesses based in the US, selling internationally on Amazon means that all VAT (“Value Added Tax”) registration must be completed the second your inventory lands in the UK or any other nation in the EU.