In August 2026, Amazon expanded its Amazon Warehousing & Distribution (AWD) service to Europe. For sellers using Amazon AWD Europe, quite a bit is changing — including on the VAT side. As soon as your inventory is stored in another European country, you may also need a VAT registration there. In this article, we explain what AWD is, how it differs from FBA, and what it means for your VAT obligations across Europe.
What is Amazon AWD?
Amazon Warehousing & Distribution is a bulk storage service from Amazon. You send large quantities of inventory to an AWD warehouse, and Amazon automatically ensures the right products are forwarded to FBA fulfillment centers at the right time.
This solves a common problem: FBA warehouses have limited storage capacity and are designed for products that move quickly. AWD acts as a buffer in between, intended for larger quantities of inventory you want to keep in reserve.
What is the Difference Between Amazon AWD and FBA?
FBA stands for Fulfillment by Amazon. You send your products to an FBA warehouse, and Amazon picks, packs, and ships them to the end customer. FBA is focused on the final step in the fulfillment process.
AWD sits one step earlier in the chain. It is a bulk storage solution for larger inventories. The combination of AWD and FBA ensures your products are always available, without you having to manually replenish stock constantly.
The difference in a nutshell:
- FBA: storage close to the customer, focused on fast delivery
- AWD: bulk storage further up the chain, focused on inventory management
- AWD automatically replenishes FBA
Amazon AWD Europe: Which Countries?
From August 2026, Amazon AWD Europe is available in Germany, France, Italy, Spain, and the United Kingdom. These are the five countries where Amazon is rolling out the service first.
The expectation is that AWD will expand further to other European markets in the coming years. For now, it is primarily the larger Amazon markets that benefit first.
What Does This Mean for Your VAT Registration?
This is where things get more complicated for many sellers. As soon as your inventory is physically located in a European country, you are generally VAT-liable there. That applies to FBA inventory, but also to AWD inventory.
Suppose Amazon stores your inventory via AWD in Germany and then automatically forwards it to an FBA fulfillment center in France. In that case, you have inventory in two countries at the same time. You then need a German VAT number and a French VAT number, and you must file VAT returns in both countries.
This is something many Amazon sellers underestimate. The automatic inventory distribution of AWD is convenient, but it also means you have less control over which country your goods are in at any given moment.
OSS is not a solution here. The OSS (One Stop Shop) system is designed for cross-border B2C sales, not for VAT obligations that arise from holding inventory in a country.
What Do You Need to Arrange as a Seller?
It is wise to map out in advance which countries Amazon may store your AWD inventory in. Check this in your Seller Central settings or ask Amazon directly. Based on that, you will know in which countries you need a VAT registration.
Not sure whether your situation is properly arranged? Feel free to reach out to Joke and the VAT team at Staxxer. They will help you get your European VAT registrations and filings in order, so you can focus on growing your business.
