Written by Ricarda Eichler, Journalist and Author for OHN
European online sellers are increasingly reaching customers across borders – with Amazon’s fulfillment programs acting as the backbone of that growth. To speed up deliveries and reduce storage costs, Amazon sellers can choose between the Pan-European (Pan-EU) and the Central Eastern Europe (CEE) Programs.
The logistics advantages are clear. But every program comes with tax implications. This article explores the benefits of the CEE Program and how to prepare for its tax requirements.
What Is the Amazon CEE Program?
The Central Eastern Europe Program (CEE) is part of Amazon’s Fulfillment by Amazon (FBA) network. Instead of distributing goods across all of Europe, you ship to a German fulfillment center. Amazon may then move your stock internally to warehouses in Poland and the Czech Republic.
The advantages:
- Lower storage and shipping costs (Amazon estimates savings of about €0.26 per unit)
- Fast delivery into Germany and neighboring markets
- Avoidance of “penalty fees” which Amazon otherwise charges when sellers refuse to use warehouses in Poland or the Czech Republic
If you’re unsure which FBA program is the right fit for your brand, here are the main differentiating factors:
| Feature | Amazon CEE Program | Pan-European FBA |
| Warehouses | Germany, Poland, Czech Republic | Multiple EU countries (DE, FR, IT, ES, NL etc.) |
| How It Works | Ship to a German warehouse; Amazon redistributes to PL & CZ | Amazon automatically stores goods in all participating EU countries |
| VAT Registration | Required in Poland & Czech Republic | Required in all storage countries |
| OSS Use | OSS for cross-border B2C sales; still need local VAT filings in PL & CZ | OSS for cross-border B2C sales; still need local VAT filings in all participating countries |
| Advantages | Lower costs, simpler compliance, fewer VAT registrations | EU-wide Prime coverage, faster delivery in more countries |
| Disadvantages | Limited EU reach, two extra VAT registrations still required | High compliance complexity, multiple local filings |
| Best For | Sellers focused on Germany & neighbors |
Taxdoo, a Hamburg-based service provider for VAT and compliance automation, regularly advises Amazon sellers on cross-border tax issues and knows all about the pros and cons of both programs. As Roger Gothmann from Taxdoo explains: “CEE is the leaner and less complex alternative to Pan-European FBA. While Pan-EU involves VAT registrations in all participating countries, CEE only requires additional registrations in Poland and the Czech Republic. That reduces bureaucracy, simplifies compliance, and cuts storage costs.”
Hence, for smaller volumes or testing out new products, CEE can be the ideal entry point.
VAT Implications: What You Must Know
Many sellers believe that the One-Stop-Shop-System (OSS) covers all of their tax-concerns. The System, however, was specifically designed for B2C cross-boarder sales. When storing goods in warehouses within a certain market, you have to consider sales from within said market too, though.
Those sales are technically not cross-border-sales, but local ones that trigger tax obligations. As Gothmann warns: “A common mistake is assuming OSS covers everything. It doesn’t. If you store goods in Poland or the Czech Republic, those movements must still be reported locally.”
The golden rule is: if Amazon stores your goods in Poland or the Czech Republic, you must register for VAT there.
This applies:
- Immediately upon storage, regardless of sales volume
- To both EU sellers and non-EU sellers (including UK businesses post-Brexit)
Once your brand is registered for local VAT ID, you must file regular VAT returns and, depending on your trade volume, may also need to submit Intrastat reports or recapitulative statements. Any sales to local customers must always be declared through the local VAT system.
How to get started…
When preparing for the Amazon CEE program, timing and organization are crucial. Sellers should begin the registration process for VAT IDs in Poland and the Czech Republic well in advance – ideally several months before activating the program—to avoid delays. It is also important to set up processes for filings, documentation, translations, and compliance checks, which soon become routine.
Finally, the CEE program works best when approached as a long-term logistics strategy rather than a short-term fix, as its benefits unfold over time once the structure is firmly in place. “CEE pays off most when sellers see it as a long-term part of their logistics. If you only test it short term, you often miss the full cost and speed benefits,” says Gothmann.
…and how not to fail
A good tool for starters is the free Taxdoo CEE Checklist. It offers brands an extensive tick-off list of all aspects that need consideration and highlights additional steps to stay compliant and efficient:
- Ensure ERP and WMS systems properly track cross-border flows.
- Keep accurate transaction records to prepare for audits.
- Set up a tax calendar with all filing deadlines.
- Use automation to prevent errors, double-reporting, or missed deadlines.
The right compliance partner can take much of this burden off your shoulders. Taxdoo, for example, integrates directly with Amazon and other marketplaces, automating VAT registrations, OSS filings, and local returns across Europe. When expanding your brand onto the CEE program, working without a tax partner can amount to negligence, given the complexity and risk of missed obligations.
With the right partner on the other hand, CEE offers a streamlined path to cost savings, faster deliveries, and worry-free compliance – allowing brands to focus on growing their presence across European markets.