Overview

Expanding your Amazon business internationally can unlock significant revenue opportunities, but it also introduces a complex web of tax obligations and regulatory requirements. Every country where Amazon operates a marketplace has its own rules governing sales tax, import duties, product compliance, and intellectual property. This reference guide breaks down what Amazon sellers need to understand before listing products in foreign stores through Amazon Global Selling.

Key Points / What Sellers Need to Know

• Tax obligations vary by country — Each Amazon marketplace has distinct tax collection, reporting, and remittance requirements that sellers must comply with independently.
• VAT and GST registration may be required — Selling into European, UK, Australian, Japanese, or Indian marketplaces typically requires registering for Value Added Tax or Goods and Services Tax in those jurisdictions.
• Import duties and customs apply to cross-border shipments — When you ship inventory to fulfillment centers in another country, you are responsible for understanding and paying applicable customs duties and import fees.
• Product compliance is not optional — Every marketplace enforces product safety, labeling, and environmental regulations that may differ significantly from your home country's standards.
• Intellectual property laws differ across borders — Trademark and patent protections registered in one country do not automatically extend to others, and parallel import restrictions may apply.
• Professional tax advice is strongly recommended — Amazon explicitly advises sellers to consult qualified tax and regulatory professionals before expanding internationally.

Tax Requirements by Region

Sellers targeting European marketplaces face some of the most complex tax landscapes in global ecommerce. The European Union requires VAT registration in each member state where you store inventory or exceed distance selling thresholds. The UK, now operating independently post-Brexit, has its own VAT registration requirements with a registration threshold for domestic sellers and immediate obligations for overseas sellers. Amazon offers the VAT Calculation Service and VAT Services on Amazon program in Europe to help simplify compliance, but ultimate responsibility rests with the seller. In North America, Canadian sellers must navigate GST/HST obligations, while Mexican sellers deal with income tax withholding and VAT requirements. For Asia-Pacific stores including Japan, Australia, Singapore, and India, each country maintains its own consumption tax or GST framework. The Middle East marketplaces in the UAE and Saudi Arabia impose VAT at five percent, with registration thresholds that most active sellers will meet.