How to Sell on Amazon as a US non-resident

When I first considered starting my Amazon business, one of my biggest questions was about taxes. It’s a valid concern—eCommerce taxation can feel like navigating a gray area. With ever-changing rules and country-specific policies, clear-cut answers are rare.

Imagine buying products from China, shipping them to the U.S., and selling them—all while sipping coffee in Spain or Dubai. It’s a remote work dream, but when tax season rolls around, things can get… complicated.

Let me preface this by saying: I’m not a tax expert. What you’ll read here is based solely on my experience. If your situation differs, consulting a professional is a must—better safe than sorry!

My Setup

I’m a resident of Spain and have an LLC registered here. Setting up my business entity was step one before opening my Amazon seller account. Why? Because I wanted to start as a professional seller, not an individual one. Based on my experience managing Amazon accounts, a professional setup offers more advantages.

Once my LLC was established, I opened my Amazon account and completed the verification process. I’ll cover that process in detail in another post.

Tax Obligations

Here’s the good news: I declare taxes only in Spain, not in the U.S. Amazon collects sales tax directly from customers and handles it—it doesn’t pass through me.

However, there’s a VAT twist. As an individual seller, Amazon charges 20% VAT on seller fees and advertising costs. Why? Because Amazon views individuals as consumers. But if you’re a professional seller and provide your business VAT number, this 20% VAT is waived.

For digital services like seller fees and ads, entering your VAT number ensures Amazon classifies you as a business, not a consumer—saving you unnecessary charges.

As a resident of Spain, all income, whether local or international, is taxable here. It’s a reminder that remote selling doesn’t mean escaping tax obligations—but it does mean managing them wisely.

Got questions? Drop a comment or send me an email.