Paying less tax as an Amazon seller is possible, but only by legal routes: deducting every expense that is genuinely business-related, choosing the right structure (sole trader or company) and avoiding VAT mistakes that cost money. This guide summarises where real savings usually are and where the risks lie.
Informational guide reviewed in October 2026. It is not personalised tax advice: rules change and every case is different.
1. Deduct everything that is truly business
- Amazon fees, FBA costs, storage and advertising (Amazon Ads).
- Product cost, shipping, customs and packaging.
- Tools and software, accountant fees and self-employed contributions, if you are a sole trader.
- Depreciation of equipment and other assets used in the business.
The requirement is to keep the invoice and be able to show the expense is linked to the activity. An expense with no receipt, or mixed with personal spending, is the first one challenged in an audit.
2. Choose the structure according to profit
With low profits it is usually simpler to stay a sole trader. As profit grows, a company can make sense because it pays corporate tax and lets you decide how much you take as salary or dividend. We cover it in sole trader or company for Amazon sellers. An Estonian OÜ adds 0% on profits kept in the company, but with limits if you live in Spain: see what 0% really means and where the company is tax resident.
3. Do not lose money on VAT
Input VAT is recoverable, but only if you invoice properly and file in every country where you have an obligation. Storing with FBA in several countries may require registering there. Details in Pan-EU VAT countries and EU VAT returns for ecommerce.
What is not tax saving
- Deducting personal expenses as business ones.
- Not reporting Amazon sales because "Amazon already knows".
- Setting up a foreign company with no real substance to hide profits.
That is fraud, not optimisation, and it carries penalties.
Next step
If you want to know how much you could legally save with your numbers, tell us your case. For the cost of a foreign company, read how much an OÜ costs.