Setting Up a Cyprus Company for an Amazon Store or FBA Account: A Complete Solution by Chambers & Co

VAT Treatment and Compliance for Amazon Sellers

Operating an Amazon business from Cyprus involves navigating EU VAT regulations. We provide expert guidance to ensure your company remains compliant while optimising tax efficiency.

• VAT Registration: A Cyprus company selling goods on Amazon must register for VAT if it exceeds the EU distance-selling threshold (€10,000 annually for intra-EU sales under the OSS scheme). We handle the registration process and secure a Cyprus VAT number.
• VAT Information Exchange System (VIES): Your Cyprus VAT number is validated through VIES, enabling zero-rated intra-EU transactions and compliance with cross-border trade rules.
• One Stop Shop (OSS) VAT Scheme: For sellers targeting multiple EU countries, the OSS simplifies VAT reporting. Instead of registering for VAT in each country, you file a single quarterly return in Cyprus, covering all EU sales. We assist with OSS registration and filings.
• Amazon FBA and VAT: If using FBA, goods stored in Amazon warehouses across the EU may trigger VAT obligations in those countries. We help you manage multi-country VAT registrations or leverage OSS to streamline compliance.

Leveraging Amazon FBA with a Cyprus Company

Amazon’s Fulfilment by Amazon (FBA) program allows sellers to store inventory in Amazon’s warehouses, with Amazon handling picking, packing, and shipping. A Cyprus company integrates seamlessly with this model:

• Inventory Storage: You ship goods to Amazon’s EU warehouses (e.g., in Germany, France, or the UK). We advise on customs clearance and VAT implications for intra-EU movements.
• Shipping Logistics: From Cyprus, you can coordinate with suppliers globally, importing goods into the EU via Cyprus or directly to Amazon warehouses. We connect you with trusted freight forwarders and customs agents.
• Pan-European FBA: By enrolling in Amazon’s Pan-European FBA program, your inventory is distributed across multiple EU countries, optimising shipping times and costs. We ensure VAT compliance across jurisdictions.

How Shipping Works with a Cyprus-Based Amazon Business

Shipping is a critical component of your Amazon operation, whether selling directly or via FBA:

• Direct Shipping: For non-FBA sellers, orders are fulfilled from Cyprus or another location. We assist with setting up shipping solutions, including partnerships with couriers like DHL, FedEx, or local providers.
• FBA Shipping: Goods are sent in bulk to Amazon warehouses. We guide you through the process, from labeling and packaging requirements to coordinating with shipping providers.
• Cross-Border Efficiency: Cyprus’s EU status eliminates customs barriers within the Single Market, while its strategic location facilitates cost-effective shipping from non-EU suppliers (e.g., Asia).

Amazon Compliance and Requirements for Traders

Operating a successful Amazon store or Fulfilment by Amazon (FBA) account requires adherence to Amazon’s strict compliance standards. These requirements ensure a consistent, trustworthy experience for customers and maintain the platform’s reputation. For traders establishing a Cyprus company, understanding and meeting these expectations is key to launching and sustaining your business. At Chambers & Co, we structure our services to help you align with these standards efficiently.

Key Amazon Compliance Requirements

Amazon imposes several obligations on sellers, regardless of their location. Below are the core elements every trader should be prepared to address:

• Business Registration: Amazon requires sellers to operate through a legally registered entity, such as a Cyprus private limited liability company. This includes providing official documentation like incorporation certificates and tax identification details to verify your business’s legitimacy.
• Accurate Business Information: Sellers must submit up-to-date details, including the company’s legal name, registered address, and contact information. Consistency across all submitted documents is essential to avoid delays or account issues.
• Tax Compliance: Amazon expects traders to comply with applicable tax laws, including VAT registration where required. For a Cyprus-based company, this may involve registering for a VAT number and, if selling across the EU, adhering to regulations like the One Stop Shop (OSS) scheme or multi-country VAT obligations for FBA inventory.
• Proof of Operational Presence: Amazon often requests evidence of an active business location. For newcomers unable to afford standalone offices, a shared office address with supporting documentation (like a lease agreement or utility bill) can demonstrate a legitimate operational base.
• Bank Account Details: A business bank account linked to your company is mandatory for receiving payments. Cyprus’s robust banking sector makes it easy to open an account compatible with Amazon’s payout systems.
• Product and Listing Standards: Beyond company setup, Amazon requires compliance with its product policies, including accurate listings, proper labelling, and adherence to category-specific regulations (e.g., safety standards for electronics or certifications for health products).
• Performance Metrics: Sellers must maintain high standards for order fulfilment, customer service, and shipping times. For FBA users, Amazon handles much of this, but non-FBA sellers need reliable logistics in place.

How Chambers & Co Supports Compliance

We understand that navigating Amazon’s requirements can be daunting, especially for new traders. Our services are designed to simplify this process:

• Company Formation: We provide all necessary corporate documents in a format suitable for submission to Amazon.
• Tax and VAT Setup: We guide you through VAT registration and compliance options tailored to your Amazon business model.
• Affordable Office Solutions: For startups, our optional shared office lease agreements and utility services offer a cost-effective way to establish a verifiable presence.
• Ongoing Support: Our annual secretarial services ensure your company remains in good standing, avoiding compliance lapses that could affect your Amazon account.

Why Compliance Matters

Meeting Amazon’s standards is not just about account approval—it’s about building a sustainable business. Non-compliance can lead to account suspension, delayed payouts, or restricted marketplace access. By setting up your Cyprus company with a solid foundation, you position yourself for long-term success on Amazon’s platform.

Whether you’re launching a new store or scaling with FBA, Chambers & Co is here to ensure your Cyprus-based business meets Amazon’s expectations from the start. Contact us to discuss how we can support your compliance journey.