The Amazon Opportunity — and Why Accounting Catches Sellers Out

Ireland has one of the fastest-growing cohorts of Amazon sellers in Western Europe. From cottage industry crafters selling handmade goods to entrepreneurs running six-figure private label operations from a home office in Leinster, the Amazon marketplace has opened up genuinely global distribution to Irish businesses of every size.

But there is a gap that catches almost every Amazon seller at some point: the gap between what Amazon pays you and what you actually owe Revenue. Amazon is extraordinarily good at getting your products in front of customers. It is not, however, your accountant, your tax adviser, or your compliance officer. The platform handles some VAT on your behalf in some markets — but the responsibility for your Irish income tax, your VAT registration obligations, your EU compliance, and your bookkeeping sits squarely with you.

The sellers who get into trouble are not usually the ones who are deliberately cutting corners. They are the ones who did not know what they did not know. This guide sets out to fix that.

How Amazon Income Is Taxed in Ireland

Every euro of profit you make from selling on Amazon is taxable income in Ireland. The way that income is taxed depends on your business structure — whether you operate as a sole trader or through a limited company. Most new Amazon sellers start as sole traders and many stay that way; some reach a point where incorporation makes financial sense. We cover the comparison in Section 8.

Sole Traders — Self-Assessment and Form 11

If you sell on Amazon as a sole trader, your Amazon profits are added to any other income you have (employment, rental, investments) and taxed under the self-assessment system. You must:

• Register for income tax with Revenue if your non-PAYE income exceeds €5,000 net or €30,000 gross in a tax year
• File an annual Form 11 tax return by 31 October each year for the previous tax year (extended to mid-November if filing and paying via ROS)
• Pay Preliminary Tax for the current year at the same time — typically 100% of your previous year’s liability, or 90% of your estimated current year liability
• Pay Class S PRSI at 4.2% on your net trading profits (with a minimum contribution of €500/year)
• Pay USC on all income above €13,000 per year — in bands of 0.5%, 2%, 3%, and 8%

Your Amazon profit is not your Amazon turnover. It is your sales revenue less all allowable business expenses. See Section 7 for a full list of what you can claim. This distinction matters enormously — many sole trader Amazon sellers overpay tax because they do not claim all the expenses they are entitled to.

Income Tax Rates (2026)

Income Level	Rate	Notes
First €42,000 (single person)	20% income tax	Standard rate band — increases for married couples / civil partners
Above €42,000	40% income tax	Higher rate on all income above threshold
USC Band 1: €0–€12,012	0.5%	Universal Social Charge
USC Band 2: €12,013–€25,760	2%
USC Band 3: €25,761–€70,044	3%
USC Band 4: Above €70,044	8%
Class S PRSI (self-employed)	4.2%	Minimum €500/year; rises to 4.35% from Oct 2026

A sole trader Amazon seller making €60,000 net profit in 2026 faces an effective total tax rate (income tax + USC + PRSI) of approximately 42–45% on the income above the standard rate band. This is a significant cost, and it is one of the primary reasons established Amazon sellers consider incorporating.

Limited Companies — Corporation Tax

A limited company pays corporation tax at 12.5% on Irish trading profits — substantially lower than the top personal income tax rate of 40%. However, corporation tax is only one layer: getting money from the company into your personal pocket involves salary (PAYE), dividends, or a combination, each with its own tax implications. We cover this in Section 8.

VAT Registration — Your Irish Obligations

VAT is one of the most frequently misunderstood obligations for Irish Amazon sellers — and one of the most expensive to get wrong. There are two distinct layers to think about: your Irish VAT obligations (whether you need to register here) and your EU VAT obligations (whether you need to register or use OSS in other member states). This section covers the Irish side. Section 4 covers the EU picture.

When Must an Irish Amazon Seller Register for VAT?

In Ireland, VAT registration is mandatory when your taxable turnover exceeds the relevant threshold:

Supply Type	VAT Registration Threshold	Notes
Goods	€80,000 per year	Most Amazon sellers selling physical products fall here
Services	€40,000 per year	Applies if your primary supply is a service rather than goods
Both goods and services	Lower threshold applies	If you supply both, use the goods threshold if goods dominate

Once registered, you must charge Irish VAT at the appropriate rate (23% standard rate for most goods), file VAT returns (typically bi-monthly), and pay VAT to Revenue on time. You can also reclaim input VAT on business purchases — including stock, packaging, software, and professional fees.

What Irish VAT Rate Applies to My Products?

VAT Rate	Applies To	Examples
23% (Standard)	Most physical goods	Electronics, clothing, toys, tools, household goods
13.5% (Reduced)	Certain goods and services	Some building materials, hospitality-related goods
9% (Second reduced)	Newspapers, certain sports facilities	Limited application for most Amazon sellers
0% (Zero-rated)	Children’s clothing/footwear, most food, books	Exempt but still reportable on VAT return

Can I Reclaim VAT on My Amazon Costs?

Yes — once VAT registered, you can reclaim the VAT element of allowable business expenses, including:

• Stock purchases from VAT-registered Irish or EU suppliers (who issue valid VAT invoices)
• Packaging, labelling, and fulfilment materials purchased in Ireland
• Software subscriptions that have an Irish VAT element
• Professional fees (accountant, solicitor, consultant) from Irish VAT-registered providers
• Import VAT paid on goods brought into Ireland from outside the EU (via C79 certificate)

Amazon’s fees themselves (referral fees, FBA fees) are generally subject to a reverse charge mechanism rather than direct VAT — your accountant will handle this correctly on your VAT return.

EU VAT, One Stop Shop (OSS), and Amazon FBA

If you sell on Amazon to customers across Europe — or if you use Amazon’s Fulfilment by Amazon (FBA) service with stock stored in EU warehouses — you have EU VAT obligations that go well beyond your Irish registration. This is the area where Irish Amazon sellers are most frequently non-compliant, and where the financial exposure can be largest.

The EU-Wide Distance Selling Threshold

Since July 2021, a single EU-wide threshold of €10,000 applies to cross-border B2C (business to consumer) sales. If your total cross-border B2C sales to EU customers across all countries combined exceed €10,000 in a calendar year, you are required to either:

• Register for the One Stop Shop (OSS) in your home EU member state (Ireland) and file quarterly OSS returns accounting for VAT in each destination country, OR
• Register for VAT individually in each EU country where you have customers

For most Irish Amazon sellers selling B2C across Europe, OSS is the correct and most efficient route — one return, filed in Ireland, covering all EU member states. However, OSS is not a complete solution for all Amazon sellers.

OSS Does NOT Cover Everything — FBA Changes the Picture

The One Stop Shop scheme only applies to cross-border B2C sales. It does not cover:

• Sales from locally-stored stock — if Amazon holds your inventory in a German warehouse and you sell to a German customer, that is a domestic German sale, not a cross-border sale. It falls outside OSS and requires a German VAT registration.
• Intra-community stock transfers — when Amazon moves your goods between fulfilment centres in different EU countries, those movements are treated as self-supplies and must be reported locally.
• B2B (business to business) sales — OSS only applies to B2C transactions.

Import VAT — on goods imported from outside the EU, separate IOSS rules or local import VAT procedures apply.

OSS Returns — Deadlines and Rates

If registered for OSS in Ireland, you file quarterly OSS returns through Revenue Online Service (ROS). Deadlines are:

Quarter	Period	Filing Deadline
Q1	January – March	30 April
Q2	April – June	31 July
Q3	July – September	31 October
Q4	October – December	31 January (following year)

Each OSS return must account for sales in each destination EU country at that country’s applicable VAT rate. VAT rates vary significantly across the EU — German standard VAT is 19%, French is 20%, Italian is 22%. Your accounting software or VAT service needs to apply the correct rate for each sale by destination country.

DAC7 — Why Revenue Already Knows What You’re Earning

Here is something every Irish Amazon seller needs to understand: Revenue does not rely solely on self-reported income to know what you earn on Amazon. Since January 2024, Amazon has been legally required to report your earnings directly to EU tax authorities under the DAC7 Directive — and it has been doing so on a quarterly basis.

What Is DAC7?

DAC7 (Council Directive 2021/514) is EU legislation that requires digital marketplace operators — including Amazon, Etsy, eBay, and Airbnb — to collect and verify information about their sellers and report that information to the relevant national tax authorities each year. In Ireland, Amazon reports to Revenue. Revenue then exchanges data with other EU member states.In Ireland, the reporting threshold that triggers DAC7 inclusion is €2,000 in total consideration or 30 or more transactions in a reporting period. The vast majority of active Amazon sellers will exceed both thresholds.

What Information Does Amazon Share with Revenue?

Amazon provides Revenue with the following seller information each reporting year:

• Your full legal name and business name
• Your address and Tax Identification Number (Irish PPS number or company tax number)
• Your total gross sales revenue for the year, broken down by quarter
• The number of transactions you completed
• Any fees deducted by Amazon (referral fees, FBA fees, etc.)
• Details of bank accounts to which Amazon pays you

DAC7 and You — What To Do

If you are a compliant Irish Amazon seller with all income declared, VAT filed, and tax returns submitted accurately, DAC7 is not a problem. It is simply Revenue having visibility that matches what you have already told them.

If you are not yet compliant, or uncertain about your compliance position, the correct approach is:

1. Conduct a compliance review

Establish what income has been earned, what has been declared, and what the gap might be.

2. Quantify any underpayment

Work out the income tax, USC, PRSI, and VAT that may be outstanding.

3. Make a qualifying disclosure

Before Revenue contacts you, a voluntary qualifying disclosure significantly reduces penalties — from up to 100% of the underpayment down to 3–20%. The window is before Revenue initiates contact about a specific liability.

4. Get compliant going forward

Register for income tax and VAT as required, file returns, and maintain proper records.

Amazon Bookkeeping — Reconciling Your Payouts

Amazon’s payment system is notoriously complex from a bookkeeping perspective. The amount that lands in your bank account every two weeks is not your revenue — it is a net settlement figure after Amazon has deducted dozens of line items including referral fees, FBA fees, advertising charges, storage fees, returns, refunds, and adjustments. Treating your bank deposits as your income figure is one of the most common — and most expensive — accounting mistakes Irish Amazon sellers make.

Understanding Your Amazon Settlement

Each Amazon settlement report contains:

Item	What It Represents	Tax Treatment
Product sales	Gross revenue from customer purchases	Taxable income — record as turnover
Shipping credits	Amounts customers paid for shipping	Taxable income if you receive it
Referral fees	Amazon’s commission (typically 8–15% of sale price)	Allowable business expense
FBA fees	Picking, packing, and shipping fees charged by Amazon	Allowable business expense
FBA storage fees	Monthly charges for warehouse space	Allowable business expense
Advertising (PPC)	Amazon Sponsored Products / Brands costs	Allowable business expense
Returns and refunds	Gross refunds to customers	Reduces turnover; also releases some fees
Promotional rebates	Discounts funded by Amazon	Reduces gross revenue
Vine programme fees	Costs for Amazon Vine review programme	Allowable business expense
Loan repayments	Amazon Lending repayments if applicable	Principal is balance sheet; interest is P&L

Correct Bookkeeping Methodology

The correct approach for Amazon seller bookkeeping is:

1. Record gross product sales as turnover — not the net settlement amount
2. Record each category of Amazon fees as a separate expense line — this gives you visibility on your cost structure and ensures all deductible costs are captured
3. Reconcile your settlement reports to your bank deposits every settlement period — any discrepancy needs to be investigated
4. Track inventory purchases separately as stock (a balance sheet item, not immediately an expense — it becomes cost of goods sold when the items are sold)
5. Record VAT separately from revenue, particularly if selling to OSS-liable countries at different rates
6. Maintain records of returns and refunds by month to correctly adjust your VAT position

Software Recommendations for Amazon Sellers

Managing Amazon bookkeeping manually in a spreadsheet becomes impractical above modest volumes. The following platforms integrate with Amazon Seller Central and can import settlement data automatically:

• A2X — specifically built for Amazon sellers; automatically categorises Amazon transactions and maps them to accounting software
• Xero or QuickBooks — combined with A2X for automated settlement reconciliation; both support Irish VAT returns and OSS filing
• Linnworks or Katana — for sellers with complex multi-channel inventory management needs

Whatever software you use, the key is ensuring your data is reconciled correctly before your accountant files your returns. Garbage in, garbage out — and in this case, garbage out means an incorrect tax return and the risk of Revenue scrutiny.

Allowable Expenses for Amazon Sellers in Ireland

One of the most significant ways an Irish Amazon seller can legally reduce their tax bill is by correctly identifying and claiming all allowable business expenses. Your taxable profit is your revenue minus allowable expenses — every euro of genuinely incurred business expense that you fail to claim increases your tax bill unnecessarily.Revenue allows deductions for expenses that are wholly and exclusively incurred for the purpose of the trade. For Amazon sellers, the following categories typically qualify:

Cost of Goods Sold (COGS)

The single largest deductible expense for most Amazon sellers. This includes:

• Purchase price of inventory sold during the year
• Import duties, customs charges, and freight costs on stock purchases
• Cost of product samples and testing
• Quality inspection fees paid to third-party inspectors (e.g. in China)

Note: Inventory that has not yet been sold is a balance sheet asset (stock), not an immediate expense. Only the cost of goods actually sold in the tax year is deducted from that year’s profit.

Amazon Platform Fees

• Referral fees (Amazon’s commission on each sale)
• FBA fees (pick, pack, and ship per unit)
• FBA storage fees (monthly and long-term storage)
• Amazon Seller Central subscription (Individual or Professional plan fee)
• Sponsored Products and Sponsored Brands advertising spend
• Amazon Vine programme fees
• Returns processing fees
• Removal and disposal fees for stranded or unsellable inventory

Logistics and Fulfilment

• Freight forwarder fees (sea or air freight from supplier to Amazon warehouse)
• Courier and shipping costs (if using FBM — Fulfilment by Merchant)
• Third-party logistics (3PL) costs if you use a prep centre in Ireland or the UK
• Packaging, labels, poly bags, bubble wrap, cartons

Professional and Software Costs

• Accountant and bookkeeper fees
• VAT compliance and OSS filing services
• Legal fees (contracts, IP protection, trademark registration)
• Amazon seller tools (Helium 10, Jungle Scout, Keepa, SellerApp)
• Accounting software (Xero, QuickBooks)
• A2X or similar transaction management tools
• Photography, graphic design, and brand asset creation

Other Allowable Expenses

• Home office costs — a proportion of rent/mortgage interest, utilities, and broadband if you work from home (Revenue approved method)
• Business banking fees and payment processing charges
• Relevant training courses, books, and subscriptions
• Travel expenses for supplier visits or trade shows (wholly business-related)
• Capital allowances on equipment (computer, camera, office furniture) at 12.5% per year over 8 years

Sole Trader vs Limited Company for Irish Amazon Sellers

The question of whether to operate as a sole trader or through a limited company is one of the most important financial decisions an Irish Amazon seller can make. The right answer depends on your profit level, your personal financial situation, and your plans for the business. There is no universal correct answer — but there are clear indicators.

When Does Incorporation Make Sense for an Amazon Seller?

As a general rule of thumb, incorporation typically makes financial sense when your Amazon net profit exceeds €40,000–€50,000 per year and you do not need to extract all of that profit personally to live on. If you can leave retained profits in the company (investing in stock, growth, or other purposes), the tax saving from paying 12.5% corporation tax instead of 40%+ personal income tax is substantial.An Amazon seller making €80,000 net profit as a sole trader might face a combined income tax / USC / PRSI bill of around €34,000–€38,000. The same profit in a limited company paying corporation tax at 12.5% results in a company tax bill of €10,000 — leaving €70,000 in the company. The director then draws a tax-efficient salary (typically set to maximise PRSI credits without hitting the 40% band) and takes the remainder as dividends when and if needed.

Case Studies

The following case studies are based on real client situations handled by the Forti.ie team. Names, identifying details, and specific figures have been changed or anonymised. They are illustrative of the types of challenges Irish Amazon sellers face and how specialist accounting support resolves them.

1. The Handmade Goods Seller Who Did Not Know About VAT

Background:

A sole trader in the west of Ireland had been selling handmade homeware products on Amazon.co.uk and Amazon.de for three years, building turnover to approximately €95,000 per year. She operated from home and managed everything herself, including her own bookkeeping on a spreadsheet.

The Problem:

When she came to Forti.ie, she had never registered for VAT in Ireland and had not filed a self-assessment tax return for any of the three years she had been trading. She was aware she should probably be doing something but had not known what. Her combined unpaid Irish income tax, VAT, and PRSI across three years was estimated at approximately €48,000 before interest and penalties. She had also not registered for VAT in Germany despite having significant sales to German customers — a separate exposure.

What We Did:

We conducted a full compliance review, reconstructed her accounts for all three years from Amazon settlement reports and bank records, and quantified the exact liability. We then prepared and filed an unprompted qualifying disclosure with Revenue for the Irish liabilities. Simultaneously, we engaged a German VAT agent to address the German registration and file back-returns with the German tax authority under their voluntary disclosure equivalent.

The Outcome:

The qualifying disclosure resulted in penalties being capped at 3% of the Irish liability rather than the potential 100%. The total amount paid, including all tax, PRSI, VAT, interest, and penalties, was approximately €54,000 — substantially less than the unmanaged exposure would have been. She was then set up with a proper accounting and VAT compliance system going forward, including quarterly OSS filings through Revenue.

2. The FBA Seller Unaware of Pan-EU Stock Obligations

Background:

A private label seller in Dublin had been using Amazon Pan-European FBA for two years, selling into markets across Germany, France, Spain, Poland, and Italy. He was VAT-registered in Ireland and filed regular Irish VAT returns. He believed he was compliant because he had ‘sorted VAT’. His turnover had grown to approximately €320,000 across EU markets.

The Problem:

A review of his account revealed he had VAT registration obligations in Germany, France, Poland, Spain, and Italy due to Amazon storing his inventory in fulfilment centres in all five countries. He had no local VAT registrations in any of those countries. His Irish VAT return was also incorrectly treating EU sales as if OSS applied to all of them — but OSS cannot cover domestic sales from locally-stored stock. Additionally, DAC7 data submitted by Amazon to German tax authorities had flagged his inventory presence and triggered a registration demand letter from the German Finanzamt.

What We Did:

Forti.ie coordinated VAT registrations in all five required countries through specialist local agents in each jurisdiction. Back-filings were completed in Germany, France, and Poland under their respective voluntary disclosure frameworks where available. His OSS filings were reconstructed to correctly exclude domestic sales from local stock. His Irish VAT returns were also corrected to remove the incorrectly claimed input VAT on German import VAT (which should have been reclaimed locally in Germany).

The Outcome:

The total cost of remediation — registrations, back-filings, penalties, and professional fees across all jurisdictions — was approximately €28,000. Had he waited for Revenue authorities in each country to complete their investigations, the exposure would have been significantly higher. His business is now fully compliant across all five EU markets with automated VAT filing managed by Forti.ie on an ongoing basis.

3. The Successful Seller Who Incorporated at Exactly the Right Time

Background:

A sole trader in Cork had been selling sports nutrition products on Amazon for four years, growing from a side income to a primary income of approximately €110,000 net profit per year. He was registered for income tax and VAT, filed his Form 11 on time each year, and had a reasonable grasp of his obligations. His problem was a growing tax bill: as a sole trader on €110,000 net profit, he was paying approximately €48,000 in combined income tax, USC, and PRSI — leaving him €62,000 to live on.

The Problem:

He approached Forti.ie asking whether incorporation would save him money, and if so, when and how to do it. He had heard from other sellers that a limited company would reduce his tax bill but was unclear on the specifics and worried about compliance complexity.

What We Did:

We modelled his tax position across four scenarios: remaining as a sole trader; incorporating immediately; incorporating and paying himself a salary only; incorporating and taking salary plus dividends. The analysis showed that by incorporating and drawing a salary of €42,000 (using the full standard rate band) plus dividends of €25,000 at a point that suited his personal cash needs, his overall tax position could be improved materially. The remaining profits, retained in the company and reinvested in stock, were taxed at 12.5% rather than at personal rates. We managed the incorporation, registered the company with the CRO and Revenue, transferred trading to the new entity, set up payroll, and established the correct dividend policy.

The Outcome:

In the first full year of trading through the limited company, his combined personal and company tax bill reduced from approximately €48,000 to approximately €27,000 — a saving of €21,000, against annual accounting fees of €3,800. The retained profits in the company are now being used to fund new product launches. He has since expanded to three additional product lines and is on track for €200,000 turnover this year.

Frequently Asked Questions

The following questions are among the most common we receive from Irish Amazon sellers. They cover the practical day-to-day compliance questions that arise when running an Amazon business in Ireland in 2026.

Do I need to register for VAT to sell on Amazon in Ireland?

Not immediately — but you may need to sooner than you think. If your Amazon turnover from goods exceeds €80,000 in a 12-month period, VAT registration in Ireland is mandatory. However, even below this threshold, you may need to register for EU OSS if your cross-border EU sales exceed €10,000. And if you use Amazon FBA with stock stored in other EU countries, you may need local VAT registrations in those countries regardless of your sales volume. Review your position early — do not wait until you breach a threshold.

Does Amazon collect and pay VAT on my behalf?

It depends on the marketplace and transaction type. Amazon operates as a deemed supplier for certain sales — particularly sales by non-EU sellers to EU customers. For Irish-registered Amazon sellers selling on Amazon.co.uk or EU marketplaces, Amazon may collect and remit VAT in certain circumstances (e.g. UK sales under the UK marketplace facilitator rules). However, for your Irish VAT obligations and your OSS obligations on cross-border EU sales, you remain responsible. Amazon’s VAT Calculation Service can assist with setting correct VAT rates, but it does not file your returns or manage your registrations. Do not assume Amazon has handled your VAT compliance.

I sell on Amazon as a hobby — do I still owe tax?

If you are making a profit — even occasionally — Revenue takes the view that this is a taxable trade, not a hobby. The distinction between hobby and trade in Irish tax law is not based on how casually you approach the business; it is based on whether you are engaging in a systematic and sustained effort to make a profit. Most Amazon sellers, even those who started as hobbyists, meet this test. If your non-PAYE income (including Amazon income) exceeds €5,000 net or €30,000 gross in a tax year, you must register for self-assessment and file a Form 11.

What is DAC7 and does it affect me?

DAC7 is EU legislation that requires digital marketplace operators (including Amazon) to report seller earnings and transaction details to EU tax authorities annually. In Ireland, Amazon reports directly to Revenue. The threshold that triggers inclusion in DAC7 reporting is €2,000 in total income or 30 or more transactions in a reporting period. The vast majority of active Amazon sellers exceed this. Since January 2024, Amazon has submitted annual DAC7 reports to Revenue. Revenue now has several years of data on Irish Amazon sellers’ earnings — making undisclosed Amazon income significantly easier to identify.

What is the One Stop Shop (OSS) and do I need to use it?

The One Stop Shop (OSS) is an EU VAT simplification scheme that allows you to file a single quarterly VAT return in Ireland covering B2C sales to customers in all 27 EU member states, rather than registering for VAT in each country individually. You need to use OSS (or register locally in each country) once your total cross-border EU B2C sales exceed €10,000 per year. OSS does not cover sales of goods stored in other EU countries — those require local VAT registrations regardless of the OSS threshold.

Should I use Amazon FBA or FBM from a tax perspective?

From a pure Irish tax perspective, both FBA and FBM create the same Irish income tax obligations. The difference arises with EU VAT: FBA significantly increases your EU VAT complexity because Amazon may store your goods in multiple EU countries, creating local VAT registration obligations in each of those countries. FBM (Fulfilment by Merchant), where you ship directly from Ireland, typically only creates OSS obligations for cross-border B2C sales above €10,000. Many sellers choose FBA for its operational and sales rank benefits, but they should do so with full awareness of the VAT compliance requirements — and budget for the cost of managing multiple EU VAT registrations.

How far back can Revenue go if I have not declared my Amazon income?

Revenue can generally go back 4 years for innocent errors in self-assessment. Where deliberate non-compliance, fraud, or neglect is involved, there is no fixed time limit. Given that DAC7 reporting started for the 2023 tax year (submitted by Amazon in January 2024), Revenue now has at minimum the 2023 and 2024 tax years as a starting point. The appropriate response if you have undisclosed Amazon income is to take professional advice and make an unprompted qualifying disclosure to Revenue before Revenue contacts you. This significantly reduces the applicable penalties.

What expenses can I claim against my Amazon income?

You can claim any expense that is wholly and exclusively incurred for the purpose of your Amazon trade. This includes cost of goods sold (inventory), Amazon fees (referral, FBA, advertising, storage), freight and logistics costs, packaging, accounting and VAT compliance fees, Amazon seller tools and software, a portion of home office costs, capital allowances on business equipment, and professional development costs. You cannot claim personal expenses, the personal portion of dual-purpose costs, or capital items that should be depreciated via capital allowances.

When should I consider incorporating my Amazon business as a limited company?

The general trigger point for considering incorporation is when your Amazon net profit exceeds €40,000–€50,000 per year and you do not need to extract all of that profit personally for living expenses. The tax saving from paying 12.5% corporation tax on retained profits versus 40%+ personal income tax on those same profits can be substantial. However, incorporation also brings additional compliance costs (payroll, CT1 returns, CRO filings, higher accounting fees) that need to be weighed against the tax savings. Take professional advice before making this decision — the right answer depends on your specific financial situation.

What records do I need to keep as an Irish Amazon seller?

You are required to maintain records for a minimum of 6 years from the end of the relevant tax year. Records should include: Amazon settlement reports for all periods, purchase invoices for all stock and business expenses, records of inventory (opening stock, purchases, closing stock), bank statements, VAT records (sales, purchases, OSS returns), and correspondence with Revenue. Amazon settlement reports can be downloaded from Seller Central — we recommend downloading and archiving these monthly, as historical data may not be available indefinitely.