Short answer? Yeah — most of the time, you do. But let’s not make it complicated. If you’re selling on Amazon, whether you’re making a little side cash or running a full-on brand, you should definitely be thinking about taxes.
Not tomorrow. Not when Amazon sends you that scary message. Now.
So who exactly needs to register?
If you’re selling regularly and making money — like actual profit, not just testing the waters — then chances are you need to register for tax in your country. Whether it’s sales tax, VAT, or income tax, something’s probably coming for you.
Does that mean everyone? Not really. But most.
Let’s say you’re based in the UAE. If your revenue crosses AED 375,000 a year, you’re required to register for corporate tax. That’s just how it works now.
In other places like the US or UK? You’ve got income tax, sales tax, VAT — depends on where you live and where your customers are.
“But I’m just selling a few things online…”
Doesn’t matter. If you’re making money consistently, you’re running a business. You may not feel like a “real business owner” yet, but tax authorities don’t care. If they see regular transactions, they’re gonna expect registration.
Trust me, it’s better to register early than deal with the mess later.
What if you’re dropshipping or doing FBA?
Same story. Whether it’s your stock or Amazon’s warehouse, the income is still yours. So yeah — tax applies. Doesn’t matter how the orders are fulfilled.
Some sellers think using Amazon FBA means Amazon handles taxes too. Nope. They help with collecting sales tax in some places, but you are still responsible for registering, reporting, and paying the right amount.
Real-life? It hits fast.
I’ve seen sellers ignore this stuff until their account gets flagged. Or they can’t open a business bank account. Or they get hit with a fine. It’s not fun. You don’t wanna be that person scrambling to fix things last minute.
