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Cross‑Border Amazon Account Transfers: Navigating Section 18, Tax and Compliance

The global nature of e‑commerce means that Amazon sellers often buy or sell businesses across borders. A U.S. seller might sell to a European buyer, or an international brand might acquire a U.S. Amazon store. Cross‑border transactions can unlock new markets and growth opportunities, but they also introduce layers of complexity around legal compliance, tax obligations and Amazon’s own policies. This article explains what makes cross‑border transfers challenging and how to prepare for them.

Why cross‑border transfers are different

When an Amazon account changes hands within the same country, sellers still need to comply with Section 18 of the Business Solutions Agreement, which prohibits assigning an account without Amazon’s consent. Cross‑border transfers add additional hurdles:

  • Regulatory differences: Each country has its own business registration requirements, tax regime and consumer protection laws. For example, sellers in Europe must comply with VAT rules and may have different thresholds for declaring beneficial owners. The EU requires disclosure of anyone holding 10 % or more ownership, whereas the U.S. generally focuses on owners with 25 % or more.
  • Marketplace account segregation: Amazon operates separate marketplaces for each region (e.g., Amazon.com, Amazon.co.uk, Amazon.de). Changing the entity in one region can trigger verification or compliance checks in another. Sellers migrating a U.S. account to an EU buyer often encounter greyed‑out fields because the account is locked pending verification.
  • Tax and payment compliance: The acquiring entity must have the correct tax IDs (EIN, VAT or GST numbers) and bank accounts in the country of operation. Failure to update tax information sequentially – after Amazon unlocks the fields – can trigger verification holds.

Steps to execute a cross‑border transfer

  1. Clarify the transaction type. Determine whether the transfer is a complete sale or an intra‑group reorganisation. Cross‑border sales typically involve asset purchase agreements, while intra‑company transfers may rely on affiliate exemptions. Regardless, Section 18 approval is required.
  2. Review regulatory obligations. Research the target country’s company formation, tax registration and beneficial ownership requirements. Ensure that the acquiring entity is eligible to operate a seller account in that jurisdiction, and consult local advisors if needed. Pay attention to VAT registration for EU marketplaces and GST for Australia/Canada.
  3. Prepare documentation for Amazon. Gather the usual documents (Articles of Incorporation, organisational charts, purchase agreements) and include translations if they’re not in English. Provide a detailed transition plan explaining why the transfer is cross‑border and how operations will be managed. Missing or outdated documents are a common reason for rejection.
  4. Request Amazon’s consent under Section 18. Open a case through Seller Central or Account Health, citing Section 18 and specifying that it’s a cross‑border transfer. Attach all supporting documents and wait for Amazon to approve and unlock the greyed‑out fields.
  5. Sequentially update entity information. Once Amazon approves, update the legal entity fields first, followed by tax information (EIN/VAT/GST), bank account, and contact details. Do not attempt to change everything at once; sequential updates reduce the risk of triggering fraud flags.
  6. Address tax and currency considerations. Set up a local bank account or currency conversion service that meets Amazon’s requirements. Register for VAT or GST in the relevant country and ensure you collect and remit taxes correctly moving forward. Consult tax advisors to understand the implications of moving profits across borders.
  7. Monitor post‑transfer compliance. After the transfer, monitor account health and verify that inventory, listings, and ad campaigns function correctly. Conduct a post‑migration audit to catch any errors and ensure that VAT/GST filings and insurance policies are updated.

Best practices for cross‑border deals

  • Engage local experts. Hiring attorneys and accountants familiar with the target jurisdiction’s laws will help you navigate company formation, tax registration and regulatory requirements.
  • Plan the timeline carefully. Cross‑border transfers often take longer than domestic ones due to additional paperwork and regulatory checks. Allow extra time for translations, apostilles and government approvals.
  • Budget for taxes and fees. Factor in customs duties, VAT, currency conversion fees and professional services. Unexpected costs can erode the attractiveness of the deal.
  • Consider escrow or holdbacks. To mitigate risk, negotiate an escrow arrangement or holdback to cover potential tax liabilities or compliance issues discovered post‑closing. This protects both parties and incentivises the seller to resolve outstanding obligations.

Conclusion

Cross‑border Amazon account transfers offer exciting opportunities but carry additional legal, tax and compliance risks. By understanding the differences between jurisdictions, preparing comprehensive documentation, obtaining Amazon’s consent and planning for sequential updates, you can execute a smooth and compliant transition. Partnering with international advisors and adopting thorough due diligence practices will help you avoid common pitfalls and protect your investment.