Running an Amazon FBA Business from the Netherlands
Running an Amazon FBA business is one of the more ambitious paths for Dutch-American Friendship Treaty (DAFT) entrepreneurs, but it's entirely doable. Several DAFT business owners we know run successful FBA operations from the Netherlands, selling on both Amazon.com and Amazon.eu marketplaces.
The catch: selling physical products through Amazon from the Netherlands introduces EU-specific requirements that don't exist when you're based in the US. VAT registration in multiple countries, European product compliance, and different fee structures all come into play.
Here's what you need to know to make it work.
Can You Run Amazon FBA Under DAFT?
Yes. Amazon FBA qualifies as a legitimate business activity for DAFT purposes. You're operating a business registered in the Netherlands, which is the core requirement.
The IND doesn't specify what type of business you need to run—just that it's a real, active business. An ecommerce operation with demonstrable sales, expenses, and activity absolutely qualifies. For more on what businesses work with DAFT, see our guide on what business you can start with DAFT.
Setting Up as a Dutch Amazon Seller
Amazon.com (US Marketplace)
If you already sell on Amazon.com, you can continue from the Netherlands. Your seller account stays the same. You'll update your business address and bank details.
Key changes:
- Update your seller address to your Dutch business address
- Add a Dutch or Wise business bank account for deposits
- Your US sales tax obligations may change (consult a US tax advisor)
- Shipping from US suppliers to US FBA warehouses continues as before
No change in operations: Your products are stored in and shipped from US FBA warehouses. The fact that you manage the business from the Netherlands doesn't affect the customer experience.
Amazon.eu (European Marketplaces)
Selling on Amazon's European marketplaces (Germany, France, Italy, Spain, Netherlands, etc.) opens up a huge market but adds complexity.
To sell on Amazon.eu you need:
- A European seller account (you can open one from your existing Amazon account)
- VAT registration in each country where your inventory is stored
- An EORI number (Economic Operators Registration and Identification) for importing goods into the EU
- Product compliance with EU regulations (CE marking, REACH, etc.)
VAT for Amazon FBA in the EU
This is the most complicated part. When Amazon stores your inventory across European warehouses (which they do automatically with their Pan-European FBA program), you may need VAT registration in every country with inventory.
Countries where Amazon typically stores FBA inventory:
- Germany
- France
- Italy
- Spain
- Poland
- Czech Republic
- Netherlands
What this means: You might need 7+ VAT registrations. Each country requires periodic VAT returns.
Cost of multi-country VAT compliance:
- VAT registration per country: €200-500 (one-time)
- Quarterly VAT filing per country: €100-300 per filing
- Annual cost for 5-7 countries: €3,000-8,000
Alternatives:
- Amazon's VAT Services: Amazon offers VAT calculation and filing services through third-party providers, often included for a period when you sign up for Pan-European FBA.
- Use only one fulfillment country: Instead of Pan-European FBA, use EFN (European Fulfillment Network) where inventory stays in one country but ships across borders. Slower delivery but simpler VAT.
- OSS for B2C sales: The One Stop Shop can cover cross-border B2C sales, but not the storage of inventory in another country. You still need local VAT registration for inventory storage.
Reality Check: Multi-country VAT compliance is the biggest operational burden of EU-based FBA. Budget €4,000-8,000 per year just for VAT administration if you go Pan-European. Many DAFT FBA sellers start with a single-country approach and expand only when sales justify the compliance cost.
Importing Products into the EU
If you source products from China or the US and ship them to European FBA warehouses, you're importing goods into the EU. This requires:
EORI number: Free to obtain through Dutch customs (Douane). Apply online at douane.nl. Processing takes 1-3 business days.
Import duties: Vary by product type (typically 0-12% of the product value). Use the EU TARIC database to look up duty rates for your specific products.
Import VAT: 21% in the Netherlands (or the rate of whichever country you import into). This is reclaimable on your VAT return, so it's not an additional cost—just a cash flow consideration.
Product compliance:
- CE marking for applicable products (electronics, toys, medical devices)
- REACH compliance for chemicals
- WEEE registration for electronics
- Packaging waste registration (varies by country)
Pro Tip: Use a customs broker for your first few shipments. They'll handle the paperwork and make sure duty codes are correct. A mistake on customs declarations can result in seized goods or unexpected duty bills. Budget €50-150 per shipment for broker fees.
Business Structure for FBA
Most DAFT FBA sellers start with an eenmanszaak (sole proprietorship). It's simple and free to register.
However, if your FBA revenue grows significantly (above ~€100,000-150,000 per year), consider a BV (private limited company) for:
- Liability protection (product liability is real with physical goods)
- Lower effective tax rate at higher income levels
- More professional image with suppliers
For details on structures, see our Dutch business structures guide.
Bookkeeping for FBA
Amazon FBA bookkeeping is more complex than service-based businesses because you're dealing with:
- Inventory management and cost of goods sold
- Multi-currency transactions (if selling on both US and EU marketplaces)
- FBA fees, storage fees, referral fees
- Import duties and customs costs
- Multi-country VAT
- Returns and refunds
Software recommendations:
- A2X: Specifically designed to convert Amazon settlement reports into accounting entries. Integrates with Xero and QuickBooks. From €19/month.
- Moneybird or e-Boekhouden: Dutch accounting platforms that handle eenmanszaak bookkeeping. You'll likely need A2X on top for Amazon-specific reconciliation.
For broader bookkeeping guidance, see our bookkeeping requirements for eenmanszaak.
Common Pitfalls
Underestimating EU compliance costs. VAT filings, product compliance, and packaging regulations add up. Budget at least €5,000-10,000 per year in compliance costs beyond what you'd pay in the US.
Ignoring product compliance. Selling non-compliant products on Amazon.eu can result in listing removal, fines, or customs seizure. Get CE marking and compliance documentation before shipping inventory to Europe.
Cash flow squeeze. Import VAT (21%) is reclaimable but ties up cash. On a €10,000 shipment, that's €2,100 you won't get back until your next VAT return (quarterly). Plan your cash flow accordingly.
Frequently Asked Questions
Q: Can I keep selling on Amazon.com while living in the Netherlands? A: Yes. Many DAFT entrepreneurs sell exclusively on Amazon.com. Your products are stored in and shipped from US FBA warehouses. You manage everything remotely. The only change is where you file taxes.
Q: Does Amazon FBA revenue count toward DAFT renewal requirements? A: Yes. FBA revenue is legitimate business income from your Dutch-registered business. At renewal, show your KVK registration, revenue figures, and business bank account activity. For more on what the IND expects, see annual DAFT business requirements.
Q: Should I keep my US LLC and my Dutch eenmanszaak separate? A: Many FBA sellers maintain a US LLC for Amazon.com sales and a Dutch eenmanszaak for Amazon.eu sales. This can simplify things, but you need to report worldwide income on your Dutch tax return regardless. Consult a cross-border accountant.
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We're not immigration lawyers—just Americans who did this. Requirements change, so verify with official sources.