Entering the EU with Lower Corporation Tax on Your Amazon Business

Jodea Pearl Abalos
September 16, 2019

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Alex Chernenko has lived in Ireland for the past 16 years helping Amazon sellers get registered in Europe. In this session, he shares with us the options of how Amazon sellers can enter the EU with lower corporation taxes.

Looking to Hit the EU Market

He has helped Amazon sellers and other businesses get registered in the EU.
US sellers can hit the EU market-3 ways to do that:
- FIRST. Use your existent US based company and apply for the European tax number.
- SECOND. Some would split up their company and set up their company. People usually start from the UK or Ireland because of low corporation taxes.
  - Sometimes, sellers would go to Estonia and Bulgaria.
  - Or Eastern Europe which could be a little bit risky – a little bit of a grayer area.
- THIRD. least used. Register for taxes in Europe and file only one declaration in the US.
There is a little bit of uncertainty with BREXIT looming. Nobody knows what will happen.
- Wouldn’t recommend setting up in the UK right now.
- Ireland is another option – lower corporation taxes (12.5%)
- UK has 19% for taxes.

Setting Up in Ireland

Most tax efficient jurisdiction in Europe and #4 in the world.
Tax is 12.5% and after net profits.
Process can be done remotely — when setting up.
- Setting up can be in one week.
- Have an expert file this in your behalf to avoid problems!
Most sellers would start with simple VAT registration with UK or Germany and then file a PAN-EU to file a single country registration and just apply to the rest of the EU.
- NOTE: Do this before the new changes come in.
Amazon UK account? How to avoid getting in the infinite loop of getting suspended?
- It has been getting harder and harder to open an account.
- A person outside the approved countries can not set up an account. But if the person owns an entity within the approved country then Amazon is supposed to grant the account.
- Can take one day to one month or even more.

Requirements for Setting Up

Required paperwork in Ireland:
- Registering through an agent, you will be given the full packet:
  - Constitution, memorandum, articles of association, extracts from the registry, proof of address, bill or bank account in the corporations address.
  - NEW! Amazon now sends codes to registered address to confirm your presence.

Connect with Alex

Visit: chern.co for a one-hour free consultation. No obligations! Talk about taxes

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