1. Business Registration: No License, No Legal Trade
What applies?
Anyone who regularly purchases goods and resells them with the intent to profit is operating a business. In Germany, this requires a Gewerbeanmeldung (business registration) at your local trade office. This applies regardless of whether you establish a sole proprietorship, a partnership, or a limited liability company.
Occasional private sales (your old phone, sorted-out books) are exempt. But as soon as you buy new goods to resell on Amazon, you are operating commercially — even if it is only 10 items per month.
Why does it matter?
The business registration is the foundation for everything else: tax number, VAT ID, registrations with packaging registers. Without a registered business, you cannot properly fulfill any of these obligations.
Consequence of violation
Operating a business without registration is an administrative offense in Germany. Fines vary by municipality and can reach up to 50,000 euros. Additionally, the tax office may demand back taxes with interest if you have not declared your income.
Your action step
Visit your local trade office (often possible online), register your business (cost: 20-60 euros), and choose a suitable activity description like "Online retail of general merchandise." Within a few days, you will receive your trade license. The tax office will then automatically send you a questionnaire for tax registration.
For more details, see our guide: Selling on Amazon as a private individual — what you need to know
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2. VAT: Small Business Exemption, Standard Taxation, OSS
What applies?
As a registered business, you are generally liable for Value Added Tax (VAT). In Germany, the standard rate is 19%, the reduced rate is 7%. You must show VAT on every invoice and submit regular VAT returns to the tax office.
Small business exemption (Kleinunternehmerregelung, Section 19 UStG): If your revenue was below 25,000 euros in the previous year and is expected to stay below 100,000 euros in the current year, you can use this exemption. You then do not charge or remit VAT — but you also cannot deduct input VAT on your purchases.
One-Stop-Shop (OSS): If you sell to private customers in other EU countries (which happens automatically with Pan-EU sales on Amazon), you become liable for VAT in the destination country once your total cross-border B2C sales exceed 10,000 euros. Through the OSS procedure at the Federal Central Tax Office (BZSt), you can report and pay all EU VAT obligations centrally.
Why does it matter?
VAT is not optional. Tax authorities actively audit online sellers, and Amazon transmits sales data to tax authorities. Since the EU DAC7 directive, Amazon systematically reports seller revenues to national tax offices.
Consequence of violation
Tax evasion is a criminal offense. Beyond back payments including interest, you face monetary penalties and, in severe cases, imprisonment. Even negligent mistakes with VAT can trigger painful back payments.
Your action step
Make a deliberate choice between the small business exemption and standard taxation. If you plan to sell Pan-EU, register for the OSS procedure. Invest early in a tax advisor experienced with e-commerce — it saves more money in the long run than it costs.
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3. Packaging Law: LUCID Registration Is Mandatory
What applies?
The German Packaging Act (VerpackG) requires anyone who commercially places packaging on the market for the first time to register with the LUCID Register operated by the Central Agency Packaging Register (ZSVR). Additionally, you must participate in a dual system (e.g., Der Gruene Punkt, Interseroh, Reclay) and pay license fees based on your packaging volumes.
This affects you as an Amazon seller specifically: if you package products and ship them to end consumers, you are placing packaging on the market. This includes shipping boxes, fill material, tape, and product packaging.
Important for FBA sellers: Even though Amazon handles the shipping, you as the seller are responsible for the packaging — not Amazon.
Why does it matter?
Since 2022, Amazon actively checks whether sellers are registered in the LUCID Register and blocks listings from unregistered merchants. The ZSVR also cross-references data with marketplaces.
Consequence of violation
If you are not registered, you risk a sales ban by Amazon and fines up to 200,000 euros. Additionally, missing LUCID registrations are a popular basis for cease-and-desist letters from competitors.
Your action step
Register for free at lucid.verpackungsregister.org, get a contract with a dual system (costs from about 50-150 euros per year for small volumes), and enter your LUCID registration number in your Amazon Seller Central.
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4. Electrical Equipment Act (WEEE): Required for Electronics
What applies?
The German Electrical and Electronic Equipment Act (ElektroG) implements the European WEEE Directive. If you sell electrical or electronic devices in Germany, you must register with the Stiftung EAR (Foundation for Waste Electrical Equipment Register). This applies to anything powered by electricity — from charging cables to Bluetooth speakers to kitchen appliances.
As a seller of private label or unbranded products imported from outside the EU, you are the "first placer on the market" and carry full responsibility. Even as a reseller of branded products, you must verify that the manufacturer is registered.
Why does it matter?
Amazon actively checks WEEE registration. Products without a valid WEEE number are deactivated. Since 2023, Amazon requires proof during listing creation for relevant categories.
Consequence of violation
Fines up to 100,000 euros, sales ban by Amazon, and risk of cease-and-desist letters from competitors or the Stiftung EAR itself.
Your action step
Check whether your products fall under the ElektroG (when in doubt: yes, if electricity is involved). Register with Stiftung EAR (costs vary by device category and volume) and enter your WEEE number on Amazon. If you resell branded products, verify the manufacturer's registration through the EAR register.
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5. Product Safety: CE Marking and GPSR
What applies?
Products sold in the EU must comply with European safety requirements. For many product categories, CE marking is mandatory — it indicates that the product conforms to the relevant EU directives. This applies to toys, electronics, machinery, medical devices, and personal protective equipment, among others.
Since December 2024, the General Product Safety Regulation (GPSR) also applies. It requires that every product names a responsible economic operator with an EU address. This must be indicated on the product or its packaging. For importers from third countries (e.g., China), this means: you must appear as the responsible person with an EU address.
Why does it matter?
Amazon has massively tightened its compliance requirements in the wake of GPSR. Products without valid safety information are removed from the catalog. Customers can report products as unsafe, leading to immediate listing suspensions.
Consequence of violation
Missing CE marking or GPSR non-compliance can result in fines up to 500,000 euros. Market surveillance authorities can remove products from the market and order recalls. Amazon suspends listings and may permanently close the seller account.
Your action step
Ensure all your products have the relevant EU declarations of conformity. For imports from third countries: request CE documentation from the manufacturer and verify it. Designate a responsible economic operator with an EU address for every product and enter the information in your Amazon listings.
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6. Right of Withdrawal: 14 Days Are Non-Negotiable
What applies?
As a commercial seller, you must grant consumers a 14-day right of withdrawal. This begins from the day the buyer receives the goods. Within this period, the buyer can cancel the purchase without giving any reason and return the goods.
You must inform the buyer before the purchase about their right of withdrawal — including a correct withdrawal instruction and a model withdrawal form. While Amazon provides its own return policies, your statutory obligations as a seller remain unaffected.
Important: The right of withdrawal also applies to products that the customer has opened or used. There are only a few exceptions (e.g., sealed hygiene products whose seal has been broken, or custom-made products).
Why does it matter?
Missing or incorrect withdrawal instructions are the most common reason for cease-and-desist letters in German e-commerce. Specialized law firms and competition associations systematically check seller profiles on Amazon.
Consequence of violation
A cease-and-desist letter for incorrect withdrawal instructions typically costs 1,500 to 3,000 euros (legal fees plus declaration of discontinuance). Additionally, the withdrawal period extends to 12 months and 14 days if the buyer was not properly informed.
Your action step
File a legally compliant withdrawal instruction in your Amazon Seller Central under "Imprint/Legal texts." Use a specialized legal text generator (e.g., haendlerbund.de or IT-Recht Kanzlei) or hire a lawyer. Update the instruction whenever the law changes.
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7. Legal Notice (Impressum): Your Identity Must Be Visible
What applies?
Under the German Telemedia Act (TMG, Section 5) and the E-Commerce Directive, you are obligated as a commercial online seller to provide a legal notice (Impressum). This must include:
- Full name (for sole proprietors: first and last name)
- Physical address capable of receiving service of process (not a PO box)
- Email address
- Phone number or equivalent means of contact
- Commercial register number (if applicable)
- VAT identification number (if applicable)
- Person responsible under press law
On Amazon, you enter this information in your seller profile and under "Business Information."
Why does it matter?
A missing or incomplete legal notice is — alongside incorrect withdrawal instructions — the second most common reason for cease-and-desist letters. It is quick to check and easy to challenge.
Consequence of violation
Cease-and-desist costs of 1,000 to 2,500 euros. Fines up to 50,000 euros for persistent refusal. Amazon can restrict your seller account if mandatory information is missing.
Your action step
Enter all required information completely in your Amazon Seller Central. Match your legal notice on Amazon with the one on your own website (if you have one). Check quarterly whether all information is still current.
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8. Data Protection: GDPR Applies to Amazon Sellers Too
What applies?
The General Data Protection Regulation (GDPR) applies to anyone who processes personal data of EU citizens. As an Amazon seller, you process customer data — at minimum names and addresses for FBM orders, but also email addresses through buyer-seller messaging.
You need: - A privacy policy explaining what data you collect and how you use it - A record of processing activities (internal document) - Where applicable, a data processing agreement (DPA) with service providers who have access to customer data (e.g., tax advisor, shipping service, repricing tools)
Why does it matter?
The GDPR is actively enforced by data protection authorities. Since 2018, numerous fines have been imposed on online sellers. Cease-and-desist letters for missing or incorrect privacy policies also occur.
Consequence of violation
Fines up to 20 million euros or 4% of global annual turnover (whichever is higher). In practice, fines for small sellers range from 500 to 10,000 euros. On top of that, cease-and-desist costs are possible.
Your action step
Create a GDPR-compliant privacy policy and file it in your Amazon Seller Central. Maintain a simple record of your processing activities (a spreadsheet is sufficient). Conclude DPAs with all service providers that process customer data. Verify that your repricing tool operates in compliance with the GDPR — arbytrage.io does, as its servers are located in the EU and no customer data is stored.
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The Checklist: All 8 Obligations at a Glance
| No. | Obligation | Legal Basis | Registration | Typical Fine |
|---|---|---|---|---|
| 1 | Business registration | GewO | Trade office | Up to EUR 50,000 |
| 2 | VAT | UStG, EU VAT Directive | Tax office, BZSt (OSS) | Criminal proceedings |
| 3 | Packaging law | VerpackG | LUCID (ZSVR) | Up to EUR 200,000 |
| 4 | Electrical equipment | ElektroG | Stiftung EAR | Up to EUR 100,000 |
| 5 | Product safety | ProdSG, GPSR | No central registry | Up to EUR 500,000 |
| 6 | Right of withdrawal | BGB, EGBGB | No registration | EUR 1,500-3,000 (C&D) |
| 7 | Legal notice | TMG, DDG | No registration | Up to EUR 50,000 |
| 8 | Data protection | GDPR | No registration | Up to EUR 20M |
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Special Notes for Pan-EU Sellers
If you sell on multiple EU marketplaces (Amazon.de, .fr, .it, .es, .nl, .pl, .se, .be), several of these obligations multiply:
- VAT: OSS covers B2C sales, but if you store inventory via FBA in another country, you may need a local VAT registration there
- Packaging law: Each EU country has its own packaging legislation (e.g., CITEO in France, CONAI in Italy). You must register in every country where you place packaging on the market
- WEEE: WEEE registration is also country-specific
- Right of withdrawal: The 14-day period applies EU-wide, but the withdrawal instruction must be in the local language
This is one of the reasons many sellers start with the German marketplace and expand to other EU countries only after establishing a solid foundation.
For a complete startup guide, see: Start Selling on Amazon FBA in 2026 — The Complete Guide
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Frequently Asked Questions (FAQ)
Do I need a tax advisor for Amazon?
Not strictly speaking. You can submit VAT returns yourself through ELSTER (the German tax filing system). But with Pan-EU sales, OSS filings, and distinguishing between small business exemption and standard taxation, things get complicated quickly. A tax advisor experienced with e-commerce costs 100-300 euros per month and prevents expensive mistakes. Most sellers with monthly revenue above 5,000 euros benefit from professional advice.
Can I sell on Amazon using the small business exemption?
Yes, as long as you stay within the limits (below 25,000 euros in revenue in the previous year). However, keep in mind: as a small business, you cannot deduct input VAT, which is a disadvantage when purchasing large volumes of inventory. You also must not show VAT on invoices, which can be confusing for B2B customers. Many sellers switch to standard taxation once their revenue grows.
What happens if a competitor sends me a cease-and-desist letter?
You receive a cease-and-desist letter with a declaration of discontinuance and a cost invoice. You typically have 7-14 days to respond. Never sign a declaration of discontinuance without having it reviewed — have a lawyer check it. Often the demanded contractual penalties are excessive and can be negotiated. Legitimate violations should be corrected immediately.
Does the packaging law apply even with FBA?
Yes. Even though Amazon handles the physical shipping, you as the seller are the one placing the packaging on the market. You must register in the LUCID Register and license your packaging volumes — including the product packaging, the shipping box, and any fill material.
How do I find out if my product requires CE marking?
Check whether your product falls under one of the CE-relevant EU directives. The most common ones are: Toy Safety Directive, Low Voltage Directive (electronics), Machinery Directive, EMC Directive (electromagnetic compatibility). When in doubt, your local Chamber of Commerce (IHK) or a product safety consultant can help. For imported goods from China: demand the EU declaration of conformity and the test report from an accredited laboratory from your supplier.
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Summary
Selling on Amazon in Germany and the EU comes with clear legal obligations. Here are the eight points you must address:
- Business registration at your local trade office — no license, no legal trade
- VAT correctly filed — deliberately choose between small business exemption and standard taxation, use the OSS procedure for Pan-EU
- Packaging law compliance — LUCID registration and participation in a dual system
- Electrical equipment act observed — WEEE registration for all products involving electricity
- Product safety ensured — CE marking and GPSR compliance verified
- Right of withdrawal properly implemented — legally compliant instruction filed
- Legal notice fulfilled — all mandatory information entered completely
- Data protection under GDPR implemented — privacy policy, processing records, DPAs
None of these points are optional. Each one individually can lead to fines, cease-and-desist letters, or the suspension of your Amazon account. Invest the time now — it takes approximately 2-3 days total to set everything up. After that, you can focus on what truly counts: selling profitably.
For the complete getting-started guide, we recommend: Create Your Amazon Seller Account — Step-by-Step Guide