US Tax Filing for E-Commerce Sellers Abroad
Running an e-commerce store — whether on Amazon, Shopify, Etsy, or your own platform — while living abroad creates specific tax challenges: inventory cost of goods tracking, platform fee deductions, multi-currency sales, self-employment tax, and FBAR for foreign payment accounts. Whether you're drop-shipping from Asia or running a Shopify brand from Europe, we handle the complete e-commerce seller tax picture.
Get started with your filingWho this is for
- ✓ US citizen or green card holder e-commerce sellers living abroad
- ✓ Amazon FBA, Etsy, or Shopify sellers who live outside the United States
- ✓ Those selling physical or digital products internationally while being tax-obligated to the US
- ✓ Online sellers with PayPal, Stripe, or foreign payment processor balances
What this filing may involve
Every situation is different. The forms below commonly apply — your specific filing may vary.
- 1 Form 1040 with Schedule C — e-commerce profit and loss, including COGS
- 2 Schedule SE — self-employment tax on net e-commerce profit
- 3 Form 2555 — FEIE on qualifying foreign-earned e-commerce income
- 4 1099-K reconciliation — Amazon, Stripe, PayPal platform income statements
- 5 FinCEN Form 114 (FBAR) — for foreign Stripe/PayPal accounts or business bank accounts
Documents usually needed
- 📄 Annual sales summaries from all selling platforms (Amazon seller central, Shopify, Etsy)
- 📄 1099-K forms from payment processors (Stripe, PayPal, Amazon Payments)
- 📄 Cost of goods sold records — supplier invoices, shipping, fulfilment costs
- 📄 Business expense records — advertising, software, platform fees
- 📄 Foreign payment processor or bank account statements
How Nomadic.Tax works
AI-assisted preparation with licensed professional review — every time.
We reconcile all platform income reports and 1099-Ks against your actual revenue
Schedule C is prepared with COGS, platform fees, advertising, and other deductible expenses
FEIE is applied to qualifying foreign-earned income to reduce income tax
A licensed CPA reviews the complete return including FBAR obligations before filing
When human review matters
- ⓘ Inventory and COGS calculations require careful tracking — we can work with Shopify, Amazon, and QuickBooks exports
- ⓘ 1099-K shows gross amounts before platform fees — deducting fees on Schedule C reduces taxable income
- ⓘ Amazon FBA fees, storage fees, and fulfilment costs are all deductible business expenses
Deeper reading on NomadIcTax.org, our educational resource site
[INSERT: customer testimonial, e.g. "e-commerce seller living in Southeast Asia in Bangkok, Thailand, saved money and stress using Nomadic.Tax"]
- e-commerce seller living in Southeast Asia, Bangkok, Thailand
Relevant plans
Choose the package that best fits your situation, or view all plans.
- ✓ Everything in Standard
- ✓ Schedule C & SE for self-employment
- ✓ Multiple income sources and currencies
- ✓ Everything in Premier
- ✓ Foreign Earned Income Exclusion (Form 2555)
- ✓ Foreign Tax Credit (Form 1116)
- ✓ FBAR filing (FinCEN 114) included
Frequently asked questions about US Tax Filing for E-Commerce Sellers Abroad
Can I claim FEIE on e-commerce income?
Potentially yes. E-commerce income is considered earned income if you actively operate the business. If you're actively managing the store while living abroad, FEIE may apply. Purely passive income from a business would not qualify. The key test is whether the income is earned through your personal services.
How do I handle inventory for tax purposes?
Inventory is accounted for through Cost of Goods Sold (COGS) on Schedule C. COGS reduces your gross profit, which is the basis for both income tax and self-employment tax. We work with your inventory management records to ensure COGS is accurately calculated.
Do I owe sales tax for US customers?
US sales tax (or use tax) for online sellers is a separate matter from income tax. Under the South Dakota v. Wayfair ruling, states can require out-of-state sellers with economic nexus to collect sales tax. This is separate from your income tax filing obligations.