Amazon and Individual Entrepreneurs in Georgia: How to Receive Payments, Save the 1 % Tax, and Avoid Losing on Commissions

In short — a 30‐second solution

If you sell on Amazon and live in Georgia, register as an Individual Entrepreneur, apply for small business tax (1 %), set up a convenient payout channel (a local bank account through Amazon, Seller Wallet, or an intermediary like Payoneer/WorldFirst/etc.), make a test withdrawal, and create a spreadsheet (date, USD amount, fees, exchange rate, total in GEL). This will minimize unexpected losses and simplify reporting.

How Amazon Pays—Key Facts

• Amazon pays sellers via electronic bank transfers (ACH / bank transfer / wire) depending on the marketplace and country.
• For international sellers, Amazon offers additional tools: Seller Wallet / Seller Wallet transfers and payment service provider (PSP) options, as well as integrations with services that provide local receiving accounts (Payoneer, WorldFirst, etc.).
• If your country isn’t listed in the list of countries for direct bank transfer, Amazon recommends using PSPs/intermediaries (e.g., Payoneer) or Amazon Seller Wallet as a buffer.

Why Sole Proprietorship + Small Business (1%) is often the best structure for freelance sellers

• Individual Entrepreneur (IE) is a simple legal framework: quick registration, easy accounting, and compatibility with banking.
• The small business regime (1 %) provides a very low tax burden on turnover, subject to a certain limit (check the threshold with an accountant before applying). This is especially advantageous for small and medium‐sized sellers, whose main concern isn’t taxes, but commissions and currency conversion. (Tip: apply for SBS in advance if you plan on regular income — that way, you'll be right in the market with a favorable rate.)

What payment options should I consider (pros/cons)

Direct bank transfer (bank account in the marketplace country or local account)

• Pros: Simplicity, direct payment acceptance.
• Cons: For international transfers—SWIFT/correspondent fees, conversion based on bank margin; in some cases, Amazon requires an account in the marketplace country.

Seller Wallet / Amazon Seller Wallet

• Pros: Amazon offers a "wallet" with conversion and transfer capabilities (sometimes more cost‐effective than direct SWIFT), and manages payouts within Seller Central.
• Cons: Transfers from the wallet to a local bank are not available to all countries — check the list of supported countries/currencies in your Seller Central account.

Intermediaries / PSPs (Payoneer, WorldFirst, Wise, etc.)

• Pros: They provide local receiving accounts (USD/EUR/GBP), often offer favorable FX rates, and convenient withdrawals to local cards/accounts. Payoneer specifically advertises integration for Amazon sellers.
• Cons: KYC required, sometimes account type restrictions; it’s important to confirm compatibility with the Amazon marketplace where you sell.

A practical step‐by‐step guide — from registration to first payment

Step A — legal preparation

1. Register as an individual entrepreneur in Georgia through the Public Service Hall or through a trusted representative/agent. It’s quick and inexpensive.
2. Consult with an accountant and, if you plan on regular sales, apply for Small Business Status (1 %) — early on, before large sums of money start coming in regularly.

Step B — Setting Up an Amazon Account

In Seller Central → Account Info → Deposit Methods, add your receiving account details. If Amazon doesn’t allow you to specify a direct Georgian bank account, use the “bank account in the marketplace country” option through a third‐party provider (Payoneer/WorldFirst) or enable Seller Wallet if available for your account.

Step C — Select a Provider and Complete Verification

Open an account with your chosen PSP (Payoneer/WorldFirst/Wise, etc.), obtain your local receiving account details (USD/EUR), and complete KYC. Payoneer describes the Amazon connection process in detail.

Step D — Test Withdrawal (Required)

Make a test payment — wait for the first disbursement from Amazon and see how and when the money arrives: how long Amazon holds, what correspondent fees the bank/PSP deducted, what exchange rate was applied when converting to GEL. Record everything in a spreadsheet. (The test withdrawal is the most important step.)

Step E — Taxes and Recordkeeping

Keep records: sale date, USD amount, Amazon fees, disbursement amount, PSP/bank fees, conversion rate, and the total in GEL. Use this data to calculate the 1 % tax (if using SBS) and report your transactions. Keep SWIFT payment orders and bank statements — this is important for audits.

Real‐world scenario example

Let’s say Amazon charged $1,000 in disbursements in a month. Path: Amazon → Payoneer receiving USD → withdrawal to Georgian card/account.

• Amazon transferred $1,000 to Payoneer (without an Amazon fee for the Payoneer transfer, but there was a seller fee before).
• Payoneer charged a fixed commission or spread on the conversion (e.g., 0.5—2 %, depending on the option).
• The recipient bank (if you’re withdrawing to a Georgian card) could charge a fixed fee for incoming SWIFT (if applicable) — the total on the card ≈ (1,000 - fees) × net rate = amount in GEL.

Conclusion: run a test and set aside a 2—5 % reserve before scaling.

Common mistakes beginners make and how to avoid them

• Expecting the money to arrive “like PayPal” — Amazon pays according to a disbursement → transfer schedule, which takes time; business accounts typically receive payments every 14 days.
• Failing to make a test transfer — online reviews often don’t match your specific banking rates. A test is crucial.
• Installing an inappropriate account name — the details in Amazon and the PSP/bank must match the recipient name, otherwise payments will be rejected.
• Failing to apply for SBS in advance — apply for this status if you plan to make regular sales.

Control metrics and a “do it now” checklist

• Register as an Individual Entrepreneur in Georgia.
• Discuss the possibility of SBS (1 %) with your accountant and submit an application if you meet the requirements.
• Check available deposit methods in Seller Central → try adding a Payoneer/WorldFirst receiving account or enable Seller Wallet.
• Complete KYC with your chosen PSP (Payoneer/WorldFirst/Wise).
• Wait for the first disbursement and perform a test withdrawal → record the following: date, USD amount, Amazon fee, PSP fee, bank fees, exchange rate, and total in GEL.
• Set up an accounting spreadsheet and agree on a tax return form with your accountant.

Helpful tips (life hacks from sellers)

• If Amazon requires an invoice in the marketplace country, use a Payoneer / WorldFirst receiving account — this is common practice for international sellers.
• Keep some funds in USD in your PSP balance and transfer them to GEL when the exchange rate is favorable.
• Plan your payouts to minimize the impact of fixed correspondent fees (small, frequent payouts are worse than infrequent, large ones).
• Regularly check the Seller Central → Payments page and Amazon Seller Wallet for alerts — Amazon occasionally updates payout methods and currencies.

Conclusion

Selling on Amazon is compatible with the individual entrepreneur form in Georgia. The key tasks are: choosing the right payment channel (bank account, Seller Wallet, or PSP like Payoneer), testing real transfers, and registering for the tax regime (SBS 1 %) if you qualify. The most valuable step is a test withdrawal: it will show your actual commissions and net GEL total.