“32,000” - not a cold string of numbers, but the total number of bad actors that Amazon has gone after globally over the past few years.

Recently, Amazon released its first Trusted Shopping Experience Report, releasing an extremely clear signal to the industry: the platform is sweeping up non-compliant sellers with unprecedented vigor to make room for serious merchants.

At the same time, Amazon announced in Spain's Zaragoza province invested more than 100 million euros to build a new logistics center ZAZ8, TikTok Shop landed in Brazil nearly a year after the high growth of live with goods business. Every move of these giants is telling us that the next round of global e-commerce growth will be “compliance” as the ticket.

Today, rather than fueling anxiety, we’re here to help you understand the platform’s “unwritten rules” outlined in this report and outline the three key red lines that cross-border sellers must adhere to in 2026 regarding financial and tax compliance. If you’re struggling with European VAT, global company registration, or financial and tax compliance, feel free to reach out anytime.(Micro letter: qcygscszk, cell phone: 18676749275)

I. Amazon’s Report Sends Three Messages: Compliance Isn’t a Matter of “Whether or Not,” but of “How to Survive”

Sign #1: The Fight Against Counterfeits Enters the Era of “AI + Cross-Border Accountability”

According to the report, Amazon’s global anti-fraud team has held more than 32,000 bad actors accountable across 14 countries. In 2025 alone, the company shut down more than 100 websites featuring fake reviews and scams. Today, the platform’s AI-powered predictive early-warning system can identify high-risk products and accounts within milliseconds.

This means that tactics involving “exploiting loopholes” or “operating in gray areas” are now completely ineffective. AI won’t miss a thing, and transnational law enforcement networks won’t let anyone slip through the cracks. Whether your account is in good standing is no longer a secret.

Sign #2: From “Account Suspension” to “Accountability”—The Cost of Violations Has Skyrocketed

In the past, sellers feared nothing more than having their accounts suspended and losing sales. But now, Amazon has begun working with law enforcement agencies in various countries to “bring unscrupulous sellers to justice.” Once found to be involved in counterfeiting or fraud, you may face not only account suspension but also legal action and even criminal liability.

Sign #3: The Platform Favors High-Quality Sellers; the Golden Age of Branding Has Arrived

The core logic of the report is the “trustworthy shopping experience”—the platform must ensure that consumers can shop with confidence. To achieve this goal, Amazon will inevitably direct traffic toward merchants who are fully licensed, comply with brand regulations, and maintain transparency in their financial and tax affairs.

From this perspective, every crackdown on fake reviews and counterfeit goods clears the way for compliant sellers.

II. Behind Spain’s Market Entry and TikTok’s Rapid Expansion in Brazil: Three “Make-or-Break” Lines for Global Tax Compliance”

If Amazon’s report is a “restrictive constraint,” then the platforms“ global expansion is a ”new map.” But are you prepared to navigate the financial and tax hurdles involved in entering these markets?

Red Line ①: EU Value-Added Tax (VAT) — Local Tax and Finance Representative + Financial Guarantee

News reports indicate that Amazon is aggressively expanding its warehouse network in Spain, which means more sellers will begin using the Spanish FBA or Pan-EU program. Meanwhile, the Italian tax authority has recently introduced strict guarantee requirements for non-EU sellers (including Chinese companies): not only must you hire a tax representative officially registered with the Italian tax authority, but you must also provide an additional personal financial guarantee of at least 50,000 euros, valid for 36 months.

You might ask, “Does Spain require this?” At present, Spain has not yet made personal financial guarantees mandatory, but Italy has taken the lead, sending a strong signal to the entire EU—in the future, background checks on tax representatives and financial guarantees will become standard practice. Planning ahead is the only way to avoid being caught off guard when countries like Spain and France suddenly “follow suit.”

Red Line ②: Company Registration for Emerging Sites—A Local Entity Is the Ticket to Entry

Let’s now turn to the trends in Latin America. TikTok Shop is experiencing rapid growth in Brazil and has already attracted a large number of Chinese sellers eager to get started. However, Brazil’s local tax laws are extremely complex, and there are restrictions on direct cross-border shipping from China. To capitalize on the traffic boom, the most reliable approach is to register a local Brazilian company and operate through that entity. But this, in turn, involves a series of issues, such as foreign ownership restrictions, obtaining a local tax ID (CNPJ), and accounting requirements.

Similarly, Amazon’s establishment of a logistics center in Spain means that Spain will become a fulfillment hub for Southern Europe. If you plan to expand your operations in Spain and throughout Southern Europe, having a local Spanish company can significantly reduce tax costs and improve logistics efficiency.

Red Line ③: Platform Reporting and Account Security—Tax and Financial Compliance Is the “Anchor” of Account Health”

Amazon’s report explicitly lists “fake reviews” and “fraudulent activities” as targets for enforcement. Furthermore, a wide range of financial and tax non-compliance issues—such as registering a company using a fake address provided by a service provider, sharing the same set of documents across multiple stores, or unusual fund transfers between associated accounts—will result in penalties ranging from a warning to permanent account suspension and fund freezing once detected by the AI system, with no opportunity for appeal.

You’ll find that the days when “you could generate sales just by faking orders” and “you could boost sales volume simply by opening more stores” are completely over. In the future, only by relying on legitimate overseas entities, complying with accurate tax filings, and establishing a clear flow of funds will you be able to steadily reap the benefits of the platform’s expansion. If you’re struggling with European VAT, global company registration, or tax compliance, feel free to contact us anytime.(Micro letter: qcygscszk, cell phone: 18676749275)

III. Three “Do It Now” Actions for Cross-Border Sellers in 2026”

1. Check Now: Is Your European VAT Representative Compliant?

If you are a Chinese seller using FBA in EU countries such as Italy or Spain, please confirm the following immediately:

• Has your tax representative been officially registered with the local tax authority?
• Have you submitted the required personal financial guarantee (if applicable)?
• Does the guarantee document cover a period of more than 36 months, and does the amount meet the required threshold?

2. Assess Immediately: Do You Need to Register a Local Company?

If you plan to establish a long-term presence in markets such as Brazil and Spain, rather than paying high annual cross-border taxes or logistics fees, you’re better off registering a local company. By combining a “local company + local bank account + local warehouse,” you can not only gain preferential treatment in platform traffic allocation but also optimize your tax structure.

3. Check Now: Are Your Account Links and Fund Flows “Clean”?

Refer to the types of violations mentioned in the Amazon report and check whether any of the following situations apply to you:

• Can multiple stores use the same credit card or payment account?
• Is the registered address a virtual address (where physical mail cannot be received)?
• Does the company's legal entity information differ from what's in the backend?

If any of the above issues are present, please address them as soon as possible or prepare an alternative plan.

IV. Why Choose Qicaiying? Four Core Advantages to Support Your Global Business

Faced with increasingly stringent platform regulations and complex, ever-changing international tax laws, you need more than just a one-time service—you need a professional partner who can stand by your side for the long haul. Since its inception, Qicaiying has been committed to serving as the “personal compliance advisor” for cross-border entrepreneurs.

🔹 1. A team of experts to guide you throughout the process

We have a professional team of nearly 400 people, comprising experienced attorneys, accountants, tax professionals, and cross-border business consultants, who handle thousands of high-end cases annually. From structural design (such as choosing between a U.S. LLC or C-Corp, a European limited liability company, etc.) and name availability checks to government filings, we provide “one-on-one” customized solutions to help you avoid legal risks from the outset and steer clear of unnecessary detours.

🔹 2. digitally empowered, smart and efficient

We have invested 20 million to develop our proprietary digital system, “Yichuangbao,” which standardizes processes and provides progress visualization—enabling real-time tracking of steps such as company registration, tax ID application, and bank account opening. The system incorporates AI-powered analysis to quickly identify client needs (such as cost estimates for “cross-border-to-domestic” transitions) and helps generate optimal solutions, making complex and cumbersome cross-border procedures clear, transparent, and more efficient.

🔹 3. Eco-links, extra value

We connect with over 500,000 entrepreneurs and domestic and international association platforms (such as the Shenzhen Cross-Border E-Commerce Association and the Chinese General Chamber of Commerce in Hong Kong), and regularly host events such as cross-border business salons and seminars on finance, taxation, and law. Here, you can not only resolve registration issues but also connect with ecosystem partners in supply chain, logistics, and payments, creating new business opportunities and ensuring you no longer have to go it alone when expanding overseas.

🔹 4. Full-cycle accompaniment for worry-free sailing

Our services go beyond “successful registration” to provide full-lifecycle support: initial free assessment of market entry strategies (such as “E-commerce Opportunities During Ramadan in Indonesia”); mid-stage assistance with company registration, bank account opening, and tax ID applications (such as South African VAT and U.S. EIN); and ongoing support for financial and tax filings, annual reviews and maintenance, and compliance consulting (such as VAT filings after onboarding with Takealot). We are a long-term, reliable partner for our clients’ overseas expansion, allowing you to focus on your core business without any worries.

In Closing: Compliance Is Not a Cost, but an Investment

Many people view “compliance” as an extra burden—a waste of money they have no choice but to spend. But the truth revealed by this round of massive shakeups and expansions among global platforms is this: the competitive barriers created by compliance are rising. Sellers who build their brands diligently and pay taxes in good faith will enjoy fewer competitors, lower advertising costs, and more stable long-term cash flow.

Even if you’re currently just running a small shop, starting today, register it under a legitimate U.S. company and operate it using a clean set of documents. You’ll find that the issues causing you anxiety—such as account suspensions, frozen funds, and tax audits—will become a thing of the past.

At Qicaiying, we interact with a large number of successful cross-border sellers every day. They all share one common trait: they’re willing to invest professional resources in compliance, entrusting the “hassles” to reliable partners so they can focus on their products, content, and brand.

If you have questions about European VAT guarantees, would like to learn about the process of registering a local company in Brazil or Spain, or need to assess the financial and tax risks of your current business, please feel free to contact us anytime.

Add us on WeChat now:(Micro letter: qcygscszk, cell phone: 18676749275), to get professional one-on-one consultation.

Qicaiying—Empowering Every Entrepreneurial Dream. We make cross-border compliance simple and help you conduct global business with greater peace of mind.