Amazon platform policy popularization:

From April 5, 2021, all sellers selling on Amazon UK, Germany, France, Italy, and Spain must have an invoice defect rate indicator of no more than 5% before they can sell on the UK, Germany, France, Italy, and West sites. Otherwise, the seller account will be suspended.According to rumors, the Amazon platform will continue to reduce the IDR indicator after 2022

What is "invoice defect rate"?

Invoice Defect Rate, referred to as IDR, Chinese translation for the invoice defect rate . It is mainly used for B2B transactions between sellers.

According to the invoicing policy requirements of Amazon Business Europe Station, all sellers are required to provide valid VAT invoices for this order within one working day after the delivery of each company's first order is confirmed. If the seller cannot provide a VAT invoice, a receipt must also be provided to the buyer.

If the seller fails to provide an invoice or receipt within one business day of confirming the order is shipped, it will be recorded in the invoice defect rate.

IDR refers to the proportion of orders that fail to provide VAT invoices to business sellers within one day after delivery.

PS: A working day is a day, Monday to Friday is counted as a working day

How can a seller check the IDR of his store
PART. 0 1 check mailbox

First of all, if the critical value of IDR is about to exceed 5% or has exceeded 5%, the seller will receive a warning email from the Amazon platform. It is recommended that the seller check the mailbox at intervals.

PART. 0 2 View on the "Account Status" page

Go to the account status page on the store page, click [Invoice Defect Rate (IDR)], scroll down and click [Download Report]

It is recommended that the seller should check twice a day

How to prevent the IDR index from falling below 5%

Inspection period: The order date is within the past 7 days to 14 days.

In order to avoid the invoice defect rate exceeding 5%, it is best for the seller to upload the invoice or receipt within one working day after the order is confirmed for delivery.

●If the seller has a VAT number (the seller does not have a compliant VAT number, it is recommended that the seller register as soon as possible), there are 4 ways to upload:

1. Use Amazon's VAT Calculation Service (VCS) to let Amazon automatically create and upload invoices. [Amazon provides this service for free for sellers]

After the seller activates the VCS service, if the country where the order is shipped has a valid tax ID number, Amazon will generate and upload an invoice on your behalf in a timely manner. If the seller's order is shipped directly from China to the EU, Amazon VCS will also help the seller upload the receipt.

2. Manual upload invoice specific steps

Manually upload your invoice via the [Upload Invoice] (or [Manage Invoice]) button on the Manage Orders page or the Order Details page.

– find out business orders

①.Manual screening

Manage order page for Seller Fulfilled & Amazon Fulfilled → No invoice uploaded → "Enterprise Buyer" filter option

②. Order report screening

first step:

Seller Central→Orders→ Order Reports→

"Add or remove order report columns" page → check the [Commercial Order] → [Bill] → [Buyer Tax Identifier] → [Buyer Company Name] option

Step two:

Seller self-delivery orders: Seller Central→Orders→[Order Report

Fulfillment by Amazon Orders: Seller Central → Data Reports → Inventory and Sales Reports → Sales → [All Orders] Report and "Fulfilled by Amazon Shipments"

– Find corporate buyer VAT information

Step 1: Seller Central → Orders → Order Reports → "Add or Remove Order Report Columns" page → Check [Commercial Orders] → [Bills] → [Buyer Tax Identifier] → [Buyer Company Name] option (found Buyer Tax ID)

Step two:

Seller self-delivery orders: Seller Central→Orders→[Order Report]

Amazon Fulfilled Orders: Seller Central → Data Reports → Inventory and Sales Reports → Sales → [All Orders] and "Amazon Fulfilled Shipments"

– Make invoices

Example Amazon invoice:

Example receipt:

– Upload invoice/receipt

The upload steps are as follows:

▲ Pay attention when uploading

1) Must be a PDF file, not in png, .jpg image format

2) To upload an invoice or receipt, you need to select "Invoice" to upload a credit note, then select "Credit Note"

3): Invoice No./Receipt No./Credit Note No.

3. Let your cooperative service provider upload in batches

Choose to activate the Amazon VAT calculation service, let Amazon calculate the VAT, and the service provider uploads the invoices or calculates the VAT by yourself or the service provider, and uploads the invoices in batches through the service provider.

4. Claim UK and EU VAT exemption

If the seller's business does not need to register for VAT in the EU and the UK, you can choose 〖Declaration for VAT Registration Exemption〗to declare VAT exemption, and Amazon will automatically generate a receipt for the order.

The Amazon platform is expected to reduce the invoice defect rate IDR index again after 2022. Here, the editor recommends that sellers upload VAT invoices and receipts in time. If the index is exceeded and the account is deactivated, the loss outweighs the gain.
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