Invoice Defect Rate (IDR) measures the invoicing experience you provide to Amazon Business customers who require invoices or receipts for tax and accounting purposes, as explained in Amazon Business Invoicing Policy.
IDR is a percentage of orders for which you did not upload an invoice by midnight on the first business day following the day you confirmed shipment of that order. IDR calculation assumes Monday to Friday as business days. For example, if you confirm shipment of an order between 00:01 am and 23:59 pm on Monday, you must upload an invoice for that order by 23:59 pm on Tuesday. If you confirm shipment of an order between 00:01 am and 23:59 pm on Friday, you must upload an invoice for that order by 23:59 pm on Monday.
We recommend that you maintain an IDR below 5%. Starting from 5 April 2021, all Selling Partners will be required to adhere to this performance target.
You can view your Invoice Defect Rate on Account Health page. In addition, you can also download a report to see which orders contributed to your Invoice Defect Rate. To download the report:
We do not currently take action on your account if your Invoice Defect Rate is above the target of 5%. However, starting from 5 April 2021, failure to adhere to this performance target may result in account deactivation. We therefore recommend that you maintain an IDR below 5%.
Amazon Business customers expect timely invoices for all of their purchases and it is in your best interest to provide a good customer experience to these customers as they purchase more, return less, and the segment is growing fast.
You can reduce your Invoice Defect Rate through one of the following ways:
Option 1: Enroll in Amazon’s VAT Calculation Service and let Amazon create invoices on your behalf automatically. IDR is 0% when Amazon’s VAT Calculation Service generates an invoice on your behalf.Check column 1 of this page to learn more about it.
Option 2: Enroll in Amazon’s VAT Calculation Service and choose the settings to upload your own invoices via your solution provider.
Option 3: Upload your invoices via your solution provider without enrolling in Amazon’s VAT Calculation Service. Check column 3 of this page to learn which solution providers support this feature and how you can activate it.
Option 4: Upload your own invoices manually from Manage Orders or Order Details page.
Option 5: If you are exempt from VAT registration in both EU and the UK, declare your VAT exemption status and let Amazon issue receipts on your behalf automatically.
Yes, as per Amazon Business Invoicing Policy, if you are not required to apply VAT on your sales, you are required to provide a receipt for each order from an Amazon Business customer. You can do this either manually on Manage Orders page or via your solution provider. Sellers exempt from VAT registration in both EU and the UK can let Amazon issue receipts on their behalf at no cost by declaring their VAT exemption
No. As per Amazon Business Invoicing Policy, you should use one of the four options described above in FAQ 5 to provide invoices to Customers. Invoices sent over email will be considered missing, and will affect your Invoice Defect Rate negatively.
This is likely because the VAT Calculation Service cannot generate invoices for all your orders. The VAT Calculation Service cannot generates invoices only for orders dispatched from a European country for which you have not added a VIES-valid VAT number in Seller Central. For example, if a shipment is dispatched from France but you have not added a valid VAT number for France, the VAT Calculation Service will not issue an invoice for this shipment.
Yes. Since 20th March 2020, the Amazon Business Invoicing Policy requires that for all orders placed by Amazon Business customers, you must proactively upload invoices on Seller Central. However, Invoice Defect Rate is only calculated for orders that were placed during the seven-day period starting two weeks ago.