Invoice Defect Rate (IDR) measures the invoicing experience you provide to Amazon Business customers who require invoices or receipts for tax and accounting purposes. This is 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, irrespective of public holidays. For example, if you confirm shipment of an order between 00:01 a.m. and 23:59 p.m. on Monday, you must upload an invoice for that order by 23:59 p.m. on Tuesday. If you confirm shipment of an order between 00:01 a.m. and 23:59 p.m. on Friday, you must upload an invoice for that order by 23:59 p.m. on Monday.
You are required to maintain an IDR under 5%.
You can view your IDR on Account
Health page. In addition, you can also download a report to see which orders
contributed to your IDR. To download the report:
To ensure that we are delivering a great experience to our customers, Amazon might take action on your account if your IDR does not comply with our target.
Amazon Business customers expect timely invoices for all their purchases and it is in your best interest to provide a good customer experience to them. They purchase more, return less, and the segment is growing fast.
You can reduce your IDR 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 the 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 the 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 five options described in FAQ 5 to provide invoices to customers. Invoices sent over email will not be considered. This will affect your IDR negatively.
This is likely because the VAT calculation service cannot generate invoices for all your orders. The VAT calculation service cannot generate invoices for orders dispatched from countries within the EU or the UK 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.
To benefit from automated invoicing on all your orders and reduce your IDR to 0%, add a valid VAT registration number for every country within the EU or the UK that your orders are shipped from. This also includes countries where you allow Fulfilment by Amazon to store your inventory. If you need help with VAT registration and filing in Germany, France, Italy, Spain, UK, Poland, or Czech Republic, VAT Services on Amazon is a VAT compliance solution that allows you to manage your obligations online through Seller Central.
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, IDR is only calculated for orders that were placed during the seven-day period starting two weeks ago.
You can get a buyer’s VAT information from the
relevant reports. To do so, go to Add or remove order report columns, enable
Business orders, Buyer tax identifiers,
Billing, and Buyer company name, and
save your changes. Only users who have permissions to manage orders and order reports
can make this change. After you have saved the settings, the following columns will
start appearing in the relevant reports:
For MFN orders, you will find all columns in Order reports. For FBA orders, you will find columns (1) to (5) in All Orders report and column (6) (bill-address-1) in Amazon Fulfilled Deliveries – Tax Invoicing.