Detailed explanation of Amazon invoice defect rate and its importance

Invoice Defective Rate (IDR) is a new performance indicator established by Amazon to ensure that business buyers receive invoices. This indicator not only applies to Amazon Business sellers, but also affects all sellers who receive orders from business buyers. The Invoice Defect Rate is designed to evaluate whether sellers provide invoices or receipts to Amazon Business buyers within the specified time.

Invoice defect rate calculation rules

The calculation period for the Invoice Defect Rate (IDR) is based on working days (i.e. Monday to Friday). Specifically, if the seller confirms the shipment of the order between 00:01 and 23:59 on a certain working day, the corresponding invoice or receipt must be uploaded before the end of the next working day. For example, an order confirmed to be shipped on Monday should upload an invoice before 23:59 on Tuesday; and an order confirmed to be shipped on Friday needs to upload an invoice before 23:59 on the following Monday.

Invoice defect rate FAQ

Update frequency

Invoice defect rate (IDR) data is updated daily.

Is it limited to Amazon Business sellers?

No, even non-Amazon Business sellers may receive orders from business buyers and need to provide invoices or receipts for this.

How to avoid invoice defects?

As of March 20, 2020, all sellers must provide a valid VAT invoice or receipt to Amazon Business buyers. Amazon allows three ways to upload invoices: using Amazon’s VAT Calculation Service (VCS), manually uploading through Seller Platform order management, or choosing a third-party service provider.

The importance and application scope of VAT invoices

Amazon VAT invoices are not only important to buyers, but also proof that sellers fulfill their tax obligations. It can help buyers legally enjoy tax rebate policies, conduct tax accounting, and help companies conduct procurement management and cost control. In addition, when selling goods on the German website, sellers also need to understand and comply with the requirements of German VAT invoices.

Advantages of electronic invoices

Electronic invoices are gradually becoming mainstream due to their convenience, efficiency and security. Amazon sellers can register a tax account, use invoicing software, and set up the invoice content, and then send electronic invoices to buyers through the messaging system of the Amazon platform or email.

Conclusion

Whether it is the invoice defect rate or VAT invoice, they are important tools to ensure the rights and interests of both parties to the transaction. Sellers should pay attention to these indicators and actively take measures to improve their service quality to stand out in the fiercely competitive market environment.

The above content is compiled from multiple articles about Amazon’s invoice policy.