This new regulation will be implemented soon! If this indicator is higher than 5%, the sale will be banned!

This new regulation will be implemented soon! If this indicator is higher than 5%, the sale will be banned!



Plato once said that well begun is half done. But sellers had only been working for less than a month when Amazon forced them to purchase insurance and verify their accounts through video. Even Amazon's early reviewer program was about to be cancelled. As the tides rise, Amazon recently sent out another email, and sellers suffered again .

 


If the standard is not met, the product will be discontinued.


Recently, some sellers received an email notification from Amazon. The main content of the email is:
 
Starting from April 5, 2021 , sellers selling in the UK, Germany, France, Italy, Spain and other sites must achieve an invoice defect rate of less than 5%. Failure to comply with this performance requirement may result in your seller account being suspended from selling privileges .
 
 
From the email, it can be seen that sellers need to reduce the invoice defect rate to below 5% before April 5, 2021, otherwise they will be banned from selling.
 
So what is the invoice defect rate?
 
The invoice defect rate is calculated for corporate customer orders. It refers to the proportion of orders that do not provide invoices or receipts within the first working day after the order is confirmed to be shipped . According to the requirements of Amazon Business Europe, sellers need to provide the corresponding VAT invoice within one working day after the corporate customer confirms the delivery. Even if the seller has not opened Amazon Business, as long as the seller receives an order from a corporate customer, the seller is required to provide invoices and receipts in accordance with the corresponding requirements.
 
It is understood that Amazon introduced the invoice defect rate indicator in 2020, and at that time it had informed sellers that the invoice defect rate must not exceed 5%.
 
Now that the regulations are clear, how can sellers check their invoice defect rate?
 
First log in to the seller platform, then click Performance, select Account Status, select Customer Service Performance, and then select Invoice Defect Rate . On this interface, sellers can check their invoice defect rate.
 
 
Faced with the imminent invoice defect rate problem, how should sellers deal with it?
 


How to solve it?


1. Sellers can use Amazon's VAT Calculation Service to let Amazon automatically create and upload invoices for you. It should be noted that sellers must have a valid tax number verified in the EU VAT Information Exchange System or a UK VAT number to use Amazon's VAT Calculation Service.
 
 
After the seller activates the VAT Calculation Service, if the country of origin of the order has a valid tax number, Amazon will upload the invoice on behalf of the seller. If the seller ships from China to the EU, the VAT Calculation Service will upload the receipt for the seller.
 
It is worth noting that if the seller has inventory in a certain country but does not have the tax number of that country , the VAT Calculation Service will not be able to perform the invoice upload service on the seller's behalf , and the seller will need to upload this part of the order himself.
 
2. If the seller does not need to register for VAT in the 27 EU countries and the UK, the seller can click the Report VAT registration exemption option, declare the VAT exemption, and Amazon will automatically generate a receipt for the seller.
 
3. Sellers can also choose a service provider and ask the service provider to upload invoices in batches for you.
 
4. Sellers can also choose to manually upload invoices. Specific operation: click the Manage Order page or Order Details page, find and click the Upload Invoice or Manage Invoice button to upload the invoice.
 
The editor has also compiled some problems and solutions for sellers regarding issuing VAT invoices and using tools.
 


Frequently asked questions



Q&A

0 1

Q: What if all the goods are shipped from China?


A: If your products are shipped outside the EU and UK, then you may not need to generate a VAT invoice in the EU and UK. You can log in to the seller platform or consult the tax department for details. But even if you don’t need to issue a VAT invoice, you still need to provide a receipt for the corporate seller. In this case, you can click the VAT registration exemption option to declare the VAT exemption, and Amazon will automatically generate a receipt for the seller.
0 2

Q: According to the UK's new e-commerce VAT bill, Amazon will withhold and generate invoices for sellers. Do I still need to upload invoices to ensure that my invoice defect rate is less than 5%?


A: Yes, the new UK e-commerce VAT Act only applies to individual buyers, and Amazon will only generate invoices for individual buyers who meet the applicable conditions. For corporate buyers who are not subject to the Act, sellers still need to issue VAT invoices to ensure that their invoice defect rate is less than 5%.
0 3

Q: Does Amazon's VAT calculation service require a seven-country tax number to activate?


A: No, you only need a valid tax number to activate it. If you have inventory in a country but do not upload a tax number, Amazon VAT calculation service will not be able to generate invoices for orders shipped from that country.


As Amazon's rules become more and more complete, sellers need to be more careful. For sellers who meet the standards, this new rule has no impact. For sellers who do not meet the standards, the top priority is to upload invoices to reduce the invoice defect rate and ensure that they meet the standards and are not banned from selling.
 
What do sellers think about the invoice defect rate? Welcome to leave comments to share ~
 
Text✎ Cai Cai/
Statement: The title and original text of this article shall not be modified when reprinting, and the source and original link shall be retained


<<:  Amazon discriminates? Canada restricts inventory again, but relaxes this site?

>>:  Amazon is accused of infringement! Suspected of abusing third-party data, it may face a huge fine!

Recommend

What should I do if the product cannot be found by keyword search?

The product suddenly could not be searched using t...

As a fan of Teacher Alice, what nickname would you like to give yourself?

In the new year, we plan to give our fans who foll...

Shopify and aCommerce reach cooperation! Strengthen involvement in Southeast Asian market!

<span data-shimo-docs="[[20,"获悉,据外媒报道,近日Sh...

Shipping restrictions have been broken!! Just now, Amazon officially launched...

“It is better to lose money than to run out of sto...

What is DTC Marketing? DTC Marketing Review

DTC (Direct To Customer) marketing refers to a mar...

About 17,630 units sold! Domestic car cleaners are urgently recalled!

<span data-shimo-docs="[[20,"获悉,据外媒报道,2月9日...

Amazon releases new features! Will it integrate more third-party services?

Amazon recently announced that it has launched a ...

5 Ways to Lower Amazon ACoS (Advertising Cost of Sales)

Promoting on Amazon is similar to traditional adv...

What is iCraft Gifts? iCraft Gifts Review

iCraft Gifts is headquartered in Toronto, Canada. ...