Amazon adds new performance! If the performance exceeds 5%, the store may be closed!

European sellers recently received an official email reminder from Amazon, informing them that the invoice defect rate will officially take effect on April 5, and stores with a defect rate exceeding 5% will be at risk of having their sales suspended!

The invoice defect rate is a new store performance indicator introduced by Amazon in July last year. It requires sellers to provide each Business buyer with a valid VAT invoice for the purchased products . After the Business order is shipped, the seller must upload the invoice within one working day. Failure to do so will be included in the performance.

When Amazon announced the invoice defect rate, it only stated that McKee needed to keep the defect rate below 5%. It also said that although this value had been put online and statistics had begun, even if it exceeded the standard, it would not have any impact on the store for the time being. It was obviously to give sellers a buffer period.

The mass emails sent out in the past two days mean that the transition period for the invoice defect rate has ended and the penalty will be officially implemented from April 5th.

Not only that, it is not only Business orders that require invoices. Last year, a large number of 2c orders also showed that invoices were missing and required sellers to upload them manually. At that time, a large number of European sellers were very busy. Many sellers who did not usually have Business orders did not know how to deal with it at all.

Later, an official email notification confirmed that some regular orders (B2C orders) do require sellers to upload invoices.

This is troublesome. Amazon has not said what kind of orders require sellers to send invoices. Now that the defect rate has been officially included in the performance, there is no guarantee that some normal orders will suddenly require invoices, and then there will be some that slip through the net that you haven't seen yet. If the store exceeds the 5% indicator, it will be in danger.

It is also easy to solve this problem. Some tax systems that automatically upload invoices can solve it. Most officially certified tax service providers can solve it. Amazon itself has a free VCS automatic tax calculation service that can achieve this function.

Amazon's VCS (VAT Calculation Service) is currently free and will automatically calculate the VAT based on the parameters set by the seller, and automatically generate VAT invoices for customers to download on the platform. In order to promote this function, Amazon even wrote directly on the IDR policy page that "For sellers using the VCS service, the store IDR is 0%."

From the perspective of free and convenient, VCS is indeed the best choice. However, activating VCS also means that there is not much room for maneuver in the tax calculation process. In addition, the VCS service has had some bugs before, which included tax on self-delivered orders that are not subject to tax. Although this problem was quickly fixed, Amazon still does not have a definite compensation plan.

Therefore, if sellers want to use VCS to solve invoice problems, they must carefully consider these situations and risks. When there are not many orders, manual uploading is completely possible, and you can choose according to your own situation. In short, IDR will be another important performance of the European site, which requires European sellers to maintain it well.

In order to help you deal with the invoice defect rate policy on April 5, I have compiled a complete and detailed analysis of the invoice defect rate, from the registration steps to some advantages and disadvantages analysis.