even better is that since October they deduct the VAT from the original amount so you get less than the original a,mount refunded,
so not only do you loose out on the refund amount they initially give you also loose the VAT,
I’ve slowed the amount of items i’m sending to FBA right down as Amazon like to help themselves to my money too much
below is part of a response when I queried the difference in refund from the original amount)
"The reimbursements are not issued to compensate any refunds or orders. They are issued only to compensate for the unit. Since, it is a compensation, it is not eligible for VAT and hence while the ‘value’ of the unit is decided, it will be excluding the VAT and Amazon fees.
The above policy is in effect since August 2018.
When your inventory is either lost or damaged while under Amazon’s control, we will do one of two things: replace the item with one that has the same FNSKU OR reimburse you.
Example: In case a Customer returned item gets damaged while under Amazon’s control:
October 1st – You sell an item through FBA: Your selling price includes local VAT. We remit to you the customer charges minus our Selling on Amazon and Fulfilment by Amazon fees.
([x] net price + [y] % VAT) – [z] (fees) = [a]
October 11th – Customer returns the item in Sellable condition and you refund the amount ([x] net price + [y] % VAT) to the Customer. The item is added in Sellable condition to your inventory. At this moment, you are in principle entitled to claim back the VAT initially charged to the customer from the local government. The Order Transaction Details page includes further information regarding the calculation. Also note, that conditions such as issuing a credit note to your customer might apply. Contact your tax adviser for more details on the conditions to be met in your specific situation.
October 22nd - Amazon damages the returned item: You get reimbursed according to our FBA lost and damaged inventory reimbursement policy. We either replace the item with the one that has the same FNSKU OR reimburse you with the estimated proceeds of the sale of that same item. We consider several factors when determining the reimbursement amount, including your sales history, the average FBA selling price on Amazon and the sales history of the specific ASIN. The estimated reimbursement amount excludes local standard applicable VAT rate.
Note: If you are enrolled in our Amazon VAT Calculation Service, we will take your Product Tax Code (PTC) into considerations when calculating the applicable tax rate.
Please note that when you update an offer price in the inventory, you include the VAT in it which is excluded when we decide the unit value.
NOTE: The reason to exclude VAT from the price is taken because the reimbursements are not new sales and compensations are not included for VAT calculation. You can consult your tax advisor on the same.
*When will we consider the sales history or similar ASIN prices
If we do not have any previous history for the ASIN, we may look into the other details and reimburse after excluding the VAT and Amazon fees. In case if we do not have any previous record, we may ask for invoice to match the unit purchase price.
I regret to state that we are unable to process any further reimbursement for the orders.
We request your kind understanding in this regard.!