New requirement to maintain Invoice Defect Rate below 5%


Amazon Business customers require timely invoices (or receipts) for tax and accounting purposes. To help you deliver the invoicing experience that this fast-growing segment of customers expects, we introduced the Invoice Defect Rate in July 2020 and since then have been recommending to maintain it under 5%.

Starting from 5 April 2021, all sellers will be required to adhere to this 5% target to sell on,,, and Failure to comply with this upcoming performance requirement may result in account deactivation.

If your Invoice Defect Rate is above the 5% target, Amazon can help you improve your performance and receive fewer customer contacts with the following solutions to provide invoices to customers:

Amazon generated invoices (recommended)

Amazon can generate VAT invoices or receipts on your behalf at no cost and make them available for customers to download. VAT registered sellers can activate the VAT Calculation Service and benefit from automated invoice generation. Sellers exempt from VAT registration in both the EU and the UK can declare their VAT exemption status and benefit from automated receipt generation.

Invoice upload

You can upload your own invoices within one business day after shipment either manually via the Manage Orders page, or automatically through a third-party solution or by developing your own solution. Customers will be able to download the invoices directly from their account.

Please note that invoices sent through the Buyer-Seller messaging are not compliant with theAmazon Business invoicing policy, hence are considered missing and affect your Invoice Defect Rate negatively.

Visit our dedicated pages to learn more about the Invoice Defect Rate, how to upload your invoices and the VAT Calculation Service.

Thank you for your continuous commitment to improving the customer experience on Amazon.


I am puzzled by the email I received from Amazon regarding this topic. It said my IDR was over 5% and yet, when I followed their navigation route, it said “N/A”. Apart from that, I only sell FBA and I have already activated the VAT calculation service. I’m not sure what more I can do.


If I am not registered as VAT and I sell only on Amazon UK, am I also subject to this 5% limit - since I receive such a message?


Yes, you are required to upload a “receipt” for all business buyers and any buyer who requests one.


I’m not vat registered and only sell on Amazon U.K., do you have to upload a invoice for every order? Or just business customers?


As above, just business customers or anyone who requests one


Where can I find my ‘Defect Rate’ in my account?


Performance, Account Health, Customer Service Performance


Managed to. I found the answer to my two questions.
“Defect Rate” is on my account here:
Performance, Account Health, Customer Service Performance, Order Defect Rate /or/ Invoice Defect Rate >Target : under 5%

And there is info about VAT invoice:
“… Sellers exempt from VAT registration in both EU and the UK can let Amazon issue receipts on their behalf at no cost by [declaring their VAT exemption] …”


Thanks, I’ve checked and my defect rate shows as N/A I’m assuming this is because I’ve never has a business customer?


If you look on the right side i think it says they only show you the last 7 days.


Here is the exact information. They show that you are not even a VAT seller, you need to send the relevant document to business buyers.
How do I change this 7 days to a larger period?


5. How can I reduce my Invoice Defect Rate?

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.

I am exempt from VAT registration in UK, but this ‘declare’ is for EU.
Can I still send this declaration?


I tried to sign up for amazon’s automated invoices but could not do so. The declaration states that you don’t sell VAT rated goods, but I do. There was no way just to declare that you only sell inside the UK.

This, along with the compliance paperwork they now want (which I don’t have for any of my items - all used) and the sky high scam rate on amazon compared to ebay made my decision to give up selling on amazon. Small private sellers don’t fit into amazon anymore.


Also they you can click the enroll as Non VAT registered link. It now works properly.


Where is this link? Can you send this link here?


Dear Amazon

I’ve been selling here since before Marketplace. I know what you’re like.

Uploading my invoices is a pain in the bum but I wouldn’t trust you to address my parcels, let alone let you near my accounts.

Kind Regards

The Original Parrot


I wondered how long it would take before you wheeled out this stick to beat us with.

Can just I ask, regarding declaring VAT exemption status and having automated receipts, is there anything we need to be aware of other than what’s on the form we have to sign?

Reason I ask is that Amazon don’t usually do anything like this out of the goodness of their heart, so I just want to make sure there aren’t any nasty surprises down the road.


I got the email this morning and declared my vat exemption.Everything seems to be ok and my account now states that Amazon will provide the invoices/receipts.


Please provide the link where you declared your VAT exemption.