Amazon support have told me they will not be issuing VAT invoices for RM return labels.

Yes, I know.

At the moment I’m just sending the tax docs etc to my accountant and they do their “stuff”. I really won’t be around too much longer so not really worried.

This may be completely wrong, but after inspecting my September transaction report my understanding is as follows.

The cost of the return label is being taken directly from our sales/funds. Check your most recent transaction report and you will see the labels showing as Delivery Services.
No VAT is being shown at all, just a 3.35 deduction.
For buyer pays returns where you deduct the shipping cost (3.35+VAT = 4.02) it appears the VAT is being handled as part of the return/refund. The customer is being charged the VAT and Amazon are classing the total as a sale rather than mail/shipping cost so no separate VAT invoice required.

For labels that are not buyer pays and therefore the cost is not withheld from the customer the 3.35 is not showing any VAT either. Therefore no VAT is being charged and there is none to “reclaim” - I assume Amazon are classing it as a fee. Therefore it will be handled via reverse charge on your return.

TLDR - buyer pays labels are classed as a sale, not a shipping cost.
Seller pays labels are being classed as a fee, not a shipping cost.
No separate VAT invoice required.

If the return falls into the buyer responsibility below the seller can deduct the costs of the prepaid return from the refund:-

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Interestingly, I’ve just had an email from ebay containing a VAT invoice for a return label. I notice that the business name on the VAT invoice is Royal Mail, not ebay (though ebay have intelligently built the systems in place to actually forward on the invoice).

I wonder if it is in fact Royal Mail who should be supplying the invoice if that is the case? Issue there is I’ve already hit a brick wall at Royal Mail as well as the one at Amazon.