Invoice Defect Rate (IDR) measures the invoicing experience you provide to Amazon Business customers who require invoices or receipts for tax and accounting purposes, as explained in Amazon Business Invoicing Policy.
IDR is a percentage of orders for which you did not upload an invoice by midnight on the first business day following the day you confirmed shipment of that order. IDR calculation assumes Monday to Friday as business days. For example, if you confirm shipment of an order between 00:01 am and 23:59 pm on Monday, you must upload an invoice for that order by 23:59 pm on Tuesday. If you confirm shipment of an order between 00:01 am and 23:59 pm on Friday, you must upload an invoice for that order by 23:59 pm on Monday.
We recommend you maintain IDR below 5%.
You can view your Invoice Defect Rate on Account Health page. In addition, you can also download a report to see which orders contributed to your Invoice Defect Rate. To download the report:
We do not currently take action on your account if your Invoice Defect Rate is above the target of 5%. However, we plan to start in the near future and will notify you 90 days in advance of doing so. We therefore recommend that you maintain an IDR below the recommended target.
You can reduce your Invoice Defect Rate through one of the following ways:
Option 1: Enroll in Amazon’s VAT Calculation Service and let Amazon create invoices on your behalf automatically. IDR is 0% when Amazon’s VAT Calculation Service generates an invoice on your behalf.Check column 1 of this page to learn more about it.
Option 2: Enroll in Amazon’s VAT Calculation Service and choose the settings to upload your own invoices via your solution provider.
Option 3: Upload your invoices via your solution provider without enrolling in Amazon’s VAT Calculation Service. Check column 3 of this page to learn which solution providers support this feature and how you can activate it.
Option 4: Upload your own invoices manually from Manage Orders or Order Details page.
Yes, as per Amazon Business Invoicing Policy, if you are not required to apply VAT on your sales, you are required to provide a receipt for each order from an Amazon Business customer. You can do this either manually on Manage Orders page or via your solution provider.
No. As per Amazon Business Invoicing Policy, you should use one of the four options described above in FAQ 5 to provide invoices to Customers. Invoices sent over email will be considered missing, and will affect your Invoice Defect Rate negatively.
This is likely because the VAT Calculation Service cannot generate invoices for all your orders. The VAT Calculation Service generates invoices only for orders dispatched from a European country for which you have added a VIES-valid VAT number in Seller Central. For example, if a shipment is dispatched from France but you have not added a valid VAT number for France, the VAT Calculation Service will not issue an invoice for this shipment.
Similarly, if a shipment is dispatched from a country outside Europe such as China, the VAT Calculation Service will not issue an invoice for this shipment either. For such shipments, you must upload the invoices on Seller Central via Manage Orders or using a third-party solution provider.
Yes. Since 20th March 2020, the Amazon Business Invoicing Policy requires that for all orders placed by Amazon Business customers, you must proactively upload invoices on Seller Central. However, Invoice Defect Rate is only calculated for orders that were placed during the seven-day period starting two weeks ago.