found a bug/error with FBA lost inbound reimbursements
found a bug/error with FBA lost inbound reimbursements
ok when amazon reimburse for a lost inbound item as part of the UPS partner program
they would reimburse the seller so that the seller would receive the proceeds they would have had the item not been lost.
but now that VAT is charged by Amazon on commission and fba charges this amount is being deducted from the reimbursements but it is not recoverable elsewhere as no vat was charged as the sale/fba despatch did not occur.
does that make sense?
best for me to explain it this way.
product sells for £50.00 inc vat - nett is £41.67
vat on that is £8.33
amazon fees of £7.50 + 1.50 vat
fba fee £2.89 + 0.58 vat
if the item had sold the seller would have received from amazon £37.53 but then has to pay £8.33 vat
but can claim back £1.50 + £0.58 of vat on the vat return.
in this example the inbound item was lost by amazon.
amazon have repaid us £29.20
but we cannot recover the £1.50 + £0.58 as the fees (and accompanying vat) were never charged but the value of those fees was deducted as gross amounts from the reimbursement instead of being deducted as nett of vat from the reimbursement due.
I think this has affected all UK sellers with FBA lost inbound reimbursements since 01/08/2024
11 replies
Seller_fnDToj98CH59W
I have the same problem. In the last month, 3 shipments I sent at different times (FBA15JNL51XX, FBA15JNBMNF8, FBA15JM68GXT) had missing products and I was compensated. However, the payment was much lower than the payment I would have made from the sales of these products, and even less than the invoice amount I purchased.
I had also received lost product compensation in previous years and there was no problem.
The response to the lawsuit I filed is as follows;
''After reviewing the reimbursement amount for ASINs ... we’ve determined that we will be unable to make any additional adjustments.
The reimbursement amount is determined in accordance with the FBA Lost and Damaged Inventory Reimbursement Policy and related FBA service terms of the Amazon Services Business Solutions Agreement.
For more information, go to “FBA Lost and Damaged Inventory Reimbursement Policy” (sign-in required): https://sellercentral-europe.amazon.com/help/hub/reference/G200213130''
Can Amazon forum officials look into this issue? @Julia_Amzn @JiAlex_Amazon @Simon_Amazon @Winston_Amazon
Because the refunds made do not comply with the mentioned policies.
Seller_76AUwmqvSyRIM
It's common that reimbursements for lost packages do not include VAT.
All couriers do this.
Just make sure you don't account for 20% VAT on those. Record them as "No Vat"
Seller_51Trj4jpVFZCy
Normally when you calculate VAT end of the term. You deduct VAT Amount on lost/stolen/damaged items but obviously, You don`t calculate on your sale price. You deduct VAT from your purchase price.
Seems like Amazon deducts VAT as you sold to item. You might want to see the invoice from amazon . If it is 0% VAT rate. If so just enter that amount as £29.20 and deduct VAT Amount of your purchase. That would be same basically.
