Amazon pricing glitch to seller's detriment on random IOSS orders
Normally, on most ‘Marketplace withheld tax’ (IOSS) orders under €150, Amazon will, correctly, take the net price, add local VAT, charge this local VAT to the customer, and withhold the VAT element of the sale from us; this is all legitimate.
Recently, however, there appear to be a small number of random orders- all FBA IOSS orders under €150- where Amazon seemingly treats the net price as the gross price, resulting in under priced sales.
To give a numerical example:
Gross price: £129.99 (with UK 20% VAT)
Net price: £108.32
Price for Irish ‘Marketplace withheld tax’ (IOSS) order ought to be:
£108.32 + 23% Irish VAT of £24.91 (correctly withheld at source by Amazon)= £133.23
This is usually what is actually charged, but very occasionally, perhaps due to a glitch, we get:
Gross price: £108.32 (treating the net price as the gross price)
Net price (x 100/123)= £88.07
VAT of 23% (£20.25) correctly withheld at source, but the price itself is too low
So the customer gets a bargain, and we lose out. Amazon support appears not to understand the problem, but has anyone else experienced this issue?
0 replies
Seller_ZQyopdiwkUHOZ
This has been talked about on here before specifically with orders to Ireland, though in a slightly different circumstance, with unfortunately no solution or resolution.
If I had to take a guess, I would wonder if the fact Amazon consider .co.uk yo be the Republic’s local marketplace is causing some of the issue.
Seller_wp4uOFhKnGwdQ
Thanks for this. We tried looking for other forums threads on the matter but didn’t find them (perhaps we were using the wrong search terms). We found another user who posted in an unrelated thread about the issue though.
If you have a couple of minutes, would you mind posting a couple of links to the posts you’ve seen please?
Seller_qYWBbVqeAGVy5
We have experienced this issue and we have been refunded the money for 3 orders so far, but it did take a very long time for Amazon SS to acknowledge a mistake with many ridiculous replies along the way.
What you should do Is open a case for every order number, make your message very clear and concise and make sure you compare the price to correctly priced order of the same product so they can’t blame your product listing for having incorrect settings and so that they can see it’s an anomaly when someone eventually reads the message properly
Then get ready for several pointless automated, copied and pasted replies from SS about how IOSS works, just create your own default copied and pasted reply to use in all cases telling them that they are not answering your query and then eventually the case will go in limbo for 2 months while you keep getting those "being investigated replies’, then eventually after 3/4 months you will get a credit
Well that’s how it worked for us anyway, just be ready to have some automated replies yourself and don’t get involved in writing responses to their stupid initial responses, save yourself the time with one default simple reply to all cases telling them they don’t understand your query
Maybe they are aware of this now, so could be worth creating a case with all affected order numbers alongside the others which could save yourself time
