Reinstate AMZ - Invoice Defect Rate

Invoice Defect Rate

Amazon requires sellers to provide valid VAT invoices within a day for every order as soon as dispatch is confirmed. Credit notes on returns should be sent within one working day as well. By working as a seller on Amazon, you must adhere to these policies to be able to continue selling on this platform.

Invoice Defect Rate is a ratio of orders for which you didn’t transfer an invoice at night of the first working day accompany the day you verified transfer of that order. Amazon has the policy to require invoices of taxes and accounting on time.

How is Invoice Defect Rate Calculated

It is the ratio of orders for which you didn’t upload a bill by midnight on the first working day accompanied by the day you verified the transfer of that order.

For example, if you confirmed the order on Sunday, then you need to submit the invoice by 23:59 on Monday. The confirmed orders are dispatched on a Thursday you will have the time of 23:59 on Sunday of the following week to publish invoices because Amazon only takes working days into account.

The way of checking your current invoice defect rate is by going to Seller central of Account Health and Customer Service Performance. You can only calculate the orders for the last 7 days.

Ways to Reduce Invoice Defect Rate

There are many options to reduce your invoice defect but here I only discuss some important methods or tricks to reduce invoice rate.

  1. You should enroll yourself in the VAT calculation service and allow Amazon to create the invoices for you. If Amazon creates invoices on your behalf then Invoice Defect Rate is 0%.
  2. You should also reduce IDR by choosing the setting of Amazon’s VAT calculation services to submit your invoices with the Service provider.
  3. The other way to reduce IDR with the help of a Service Provider is done when you enroll in Amazon VAT Calculation Services.
  4. With the help of the Manager Order or Detail page, you can upload your invoices to reduce IDR.

If you choose option 1 then you get the advantage of generating invoices automatically. But if you aren’t VAT registered you are not able to provide VAT invoices. To upload your invoices you should first register as VAT then proceed with the further process. It’s also important to mention on the receipt that you’re a VAT registrar or not.

Demo of Generating the Invoice Template

It is very simple to generate the invoices with the help of You should only understand the method to run the invoice generator.

Firstly you add your business detail and logo then add customer detail and change the invoice to receipt. Add the number of invoices, simply add the order number and convert the currency into the GBP. Also, put the sale price and add you are VAT registered or not.

Final Thoughts

In short, there are different steps you can take to reduce your Invoice Defect Ratio, therefore there is no need to worry about this matter. You can simply choose any of the above options which are discussed in this article.


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