Refunds and Reimbursement VAT Consideration
Forgive me that I am not able to use spainish. We have some orders that are related to refunds and FBA inventory reimbursement.
We notice that in these orders, Amazon will deduct the money from our platform account and refund it to customers. On the other hand, Amazon will transfer an equal amount of money to our platform account and indicate "FBA Inventory Reimbursement". The thing is Amazon doesn't calculate any VAT on the two amounts. But as far as we know, our products are all subjected to 16% standard VAT rate. Though the same amount of money comes out and comes in and will result in a nil influence on the VAT, we are confused how to invoice such orders to be compliant.
In accounting, we record the deduction from Cowit's account to customers as a negative revenue and record the transfer from Amazon to Cowit as a negative expense. But as far as I know, Amazon will not issue expense invoice for such a "FBA Inventory Reimbursement". Now the question comes. Shall we invoice the deduction as a 0% negative sales invoice? (i.e. 0% NC)
Refunds and Reimbursement VAT Consideration
Forgive me that I am not able to use spainish. We have some orders that are related to refunds and FBA inventory reimbursement.
We notice that in these orders, Amazon will deduct the money from our platform account and refund it to customers. On the other hand, Amazon will transfer an equal amount of money to our platform account and indicate "FBA Inventory Reimbursement". The thing is Amazon doesn't calculate any VAT on the two amounts. But as far as we know, our products are all subjected to 16% standard VAT rate. Though the same amount of money comes out and comes in and will result in a nil influence on the VAT, we are confused how to invoice such orders to be compliant.
In accounting, we record the deduction from Cowit's account to customers as a negative revenue and record the transfer from Amazon to Cowit as a negative expense. But as far as I know, Amazon will not issue expense invoice for such a "FBA Inventory Reimbursement". Now the question comes. Shall we invoice the deduction as a 0% negative sales invoice? (i.e. 0% NC)
0 replies
Lucre_Amzn
Hello @Seller_BWrlaL3xZfvM8
Thank you very much for reaching out in Amazon forums, this is Lucre, and I'll be glad to assist.
I understand you would like to know how to manage your invoices after an FBA order has been refunded.
Please know that Amazon doesn't provide tax support or advice. Rather, we recommend you to contact your tax advisor if you're unsure about how to proceed in this scenario.
Please review the below help pages for information:
Quick Reference: invoices with VAT for customers
Thank you for your understanding and selling on Amazon.
Regards,
Lucre_Amazon
