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Polish law protects customers extensively, allowing returns and complaints about purchased goods. This particularly matters in e-commerce, where proper after-sales service preserves profitability and smooth operations. How should returns and complaints be accounted for?
What are e-commerce returns and how should they be accounted for?
Article 27(1) of the Consumer Rights Act of 30 May 2014 states:
“A consumer who concludes a distance or off-premises contract may withdraw within 14 days without giving a reason and without incurring costs […]”.
Thus, online shoppers may return goods within 14 days of receiving them, not of placing an order. Some stores extend this period to improve their image and transparency.
E-commerce sellers must prepare for and correctly account for returns. How?
- First, make returns possible by publishing detailed rules; many firms include them in the delivered parcel.
- Second, accept and verify the return: receive the goods, check them against the contract and issue a document acknowledging receipt.
- Third, record the return correctly. Enter it into the accounting system, including reduced revenue and any increased costs of processing it. Also issue an accounting document confirming the return, such as a correction invoice or note, and make any VAT correction; if a VAT return for the period has already been filed, a correcting return may also be required.
- Fourth, refund the money to the customer and keep confirmation, such as a bank transfer receipt.
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What is a complaint, what is its legal basis, and how do you account for it?
Purchased goods must conform to the contract. If they do not, Article 43d(1) of the Consumer Rights Act of 30 May 2014 provides that the customer may demand repair or replacement. This right applies during the first two years after delivery of the goods or service.
Handling a complaint involves:
- Accepting the complaint with a completed complaint report, including a description of non-conformity, the requested remedy and proof of purchase;
- Checking that the customer meets complaint requirements, including necessary details and documents, and that the goods really fail to conform to the contract;
- Deciding whether to reject or accept; when rejecting, provide details such as seller and buyer, submission and decision dates, reasons and an explanation of consumer rights;
- When accepting, replacing the goods, repairing them or refunding the money.
Under Article 7a(1) of the Consumer Rights Act, the business must answer the consumer's complaint within 14 days of receiving it. No answer means automatic acceptance.
Like returns, complaints also require proper accounting.
Record them in accounting books and tax settlements, paying particular attention to:
- Any sales revenue adjustment;
- VAT and a possible reduction of VAT due;
- Costs of handling the complaint;
- Current inventory.
If this article interested you, explore our e-commerce accounting services and see how we can help:
Summary
Correctly handling and accounting for returns and complaints is necessary both for legal compliance and for remaining profitable and competitive.
These matters can be complex and automation may be essential. They also raise tax and accounting questions. If you need help, explore the TaxCoach accounting firm's services!
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