DDP vs DAP: Who Pays the Import Bill
Updated 2026-11
Two Incoterms dominate e-commerce shipping: DAP (Delivered at Place) and DDP (Delivered Duty Paid). The difference is who is the importer of record and who pays duty and VAT.
DAP
The seller delivers to the destination but the buyer clears customs and pays duty and VAT. For B2C this is the 'surprise bill at the door' model: conversion drops, refusals rise, and the seller often eats the return cost.
DDP
The seller acts as importer of record, pays duty and VAT, and the buyer receives a clean delivery. Prices look higher because tax is included, but the customer experience is frictionless and returns are lower.
What DDP requires
- A customs broker or a carrier offering a DDP service.
- Either an EU VAT registration or a fiscal representative.
- Accurate HS codes — a wrong code under DDP comes out of your margin.
Which to choose
DDP for consumer goods where the order value is low and refusals are expensive. DAP is workable for B2B or high-value goods where the buyer has a customs department and expects to handle clearance themselves.
Watch out: some carriers label a service 'DDP' while only covering duty, not VAT. Read the tariff line, not the marketing name.