DDP and DAP in the UK 2026 – who is responsible for VAT, customs and clearance?
With DDP, the import is generally handled by the seller, while with DAP, it's handled by the buyer. However, the invoice abbreviation itself doesn't determine VAT registration, the right to deduct tax, or the rules for shipments up to £135.
Before shipping, match the delivery terms with the actual importer, EORI number, and carrier instructions. If the seller is taking over UK responsibilities, also check the overseas VAT registration.
First, set the importer, then enter DDP or DAP
The delivery rule is intended to describe the actual flow of goods and documents. If the parties, the carrier, and the customs declaration demonstrate a different model than the contract, three letters won't fix the settlement.
More on the seller's side
Import clearance, duties and preparation of the tax and customs model.
Import on the buyer's side
The seller delivers the goods and the buyer essentially clears the import and pays the duties.
Separate analysis
The delivery condition does not automatically establish a place of taxation or a registration obligation.
One version of data
The contract, order, invoice and instructions to the carrier must be consistent.
DDP and DAP in the UK
In both rules, the seller is responsible for delivery to the designated location and bears the risk until the goods are ready for unloading. The difference primarily concerns import.
| Area | DDP | DAP |
|---|---|---|
| Transport to the agreed location | The seller organizes and bears the risk. | The seller organizes and bears the risk. |
| Import clearance | Basically on the seller's side. | Basically on the buyer's side. |
| Customs duties and import fees | Generally, the seller bears the cost. | Generally, the buyer bears the cost. |
| Import VAT | Seller arranges payment or settlement; deduction is assessed separately. | The buyer settles as an importer if he meets the appropriate conditions. |
| Unloading | Buyer – the goods are made available ready for unloading. | Buyer – the goods are made available ready for unloading. |
| Customer experience | Typically, there are no standard delivery surcharges if the model is implemented correctly. | Additional charges may apply before delivery; these require clear information prior to purchase. |
| The most important preparation | Importer, EORI, VAT, customs agent and document flow. | Buyer's ability to import and reliable communication of costs. |
The scope of both rules confirms the official discussion of Incoterms, including DDP and DAP.
What do DDP and DAP not resolve?
Incoterms divide transportation tasks, costs, and risks. They do not replace VAT or customs regulations.
Place of taxation
It depends on the delivery process, the location of the goods and the customer's status.
VAT registration
DDP can trigger it, but the rule name itself does not create an obligation.
Import VAT deduction
What matters is the importer, documents, taxpayer status and use of the goods.
VAT rate
Depends on product classification and transaction type.
Customs value
The delivery term helps determine costs but does not select the pricing method.
£135 Rule
It can transfer VAT collection to the moment of sale regardless of DDP or DAP.
DDP to the UK – what does the seller need to prepare?
DDP can improve the customer experience, but it requires real import capability. Don't just use this rule as a "no surcharge" policy.
Please check before shipping
- who will act as the importer in the declaration;
- whether the company has the correct EORI number;
- whether the transaction requires VAT registration;
- what type of representation the customs agent will use;
- who will pay customs duties and other fees and how;
- how import VAT will be settled.
After check-in, pick up
- copy of declaration and customs notices;
- confirmation of importer details;
- settlement of customs duties and carrier fees;
- monthly PVA statement or C79 certificate – depending on the model;
- documents consistent with the invoice and VAT declaration;
- proof that the shipment has arrived at the agreed destination.
DAP to the UK – Buyer's Obligations and Seller's Risk
With DAP, the buyer essentially clears the import and pays VAT, customs duties, and carrier fees. The seller remains responsible for transportation to the agreed destination and the quality of the data submitted for clearance.
Commercial data
The invoice must contain an accurate description, value, origin and the correct parties to the transaction.
Buyer's ability
Confirm that the buyer can act as an importer and is familiar with the carrier's requirements.
Price information
Please note before ordering that taxes, duties and handling fees may apply.
Who is really the importer in DDP and DAP?
With DDP, this is usually the seller, and with DAP, it's the buyer. The word "usually" is key: the final picture must result from the contract, the customs declaration, and the actual roles of the parties.
Operations page
It should have the correct EORI, import capacity and access to documentation.
Represents the page
It operates within a defined scope. It does not automatically assume the role of importer.
Carries out transport and customs clearance
His data in the system should not replace the identification of the correct importer.
Before ordering clearance, check the rules for using a customs representative and select an EORI number in the UK.
DDP, import VAT and PVA
If the seller is an importer under DDP and is registered for VAT in the UK, they can check the possibility of settling import tax on their return. However, this is a separate analysis.
What has to be right?
- importer's details in the notification;
- instructions for customs representative;
- VAT registration status;
- the connection of the goods with taxable activities;
- access to monthly import reports.
What not to wear?
Merely incurring a VAT expense does not constitute a deduction. A document issued to another entity may prevent proper settlement.
The full rules are covered in the Import VAT in the UK.
Also check the official conditions for the use of PVA.
DDP and DAP do not replace the £135 rule
The current rules are also described by HMRC in its explanation of direct sales of goods.
DDP and DAP in B2B and B2C sales
Buyer can have their own import model
DAP is practical when the buyer has an EORI number, an agent, and clearance procedures in place. DDP requires the seller to be able to handle imports and document flow.
What matters is the final price and predictable delivery
DDP can reduce unexpected surcharges. With DAP, import costs must be explained to the customer before the order is placed.
How to choose and implement the right delivery condition?
Five steps allow you to check DDP or DAP before your shipment reaches the carrier.
Describe the route and sales
Determine the location of the goods, the value of the shipment, the type of customer and the platform's share.
Select an importer
Confirm which party can act as importer and has the correct EORI.
Check VAT
Evaluate registration, VAT collection on sales and import settlement.
Arrange severance pay
Provide the carrier with the importer's details, EORI, VAT and settlement method.
Standardize documents
Enter the same rule and agreed place in the contract, order, invoice and instructions.
What should be consistent before the first shipment?
The safest model is one in which the delivery condition and agreed place are understood identically by the sales department, accounting, warehouse and carrier.
- sales contract or regulations;
- order confirmation;
- commercial invoice;
- importer and exporter details;
- EORI and VAT numbers;
- full name of the agreed place;
- instructions for carrier or agent;
- customs duty payment rules and import VAT;
- customer fee notice;
- document circulation after clearance.
What spoils DDP or DAP settlement?
Most problems stem from a gap between the sales promise and the actual severance payment.
DDP without importer
The seller promises severance pay, but cannot properly fulfill this role.
DDP as "registration"
The delivery rule is incorrectly treated as automatic VAT status.
VAT to the wrong entity
The cost is borne by the company that does not have the proper documents to deduct.
Hidden costs of DAP
The customer only sees the tax, duty and carrier fee upon delivery.
£135 omitted
The company assumes that VAT will always be collected by the office upon import.
Conflicting data
The invoice, label, and report show different pages or terms.
No documents
No one has determined who receives and archives the clearance certificates.
Imprecise location
The rule does not specify the point up to which the seller bears the risk.
DDP or DAP – which model to choose?
Choose DDP when the seller can legally and operationally handle the import and is willing to provide the customer with delivery without standard surcharges. Choose DAP when the buyer consciously assumes customs clearance and duties.
Real role
The delivery term must correspond to the actual importer.
Consistent data
EORI, VAT, invoice and clearance instruction must indicate the same model.
Clear price
The customer should know the costs before purchasing, especially with DAP.
For a more comprehensive map of responsibilities, see the UK VAT guide . If your model requires a local number, see the UK VAT registration article .
DDP and DAP in the UK – Questions and Answers
In the standard model, import costs and formalities are borne by the seller. However, the method of payment or settlement of VAT must be agreed upon with the customs agent, and the right to deduct must be assessed separately.
Generally, the buyer is responsible for import clearance. The contract and sales communications should clearly explain this responsibility.
Not automatically, but DDP often requires such analysis. The obligation depends on the delivery process, the location of the goods, the customer's status, and the import settlement method.
A courier may act as a customs representative, but representing the company should not be confused with the courier assuming the role of importer. This role must be confirmed prior to shipment.
This may be used, but the customer should be aware before purchasing that they will be responsible for paying import duties and any carrier fees. Failure to provide this information increases the risk of refusal of acceptance.
No. For certain shipments up to £135, VAT may be charged at the point of sale. This rule must be considered regardless of the delivery term chosen.
In both rules, the seller makes the goods available on the arriving means of transport, ready for unloading. Unloading is generally the responsibility of the buyer.
This text is for informational purposes only and does not replace individual tax or customs analysis. For DDP and DAP in the UK, it is necessary to verify the actual importer, the delivery terms and place, EORI and VAT numbers, the method of representation, the import tax settlement rules, and document consistency.
