From the factory door to the first warehouse · Who clears the border
DDP versus DAP
DDP puts duty and import VAT on the seller; DAP leaves clearance and import taxes to the buyer. The difference decides the importer of record and the cash at the border.
Key facts
| DDP | Seller delivers goods cleared for import, with duty and import VAT paid |
|---|---|
| DAP | Seller delivers at the named place; buyer clears and pays duty and import VAT |
| Importer of record | Under DDP usually the seller or its representative; under DAP usually the buyer |
| VAT recovery | Only a VAT-registered importer can normally recover import VAT |
| Risk | DDP shifts border delays and unexpected charges to the seller |
| Official source | Incoterms 2020 rules published by the International Chamber of Commerce |
The invoice says one thing; the border says another
DDP means the seller handles export and import clearance and pays duty and import VAT. DAP means the seller delivers to the named place but the buyer is the importer. The three-letter term is not a pricing style — it decides who signs the customs declaration and who receives the tax bill.
For a seller without a VAT registration in the destination, DDP can mean paying import VAT that cannot be recovered. For a marketplace seller, the platform may also require the importer of record to match the entity on the listing. Confirm the chain before quoting a delivered price.
Model both sides of the border
Compare the seller's cash outlay under DDP with the seller's cost plus the buyer's import bill under DAP. If the buyer is VAT-registered, the DAP import VAT may be recoverable for them, which can make DAP economically cheaper for the chain even though the buyer pays at the border.
Use the first-mile calculator to see the DDP total, the DAP seller cost and the importer's duty-plus-VAT bill for the same shipment.
Frequently asked questions
Does DDP include VAT?
DDP includes import duty and import VAT in the seller's delivered obligation. Whether the seller can recover that VAT depends on its registration in the destination.
Can a non-EU seller sell DDP into the EU?
Yes, but the seller needs a way to clear the goods — an EU-established importer, a fiscal representative or a forwarder acting as indirect representative. The chosen route determines who carries the import VAT and compliance risk.
Is DAP the same as DDU?
DDU is an older term that was removed in Incoterms 2010. DAP is the current term for delivering without import clearance.
Ask a compliance question
Free first answer by email. Tell us the destination, the product and the channel — we will point you to the rule and the official source. No obligation, no sales sequence.