Delivery Duty Paid (DDP) is a type of delivery whereby the sender or seller takes the responsibility of paying the duties. The seller pays for all costs of shipping goods to the destination country of a buyer. These costs include any stipulated import duties and taxes, including Goods and Services Tax (GST).
In DDP, the senders typically pay any VAT unless otherwise specified. If you wish to implement DDP shipping, you must confirm any VAT requirements before you sell your products online to calculate their full impact on shipping costs and profit margin.
DDP also includes customs clearance; that is, the sellers pay for customs clearance. Online merchants who wish to embrace DDP should also carry out thorough research early on and account for the extra cost of customs clearance and its effect on the overall delivery costs and profits.
On the other hand, an online merchant may opt for Delivery Duty Unpaid (DDU), whereby the customer gets contacted as soon as their shipment arrives and has to settle any costs themselves before the customs can release the shipment and deliver it to the customer.
