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LandedCost
Import glossary

DDP (Delivered Duty Paid)

Quick answer

DDP means the seller delivers the goods to your door with all costs paid — including import duty and taxes; the buyer just receives them.

Last reviewed 16 July 2026.

DDP (Delivered Duty Paid) places the maximum obligation on the seller. They arrange and pay for everything — export clearance, freight, insurance, import clearance, duty and taxes — and deliver the goods to the buyer's named destination ready to unload. It is the most all-inclusive Incoterm.

For a buyer, DDP looks the simplest: one price, goods at your door, no customs to manage. But that convenience is priced in, and it can hide how much you are really paying in duty and VAT, because those figures are wrapped into the supplier's single number rather than shown separately.

DDP also carries risks for the seller, who must navigate the buyer's country's import rules — and for a UK buyer there is a specific catch around import VAT recovery, since VAT paid by an overseas seller may not generate the import VAT certificate (C79) you need to reclaim it.

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How it affects your landed cost

DDP bundles duty and VAT into one delivered price, which makes it easy to pay but hard to see your true cost structure. Modelling the same shipment on a duty-unpaid basis shows you what the duty and VAT actually are — and whether the DDP premium is worth it. Our calculator breaks a shipment into goods, freight, duty and VAT so you can compare a DDP offer against arranging clearance yourself.

Calculate your landed cost

DDP (Delivered Duty Paid) — FAQ

Can I reclaim import VAT on DDP shipments?
Not always. When an overseas seller pays the import VAT under DDP, the UK import VAT certificate (C79) may be issued in their name rather than yours, which can block recovery. Agreeing who is the importer of record for VAT purposes is essential before you ship DDP.

Related terms

See also

DDP (Delivered Duty Paid)

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