Incoterms 2020 compared

DDP vs DAP: which Incoterm should you use?

DDP (Delivered Duty Paid) versus DAP (Delivered At Place) — who pays freight, where risk transfers, and what each choice does to your landed cost. Last reviewed 16 July 2026.

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Quick answer

Both deliver to your door, but under DAP the buyer clears import and pays duty and VAT; under DDP the seller does — including import clearance.

Main freight paid byDDP: Seller · DAP: Seller

Import clearanceDDP: Seller · DAP: Buyer

DDP vs DAP at a glance

Factor	DDP — Delivered Duty Paid	DAP — Delivered At Place
Group	D — Arrival	D — Arrival
Transport mode	Any mode	Any mode
Who pays main freight	Seller	Seller
Insurance obligation	No obligation on either party (seller carries risk to destination)	No obligation on either party (seller carries risk to destination)
Risk transfers	At the named place of destination, cleared for import and ready for unloading	At the named place of destination, on the arriving vehicle ready for unloading
Export clearance	Seller	Seller
Import clearance	Seller	Buyer
Best for	Landed-price sales where the buyer wants zero customs work — seller pays duty and import VAT	Delivered-to-door sales where the buyer clears import and pays duty and VAT

Based on the Incoterms 2020 rules (ICC). Always confirm the exact obligations in your sales contract — as of 16 July 2026.

When to choose DDP

Choose DDP when you want a fully landed, duty-paid price and no customs involvement at all. It works best when the seller can act as importer of record in your country and you value simplicity over cost transparency — for example, sample shipments or buyers with no import setup.

When to choose DAP

Choose DAP when you want door delivery but prefer to be the importer of record — clearing customs and paying duty and import VAT yourself. For VAT-registered businesses this is usually the smarter default: you keep control of the customs value, reclaim import VAT cleanly (or postpone it via PVA), and avoid the hidden margin sellers add when they front duty under DDP.

What it does to your landed cost

The only real difference is who handles import clearance and taxes — but that difference moves money. Under DDP the seller pays duty and import VAT and bakes it back into the price, often with a markup, and the VAT may not be reclaimable by you. Under DAP you pay duty and VAT directly on a customs value you control, and VAT-registered importers can recover or postpone the VAT. That can swing the effective landed cost by the full VAT amount. Model both in the calculator to see it per unit.

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DDP vs DAP — FAQ

Is DAP or DDP better for a VAT-registered importer?

Usually DAP. You act as importer of record, so import VAT is charged in your name and can be reclaimed — or postponed via PVA — and you see the true customs value. Under DDP the seller pays the VAT, often unrecoverable by you, and marks up the duty.

Who pays import duty under DAP?

The buyer. DAP delivers the goods to the destination ready for unloading, but import clearance, duty and VAT are the buyer's responsibility. Only DDP shifts those to the seller.

Term definitions

DDP — Delivered Duty Paid →

Landed-price sales where the buyer wants zero customs work — seller pays duty and import VAT

DAP — Delivered At Place →

Delivered-to-door sales where the buyer clears import and pays duty and VAT

Related comparisons

EXW vs DDP →FOB vs DDP →DAP vs DPU →

— DDP vs DAP

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