DDP vs DAP (DDU) for Etsy, eBay and Shopify sellers: who pays duty in the US, UK, EU and Canada (2026)
DDP means you prepay the buyer's import duty and tax, so nothing is due at the door. DAP, often still called DDU by carriers, means the buyer pays them, plus a carrier fee, on delivery. In 2026 the choice is often made for you: US postal parcels must be prepaid, UK and EU orders up to £135 / €150 have VAT charged at checkout, and Shopify Managed Markets dropped DDU. Here is what applies where, with an official source and date on every rule.
What DDP, DAP and DDU mean
HMRC’s Incoterms guidance: under DDP (Delivered Duty Paid) the seller clears the goods for import, pays any import duty and carries out all customs formalities. Under DAP (Delivered at Place) the seller bears the risks of bringing the goods to the named place, ready for unloading; the guidance lists import clearance and import duty as seller obligations only under DDP. Incoterms are ICC rules, not set by HMRC, and the current list (EXW to DDP) has no "DDU".
Etsy explains that with DDU (Delivered Duty Unpaid) shipping, the buyer pays any tariffs, duties, taxes and carrier handling fees when the order arrives. Etsy recommends DDP, where the seller prepays them when buying the label, because it gives a clearer checkout and can reduce delays, refused parcels and surprise charges.
For small parcels, "DDU" or "DAP" is how carriers and marketplaces describe "buyer pays import charges on delivery". The legal importer and who is billed depend on your carrier's service, so check its terms.
Which one you can use, by destination
| Buyer in | Small orders | Larger orders | If the buyer pays on delivery |
|---|---|---|---|
| United States | No duty-free limit. By post, duties must be prepaid (DDP). | Same: duty on every order. Couriers usually offer DDP or DDU. | Courier clearance fee on top of the duty. |
| United Kingdom | £135 or less: UK VAT charged at checkout by you or the marketplace. The buyer cannot pay it on delivery. | Above £135: import VAT and duty, DDP or DDU. | Royal Mail £8, Parcelforce £12 (£25 over £900), couriers their own fee. |
| European Union | €150 or less: VAT at checkout with IOSS (marketplace or your own number), plus the €3 duty per item owed by the declarant; or VAT and duty on delivery without IOSS. | Above €150: no IOSS; duty and VAT at import, DDP or DDU. | Postal operator or courier clearance fee. From 1 Nov 2026 the €2 handling fee per item applies either way. |
| Canada | By post, nothing due up to CAD 20. Courier from outside the US/Mexico: free only up to CAD 20. | Duty and GST/HST (plus provincial tax), DDP or DDU. | Canada Post CAD 9.95 per dutiable or taxable item; couriers their own fee. |
This table summarises the facts below; the sourced wording is in each fact.
United States
The US $800 duty-free de minimis exemption has been suspended for commercial shipments from every country since 29 August 2025. Every shipment, whatever its value, now goes through customs entry and pays any applicable duty. What the end of de minimis means
Postal parcels to the US must have duties prepaid (Postal Delivered Duty Paid, PDDP). In practice, sending by post with the buyer paying duty on delivery (DDU) is generally not available.
United Kingdom
For consignments worth £135 or less (goods value, excluding transport if shown separately), the overseas seller must charge UK VAT at the point of sale and register for UK VAT. If the sale goes through an online marketplace, the marketplace does this instead. No import VAT is charged at the border. UK £135 VAT rule for overseas sellers
Above £135, normal import VAT and customs duty apply at the border, paid by the buyer (DDU) or prepaid by the seller (DDP).
When the buyer pays on delivery, Royal Mail charges an £8 handling fee and Parcelforce £12 (£25 for goods over £900). Couriers charge their own fees.
European Union
For consignments of €150 or less, VAT can be charged at checkout through the Import One-Stop Shop (IOSS), at the buyer's country rate. Marketplaces handle this for sales made through them. Non-EU sellers registering for IOSS themselves generally need an EU-established intermediary. Do I need an IOSS number?
The €3 duty is owed by the declarant: the seller or importer (IOSS holder, special-arrangement user or their indirect representative). The consumer pays it only in residual cases.
Without IOSS, import VAT is collected from the buyer on delivery. The postal operator or courier usually adds its own clearance fee.
Above €150, IOSS cannot be used. Import VAT and customs duty (normal tariff rate) are due at import, paid by the buyer (DDU) or prepaid by the seller (DDP via a courier).
From 1 November 2026 a Union handling fee of €2 per item (per declaration line, i.e. per distinct tariff line) applies to goods sold in distance sales (B2C e-commerce) to EU consumers from outside the EU, at any value, including over €150. It is in addition to the €3 duty, is not part of the customs value, is paid by the declarant (seller/IOSS holder, carrier or representative), has VAT charged on it, cannot be refunded (even on returns), and does not apply to private gifts. The amount is final: Commission Delegated Regulation (EU) 2026/2152 was published in the Official Journal (L series) on 21 October 2026. The €2 handling fee explained
Canada
Mail into Canada worth CAD 20 or less pays no duty or tax. Books, periodicals, alcohol and tobacco are excluded. Person-to-person gifts up to CAD 60 are exempt. Customs gift allowances by country
Courier shipments from other countries (UK, EU, Australia…) are only free of duty and tax up to CAD 20.
On dutiable or taxable mail, Canada Post charges the buyer a CAD 9.95 handling fee per item, on top of duty and taxes. UPS, FedEx and Canada Post fees in Canada
Worked examples: what the buyer pays at the door
Results from our calculator for shipments on or after 1 November 2026, sold on your own shop (no marketplace), free shipping. "DDP: you prepay" is the duty, tax and fees you must collect in your price.
| Route | Order | DDP: you prepay | DDP: buyer pays at door | DDU: buyer pays at door | Try it |
|---|---|---|---|---|---|
| UK → EU (Germany) | €40 T-shirt, 1 item, post | €12.98 | €0.00 | €13.55 | DDP · DDU |
| US → UK | £60 silver jewellery, courier | £12.00 | £0.00 | £0.00 | DDP · DDU |
| UK → Canada (Ontario) | CAD 60 item with a 0% Canadian duty rate, post | CA$7.80 | CA$0.00 | CA$17.75 | DDP · DDU |
The Canada example assumes a product whose Canadian duty rate is 0%, so only sales tax and the Canada Post fee are shown: check your own product's rate in the Canadian customs tariff and enter it in the calculator (Canadian product rates are not preset in our data yet). The EU example uses Germany's 19% VAT. Carrier fees are only included where a published figure exists.
Etsy, eBay and Shopify
Etsy: US-bound orders must use DDP shipping to qualify for Etsy Purchase Protection. Etsy does not collect US tariffs itself; your carrier or DDP service does.
Etsy: UK sellers can buy Royal Mail International Tracked DDP labels on Etsy for US orders. Canada Post and Evri US-bound labels on Etsy have been suspended since 25 August 2025. Etsy lists Chit Chats as a Canadian DDP option that can apply the USMCA exemption. Etsy DDP guide for UK sellers
eBay UK recommends the Global Shipping Programme for US buyers, because it shows tariffs and fees at checkout. Royal Mail US services have been disabled on eBay Labels since 26 August 2025, so Royal Mail PDDP postage has to be bought off-platform. (eBay's page was last updated 26 Feb 2026.)
Shopify Managed Markets stopped supporting DDU on 24 August 2026 in every market where it supports DDP, so buyers pay duties and taxes at checkout. To let buyers pay on delivery instead, you must switch Managed Markets off.
How to choose
- US buyers: use a DDP label or service. By post there is no real alternative, and Etsy Purchase Protection for US orders needs DDP.
- UK buyers up to £135 and EU buyers up to €150: if you sell through a marketplace, it charges the VAT at checkout. Selling on your own site, you need UK VAT registration or IOSS to do the same; without IOSS, EU buyers pay VAT and a fee at the door.
- Larger orders: DDP avoids refused parcels and surprise bills, but you carry the cost and need a carrier service that can prepay. DDU keeps your price lower, but say clearly in the listing that the buyer pays import charges and a carrier fee.
- Price the charges in: use the calculator to see the duty, tax and fees for your route, then add them to a destination price or your shipping charge.
- Returns: duty prepaid under DDP is not refunded automatically. See international returns and duty refunds.
Shipping DDP to the US and named as importer of record yourself? From 5 January 2027 the entry must go through a CTPAT-validated broker: see the US foreign importer of record rule.
Route details: Jewellery import duty · Art and antiques · Etsy DDP from the UK to the US · UK to Ireland · EU €3 duty per item · India to EU · India to US · India to UK · China to US · Türkiye to US · Hong Kong to US · Taiwan to US · Vietnam to US · Thailand to US · Australia to US · Germany to US · Italy to US · France to US · Spain to US · Netherlands to US · Ireland to US · Austria to US · Poland to US · Portugal to US · Greece to US · Belgium to US · Philippines to US · New Zealand to US · China to EU · China to UK · Japan to UK · US de minimis ended · Canada GST/HST for sellers abroad · all route guides. Selling from your own shop? See IOSS for EU orders and the UK £135 VAT rule.
Shipping to Norway, Switzerland, Australia, New Zealand or Singapore? See selling to Norway (VOEC), selling to Switzerland: the CHF 5 VAT rule, selling to Australia: GST up to A$1,000, selling to New Zealand: GST up to NZ$1,000 and selling to Singapore: GST up to S$400.
This page is general information, not legal, tax or customs advice. Marketplace and carrier terms change; check their current pages linked above. See the disclaimer.
Sources for this page
- Incoterms (customs valuation guidance), HMRC (GOV.UK). Accessed 25 Oct 2026. Verified
- Information for Managing International Shipments, Etsy Help. Accessed 10 Nov 2026. Verified
- Sending packages to the U.S. – duty updates, Canada Post. Accessed 20 Oct 2026. Verified
- Shipping to the USA? – business updates (guide updated 6 Oct 2026), Royal Mail. Accessed 5 Nov 2026. Verified
- CBP modernizes low-value shipment processing (24 Jun 2026), U.S. Customs and Border Protection. Accessed 27 Oct 2026. Verified
- US-Versand / Postal DDP, Deutsche Post DHL. Accessed 4 Nov 2026. Verified
- VAT and overseas goods sold directly to customers in the UK, HMRC / GOV.UK. Accessed 26 Oct 2026. Verified
- Pay a fee (customs charges), Royal Mail. Accessed 5 Nov 2026. Verified
- Pay a customs charge for parcel deliveries, Parcelforce Worldwide. Accessed 20 Oct 2026. Partly verified
- Customs formalities for low value consignments (IOSS), European Commission – Taxation and Customs Union. Accessed 20 Oct 2026. Verified
- VAT One Stop Shop: overview of the OSS schemes, deemed supplier and intermediary (import scheme), European Commission. Accessed 26 Oct 2026. Verified
- Guidance and legal text on temporary flat fee on low-value imports (8 Jun 2026, updated 20 Jul 2026), European Commission, DG Taxation and Customs Union. Accessed 22 Oct 2026. Verified
- Commission welcomes Council agreement on removing the €150 threshold for the VAT Import One-Stop Shop (9 Nov 2026), European Commission, Taxation and Customs Union. Accessed 10 Nov 2026. Verified
- Commission Delegated Regulation (EU) 2026/2152 of 21 September 2026 establishing the amount of the Union handling fee (OJ L, 21 Oct 2026), Official Journal of the European Union (EUR-Lex). Accessed 23 Oct 2026. Verified
- Handling fee for e-commerce (last update 22 Oct 2026), Dutch Customs (Douane). Accessed 3 Nov 2026. Verified
- Union Handling Fee (UHF) – 1 November 2026 (published 30 Sep 2026), Revenue (Irish Tax and Customs). Accessed 22 Oct 2026. Verified
- Commission sets Union handling fee at EUR 2 per item (2 Oct 2026), CLECAT (industry association, secondary). Accessed 20 Oct 2026. Verified
- Importing by mail or courier – Determining duty and taxes owed, Canada Border Services Agency. Accessed 27 Oct 2026. Verified
- Customs duty, taxes, and exemptions, Canada Post. Accessed 10 Nov 2026. Verified
- Increase to low-value shipment thresholds (CUSMA courier de minimis), Canada Border Services Agency. Accessed 27 Oct 2026. Verified
- Navigating Evolving Global Tariff Policies, Etsy Seller Handbook. Accessed 20 Oct 2026. Partly verified
- US Tariffs – UK Seller Centre (updated 26 Feb 2026), eBay UK. Accessed 20 Oct 2026. Verified
- Managed Markets is ending Delivered Duty Unpaid (DDU) support (11 Aug 2026), Shopify Changelog. Accessed 25 Oct 2026. Verified
Rules change often: the latest change we tracked was on 10 Nov 2026 (US: the 178 China Section 301 product exclusions are extended to 9 January 2027). Alerts send one short email, with the source, only when a rule changes on a route you pick.
Compare DDP and DDU in the calculator Get rule-change alerts