DDP Shipping and EORI Numbers: Seller vs Buyer Duties

Delivered Duty Paid (DDP) is the most buyer-friendly Incoterm you can offer: the customer pays one price and receives their goods with no surprise duty, VAT or customs handling bills at the door. It is a powerful selling point for e-commerce and B2B alike — but it shifts every customs obligation onto you, the seller. That includes acting as importer of record in the destination country, which almost always means you need an EORI number there. This guide explains whose EORI goes on the declaration, why a Shopify or Alibaba "we ship DDP" promise can go badly wrong, and the safer alternatives if you would rather not take on the burden.

What DDP actually commits the seller to

Under DDP, the seller is responsible for the goods all the way to the buyer's door, including:

• Export clearance in the origin country.
• Transport and insurance to the destination.
• Import clearance in the destination country — acting as importer of record.
• Paying import duty and import VAT.
• Delivery to the named place.

The key phrase is "importer of record". Whoever is named as the importer on the customs declaration must hold a valid EORI number issued by that customs territory. For a DDP shipment, that party is the seller — not the buyer. This is where the trouble starts.

Why DDP sellers usually need a destination-country EORI

An EORI number is territory-specific. A GB EORI works for imports into Great Britain; an EU EORI (issued by any single member state) works across the EU customs union. If you are a UK seller shipping DDP into Germany, your GB EORI is useless on the German import declaration — you need an EU EORI. If you are an EU or US seller shipping DDP into the UK, you need a GB EORI.

This is the single most common mistake we see. A merchant ticks "DDP" in their carrier portal or agrees DDP terms on Alibaba, assuming the courier "handles everything". The courier can lodge the declaration, but it still needs an importer EORI in the destination country — and if the seller does not have one, the shipment stalls, gets reassigned to the buyer, or is returned.

You can check whether a number is valid before you rely on it using our EORI number checker. If you are UK-based and unsure how the GB system works, our overview of EORI numbers in the UK covers eligibility and application.

Incoterms and EORI: matching responsibility to registration

The Incoterm you choose decides who is the importer of record, and therefore whose EORI is required. Getting this wrong causes cleared-but-wrong declarations, incorrect VAT recovery, and disputes with customers.

Note that DDU is not part of the current Incoterms rules — DAP replaced it — but the term is still used loosely in the trade to mean "buyer pays duty on arrival". The practical effect is the same: with DAP or DDU, the buyer clears customs and needs their own EORI, not you.

IOSS does not replace an EORI for DDP

Sellers into the EU often assume the Import One-Stop Shop (IOSS) covers them. It does not replace an EORI for DDP consignments. IOSS is a VAT-collection scheme for business-to-consumer goods with an intrinsic value of €150 or less, letting you charge VAT at checkout and remit it monthly rather than at the border.

• IOSS handles import VAT on low-value B2C parcels — it does not clear the goods or pay any customs duty.
• IOSS does not apply to consignments over €150, to most B2B shipments, or to excise goods.
• You can use IOSS and still need an EORI depending on the lane and value.

For DDP orders above €150, or where duty applies, you are back to needing a full import declaration with a valid EORI as importer of record. Treat IOSS as a VAT simplification, not a substitute for customs registration.

Fiscal representation for non-UK/EU sellers

If your business has no establishment in the destination territory, you may still be able to register — but there are practical hurdles:

• Importing into the EU as a non-EU business: most member states require you to appoint a fiscal representative or an indirect customs representative who is jointly liable for the VAT and duty. Many customs agents will only act for you if you have an EU VAT registration and EORI in place.
• Importing into the UK as a non-UK business: you can obtain a GB EORI even without a UK establishment, but you will typically need a UK-based intermediary or a customs agent acting on your behalf to handle declarations, and you may need to register for UK VAT depending on your activity.

These arrangements have real costs — representation fees, VAT registration, and ongoing compliance — which need to be built into your DDP pricing. Underprice the lane and DDP can quickly erode your margin.

Safer alternatives to DDP

If the compliance load of being importer of record abroad is more than you want to carry, consider these options:

1. Sell DAP (buyer as importer): the buyer clears customs and pays duty and VAT. You avoid needing a destination EORI entirely. The trade-off is a less smooth buyer experience.
2. Landed-cost DDP via a carrier programme: some couriers offer a "DDP-lite" where they act as importer using their own arrangements and bill you the duty. Confirm exactly who is named as importer of record before relying on this.
3. Set up a local entity or warehouse: for high-volume lanes, importing in bulk into a destination warehouse (with your own local EORI and VAT number) and fulfilling domestically avoids per-parcel DDP clearance.

Whichever route you pick, make the Incoterm explicit on your invoices, storefront terms and carrier bookings so there is no ambiguity about who clears the goods.

DDP launch checklist

Before you switch on a DDP lane, work through this list:

• Confirmed you are importer of record and understand the liability.
• Obtained a valid EORI in the destination territory (GB EORI for UK, EU EORI for the EU).
• Registered for VAT in the destination country if required, and IOSS if selling low-value B2C into the EU.
• Appointed a customs agent or fiscal/indirect representative where needed.
• Classified your goods with correct commodity codes and confirmed duty rates.
• Built duty, import VAT and representation fees into your DDP price.
• Validated your EORI in the EORI checker so declarations will not bounce.

Next step

DDP is a great customer experience, but only if the customs paperwork is right behind the scenes. Start by securing the correct EORI in the country you are shipping to — our guide on how to get an EORI number walks through the application for both GB and EU registrations. Once you have your number, validate it before your first DDP shipment so you are not caught out at the border.