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What DDP means when you sell goods to the UK
A DDP sale to the UK makes you responsible for the import. Delivered Duty Paid is the Incoterm where the seller delivers the goods with duties paid, customs clearance completed and no payment due from the customer on arrival.
For the UK customer, the experience is simple. They receive the goods as if they had ordered from a domestic UK supplier. For you, the seller, the operation is heavier: you must organise customs clearance, pay or account for import VAT, pay any customs duties and issue a compliant UK VAT invoice. A fiscal representative in the United Kingdom can handle the import side for non-established EU sellers.
The two identifiers you need before invoicing under DDP
You cannot run a clean DDP flow into Great Britain without local UK identifiers. Since Brexit, Great Britain is outside the EU VAT area, so intra-Community VAT rules do not apply to these movements. The full VAT rules in the United Kingdom article explains how UK VAT diverges from EU rules post-Brexit.
1. GB EORI number
Your GB EORI is your customs identity in the UK. A French or EU EORI number is not enough for an import declaration into Great Britain. Your customs broker or carrier needs a GB EORI to link the import declaration to your business.
Without it, the carrier cannot properly declare the import in your name. The result is predictable: delays, manual intervention, storage costs and, in some cases, goods stuck at the border.
2. UK VAT number
Your UK VAT number is what makes the import VAT and final sale workable. Under DDP, you pay or account for import VAT when the goods enter the UK, then you make a domestic UK sale to the customer. The procedure to obtain a UK VAT number is covered step by step in the dedicated guide.
That creates three consequences:
- You need a UK VAT return to recover import VAT as input VAT.
- You charge UK VAT on the final customer invoice.
- You remit the VAT collected to HMRC through your UK VAT return.
How to invoice a UK customer under DDP
The correct DDP flow has two separate documents: a customs invoice and the final customer invoice. Mixing the two is where most compliance errors start.
Step 1: Price the landed cost
Your sales price must absorb every DDP cost. Before issuing the invoice, calculate the landed cost and protect your margin.
Include at least:
- Product value
- International transport
- Customs duty, which is not recoverable VAT
- Customs broker or carrier clearance fees
- Any storage, disbursement or handling charges
- Import VAT cash-flow impact if you do not use postponed VAT accounting
Step 2: Issue the commercial invoice for customs
The customs invoice is used by the carrier or customs broker at the UK border. It should show the value of the goods excluding VAT and the information needed for import clearance.
At minimum, include:
- Seller and buyer details
- Your GB EORI number
- Delivery terms: Incoterm DDP, named UK place of delivery
- Description of goods
- Commodity codes, also called HS codes
- Country of origin
- Quantity, unit value and total customs value
- Currency used
Step 3: Clear the goods and account for import VAT
Import VAT is dealt with at the point of import, not on the final customer invoice. Your carrier or customs broker clears the goods and either pays import VAT and duties upfront on your behalf, or uses postponed VAT accounting where available.
Postponed VAT Accounting (PVA) lets a UK VAT-registered business declare and recover import VAT on the same VAT return instead of paying it at the border first. The normal input VAT recovery rules still apply. The UK VAT return guide covers how to declare and recover import VAT under MTD.
Step 4: Issue the final invoice to the UK customer
The final sale is treated as a domestic UK sale. Once you have imported the goods into the UK, you invoice the customer with your UK VAT number and UK VAT at 20%, unless a reduced or zero rate applies to the specific goods.
For a standard-rated product, the invoice logic is:
- Net sale price
- UK VAT at 20%
- Gross total payable by the UK customer
Do not charge French VAT on the customer invoice. The French leg is an export; the DDP customer sale is made locally in the UK after import.
Mandatory invoice details for a DDP sale to the UK
A DDP invoice must be clear enough for HMRC, customs and the customer. The customer invoice should not look like a standard EU intra-Community invoice, because this is not an intra-Community supply.
| Invoice detail | What to show | Why it matters |
|---|---|---|
| Seller VAT number | Your UK VAT number | Required to charge UK VAT and support the customer's input VAT recovery |
| Seller customs ID | Your GB EORI number | Links the import to you as importer of record |
| Incoterm | Incoterm DDP - [delivery city], United Kingdom | Confirms that duties and import costs are seller-paid |
| VAT rate and amount | UK VAT rate, VAT amount and gross total | Required for a compliant UK VAT invoice |
| Commodity code | HS / commodity code for each product | Used for customs duty and controls |
| Country of origin | Product origin by line where relevant | Determines duty treatment under UK-EU origin rules |
| Currency and FX rate | Currency used and VAT conversion details when needed | HMRC expects VAT records to be traceable |
B2C and B2B invoices under DDP
The VAT logic is the same, but the commercial expectations differ. In both cases, you act like a UK supplier for the final sale.
| Scenario | How to invoice | Customer impact |
|---|---|---|
| B2C sale | Show the VAT-inclusive price and UK VAT breakdown | The consumer pays nothing to the carrier on delivery |
| B2B sale | Issue a VAT invoice with your UK VAT number and UK VAT amount | The UK business can usually recover input VAT if normal recovery conditions are met |
For B2B, the key point is psychological as much as fiscal. A UK company does not want a carrier invoice for unexpected duty and import VAT after delivery. DDP removes that friction, but only if your invoice and import records are clean.
DDP vs DAP for UK deliveries
DDP gives the cleanest customer experience, while DAP protects the seller from UK import administration. The right choice depends on your margin, customer type and operational capacity.
| Point | DDP | DAP |
|---|---|---|
| Importer of record | Seller | Usually buyer |
| Who pays import VAT and duty | Seller | Buyer at delivery or through their broker |
| UK VAT registration for seller | Usually required for a compliant flow | Usually not required |
| Customer experience | No surprise cost on delivery | Possible duty/VAT payment request on delivery |
| Best fit | B2C, e-commerce, premium B2B service | B2B customers used to customs formalities |
| Main risk | Margin erosion and UK compliance exposure | Delivery refusal or unhappy customer |
Main risks when invoicing a UK customer under DDP
The biggest DDP risk is not the invoice itself; it is the broken chain behind the invoice. If the VAT registration, EORI, customs declaration and invoice do not match, HMRC and the carrier will not see a coherent import flow. Review the VAT in the United Kingdom guide for current rates and official compliance references.
Watch these points before shipping:
- No GB EORI number before the import declaration
- No UK VAT number before charging UK VAT
- French VAT charged instead of UK VAT
- DDP shown commercially but DAP handled operationally by the carrier
- Missing commodity codes or country-of-origin details
- Customs duty forgotten in the sales price
- Import VAT paid but not recoverable because no UK VAT return is filed
- FX rate missing when invoicing in GBP but accounting in EUR
Secure your UK DDP flow before the first shipment
A UK DDP invoice is only compliant if the import setup is already compliant. Get the GB EORI, UK VAT registration, customs broker instructions, landed-cost model and invoice template ready before you promise Delivered Duty Paid terms to a UK customer.
Eurofiscalis can handle UK VAT registration, VAT returns and the operational VAT setup for businesses selling into the United Kingdom. The practical objective is simple: your UK customer receives the goods without a customs surprise, and your business keeps the VAT and margin under control.
FAQ
Should I charge French VAT or UK VAT under DDP?
Under DDP, you do not charge French VAT on the final UK customer invoice. The movement from France is an export, then the final sale is treated as a domestic UK sale. You invoice with your UK VAT number and charge UK VAT at `[rates_uk_s]`, unless the goods qualify for another UK VAT rate.
Who pays customs duty under DDP?
The seller pays customs duty under DDP. You should include duty in the final sales price because you cannot ask the customer to pay it on delivery without contradicting the DDP promise.
How do I recover UK import VAT paid at the border?
You recover UK import VAT through your UK VAT return as input VAT, subject to the normal recovery rules. If you use Postponed VAT Accounting, you declare and recover import VAT on the same VAT return instead of paying it upfront at the border.
Can I sell under DDP without a GB EORI number?
No. Without a GB EORI number, your carrier or customs broker cannot correctly lodge the UK import declaration in your name. The goods may be delayed, blocked or cleared under the wrong party.
Is DDP better than DAP for UK customers?
DDP is usually better for B2C and e-commerce because the customer pays nothing on delivery. DAP is often simpler for B2B shipments where the UK buyer already manages customs clearance, import VAT and duty through its own broker.
Countries concerned
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