The refused-at-door problem
- Surprise bill at the door. Shopify says that under DAP "the customer is responsible for paying any import costs to the shipping carrier, such as duties, import taxes, or brokerage/disbursement fees upon delivery", and that "some shipping carriers charge additional fees for collecting duties upon delivery" (Shopify Help: carriers and shipping terms).
- Refusal. A gift buyer or a shopper who thought the price was all-in may just say no. The parcel goes back, and you usually pay that return leg.
- Refund or chargeback. They paid and got nothing, so they ask for their money. If you don't refund fast, they go to their bank. See Black Friday chargebacks in the UK.
- WISMO. "Where is my order?" tickets spike while the parcel sits at customs. See reduce WISMO tickets on Black Friday.
DDP vs DAP vs "DDU" in plain English
DDP and DAP are Incoterms® rules published by the International Chamber of Commerce (ICC: Incoterms® 2020). Shopify calls them "the most frequently used incoterms" for duties (Shopify Help: carriers and shipping terms). "DDU" (Delivered Duty Unpaid) is an older name you still see on carrier forms and in merchant talk; it isn't one of the Incoterms® 2020 rules, and in practice merchants use it to mean the same thing as DAP: the buyer pays import charges.
| Term | Who pays import duty/VAT | What Shopify says |
|---|---|---|
| DDP Delivered Duty Paid | Seller | "The seller assumes responsibility for any import costs… You can collect payment for these charges during the checkout process." It "provides customers with a total price" and "helps to avoid shipping delays." |
| DAP Delivered at Place | Customer, on delivery | "The seller is only responsible for shipping the product"; the customer pays import costs to the carrier on delivery, possibly with extra collection fees. |
| "DDU" (informal) | Customer, on delivery | Not used by Shopify Help. Read it as DAP when a carrier or supplier says it. |
Shopify shipping labels: Shopify says DDP labels through Shopify's carrier accounts are supported only for specific carriers when you collect duties at checkout: Canada Post (USA destinations only), DHL Express, DHL Express Canada and DHL eCommerce. With other carriers on Shopify's accounts you can't buy a label for an order where duties were collected; you have to buy the label elsewhere or refund (Shopify Help: carriers and shipping terms). Brokerage/disbursement fees are carrier fees and aren't included in Shopify's duty collection, so Shopify suggests building them into shipping rates.
UK and EU checkout rules (sourced)
United Kingdom (HMRC)
- For consignments of £135 or less from outside the UK sold directly (not via a marketplace) to customers in Great Britain, "UK supply VAT" is charged at the point of sale. The seller must charge and account for it, which means registering for UK VAT (B2B sales with a valid UK VAT number are different) (HMRC: VAT and overseas goods sold directly to customers in the UK).
- The £135 limit is per total consignment, not per item. Low value consignment relief (the old £15 exemption) has been removed.
- Over £135, "normal VAT and customs rules will apply on importation", which is where import VAT and duty can land on the buyer under DAP.
- Northern Ireland has different rules; read the HMRC page.
European Union (Commission)
- The IOSS (Import One Stop Shop) is for sellers "importing low-value goods (up to EUR 150 per order) to EU customers"; "the VAT on the goods imported is collected at the time of payment, which avoids the customer having to pay VAT on delivery." You file a monthly IOSS return in one EU country (Your Europe (EU): VAT One Stop Shop). Non-EU sellers generally need an EU intermediary.
- The EUR 22 VAT exemption was abolished on 1 July 2021, and an import declaration is required for all goods entering the EU regardless of value (European Commission: customs formalities for low value consignments).
- Above EUR 150, IOSS doesn't apply and import VAT and duty are handled at import.
We don't quote duty rates: they depend on the product's HS code, origin and destination (Shopify Help: duties and import taxes). Changes to EU customs duty on low-value parcels are covered in our de minimis guide; we didn't re-verify dates for this page. Not tax advice. Confirm your VAT position with an accountant.
Ops playbook: when to offer DDP
- Map your orders. UK under £135 / EU under €150 with UK VAT or IOSS: VAT is already collected at checkout, so the main risk is orders above those values and duty-bearing goods.
- Turn on duty collection at checkout in Shopify (needs HS codes on products; read Shopify's considerations, since some checkout customisations and destinations aren't supported) (Shopify Help: duties and import taxes).
- Or use a shipping tool that quotes duties and taxes at checkout and buys DDP labels across more carriers. Easyship is the one we link.
- Dropshipping? Ask your supplier whether they ship DDP to the UK/EU and whose VAT number goes on the parcel.
- Message it. On the product page, cart and shipping policy: "Prices include UK VAT. No extra charges on delivery" (only if true). For DAP lanes, say clearly: "Your carrier may ask for import VAT, duty and a handling fee before delivery."
- Refusal policy. Write down what you refund if a DAP parcel is refused (e.g. product minus return shipping) and link it from checkout. See our refund policy example.
See Easyship duties & taxes at checkout affiliate link
If your supplier is the problem, Zendrop and Spocket both market suppliers with faster UK/EU shipping. Check each supplier's terms; we didn't verify DDP coverage per supplier.
See Zendrop affiliate link
See Spocket UK/EU suppliers affiliate link
The cost of getting it wrong
| What happens | Who pays | Read next |
|---|---|---|
| Parcel refused, returned | You (return leg, often non-refundable outbound) | - |
| Customs hold, tracking stalls | Your support team | WISMO on BFCM |
| "Not received" chargeback | You (amount + fee) | BFCM chargebacks UK, PayPal item not received |
| Arrives after Christmas | You (refunds, reviews) | Christmas cut-off dates 2026 |
When a refused or lost parcel turns into a claim, Claimify, our own Shopify app, logs it with photos and outcomes so you have the record before the bank asks.
Log refused and not-received parcel claims (Claimify) Our own app affiliate link
Who should skip this
- Domestic-only stores (UK stock to UK buyers, or EU stock within the EU): no import step.
- Stores that only sell through marketplaces that collect VAT for you: different rules apply (see HMRC).
- Very low cross-border volume: clear DAP messaging and a refusal policy may be enough.
Verdict
If UK/EU buyers are paying at the door, you will see refusals, returns and chargebacks. Collect VAT at checkout where HMRC (£135) and IOSS (€150) rules require or allow it, offer DDP for duty-bearing orders, and say clearly in checkout what is included. Easyship is the simplest way to quote duties at checkout across carriers. Not tax or legal advice.
Compare DDP shipping rates (Easyship) affiliate link affiliate link
Facts from HMRC, European Commission, ICC and Shopify Help pages opened 5 Nov 2026. Easyship, Zendrop and Spocket are third-party (affiliate links); Claimify is our own app. Not tax advice.