- Incoterms like DAP (Delivered at Place) and DDP (Delivery Duty Paid) define who is responsible for shipping costs, risks, and customs duties in international ecommerce.
- Under DAP, the seller arranges delivery, but the customer is responsible for import VAT, duties, and customs clearance, making the customer the importer of record.
- Under DDP, the seller assumes full responsibility for export and import clearance, transport, and all duties and taxes, making the seller the importer of record.
- The choice between DAP and DDP depends on your business goals, but DDP is generally recommended for B2C ecommerce to simplify the customer experience.
Source: simplyvat.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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