What are DDP and IOSS?
October 30, 2026
DDP (Delivered Duty Paid) means the seller pays the import duty and taxes for an international parcel, so the customer has nothing to pay on delivery. IOSS (the EU Import One-Stop Shop) lets sellers collect EU VAT at checkout on goods worth up to €150 and pay it in one monthly return.
Why it matters for online retailers
Unexpected import charges are one of the main reasons international customers refuse parcels. Charging duty and VAT up front, through DDP or IOSS, means the parcel is delivered without surprise fees, and returns and refused deliveries fall.
DDP vs DAP
- DDP (Delivered Duty Paid): the seller pays import duty and taxes.
- DAP (Delivered at Place): the customer pays any import charges on delivery. DAP is sometimes called DDU (Delivered Duty Unpaid).
How IOSS works
- It applies to goods sent to EU customers with a value of up to €150.
- You charge the customer the EU VAT at checkout.
- Your IOSS number goes on the shipment's customs data.
- You pay the VAT collected in a single monthly IOSS return.
- Sellers based outside the EU, including the UK, usually need an EU intermediary to register.
- Many marketplaces collect the VAT for you, so check whether IOSS applies to your own-site orders only.
How StoreFeeder handles it
StoreFeeder supports DDP and IOSS shipping through its carrier integrations, so international orders go out with the right customs details from the same despatch process as UK orders.
Read more about StoreFeeder shipping management.
Frequently asked questions
Is IOSS mandatory?
No, but without it your EU customers usually pay VAT and a handling fee when the parcel arrives.
Does IOSS cover orders over €150?
No. Orders over €150 go through normal import customs, where DDP services can still let you pay the charges.
Do I need IOSS if I sell on marketplaces?
Often not for those sales, because large marketplaces usually collect and pay the EU VAT themselves.
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