DutyReady

Guide

IOSS, DDP and DAP, explained for small sellers

Three acronyms decide who pays the EU's import charges and when. Getting them wrong is the main reason parcels get refused.

IOSS: VAT only

The Import One-Stop Shop lets you (or your marketplace, or an intermediary) charge EU VAT at checkout on parcels worth €150 or less, so the customer pays nothing extra at delivery for VAT. It does not cover customs duty, including the €3 per-item duty that started on 1 July 2026. Marketplaces such as Etsy collect VAT on EU orders themselves; check their help pages for how they treat the €3 duty.

DDP: you pay, customer doesn't

Delivered Duty Paid means duties and taxes are collected at checkout or absorbed by you, and the customer pays nothing at the door. Shopify Managed Markets and duties-at-checkout setups work this way.

DAP: customer pays at delivery

Delivered At Place means the customer is asked for any duty or tax on arrival, usually plus a carrier handling fee that can be larger than the duty. This is the default if you do nothing, and it's what leads to refused parcels and unhappy reviews.

A sensible setup for a small shop

  1. Make sure VAT is handled through IOSS or your marketplace.
  2. Collect or absorb the €3 duty: build it into EU prices or add a small EU handling line.
  3. Say clearly in your shipping policy that EU customers won't pay anything on delivery.
  4. Put correct HS codes and product IDs on every product so declarations go through cleanly.

General information, not legal or customs advice. Six-digit HS codes are the same worldwide; the EU adds digits (CN 8-digit, TARIC 10-digit). Confirm in the EU TARIC database or with your carrier for unusual products. Last reviewed October 2026.