If you've been researching post-Brexit EU shipping, you've probably encountered the terms DDP and DAP. They appear in courier documentation, customs guidance, and shipping platform settings — often without much explanation.

Here's what they actually mean for a UK small business, without the jargon.

The core question: who pays the customs charges?

When a parcel from the UK arrives at EU customs, someone has to pay the import duty and VAT before it can be released. The question is whether that someone is you (the seller) or your customer (the buyer).

That's essentially what DDP and DAP determine.

DAP — Delivered at Place

DAP stands for Delivered at Place. Under DAP terms, you as the seller arrange and pay for shipping to your customer's address. But you don't cover the import charges. When the parcel arrives at EU customs, your customer is responsible for paying any duty and VAT before taking delivery.

DAP is the default for most UK small business shipments. If you haven't specifically arranged anything else, you're almost certainly shipping DAP.

The problem with DAP is that your customer often doesn't know they'll face charges until the courier knocks on their door. That's the scenario that causes refused deliveries, negative reviews, and unhappy customers.

You may also see DAP referred to as DDU — Delivered Duty Unpaid. It's the same thing. DDU is the older term that DAP replaced, but many people still use it.

DDP — Delivered Duty Paid

DDP stands for Delivered Duty Paid. Under DDP terms, you as the seller cover all costs — shipping, import duty, and destination VAT — before the parcel is delivered. Your customer pays a single price at checkout and receives their parcel with no additional charges.

From your customer's perspective, DDP is seamless. The parcel arrives, they sign for it, done. No surprise bills, no customs paperwork, no decisions to make at the door.

From your perspective, DDP means you're taking on the cost and complexity of calculating and paying import charges in advance. You need to either use a carrier that offers DDP services, or register for the EU's IOSS scheme for orders under €150.

Which one should you use?

For most UK small businesses shipping occasional parcels to EU customers, DAP with clear communication is the practical choice. You ship normally, but you tell your customers upfront what they'll face on delivery — using a tool like ClearShip to calculate the exact amount.

For businesses with significant EU sales volume — say, more than 20–30 EU shipments per month — DDP starts to make commercial sense. The investment in setting it up pays off through lower return rates, better reviews, and stronger customer relationships.

The €150 threshold changes things

For orders under €150, the EU's IOSS scheme allows sellers to collect VAT at checkout and remit it directly to EU tax authorities. This is effectively DDP for low-value orders, and platforms like Etsy handle it automatically.

For orders above €150, you're into full DDP/DAP territory and the choice becomes more significant.

The honest bottom line

Most UK small businesses ship DAP because it's the default and requires no setup. The key is to stop pretending DAP doesn't have consequences for your customers. Calculate the landed cost, communicate it clearly, and you'll have far fewer problems than competitors who are still leaving EU customers with unexpected bills at the door.