How does VAT work under Delivery Duty Paid (DDP)?

Delivery Duty Paid (DDP) is an Incoterm used to describe who is responsible for the import VAT on a shipment. DDP makes you – the supplier – the importer of record. 

As the importer of record, you pay for all the import duties, VAT and customs fees involved in getting a shipment to your customer. 

If you’re registered for VAT, you can reclaim the import VAT on your VAT return.