EStore Tools

DDP vs DAP Calculator

See exactly who pays duty, tax and fees under DDP and DAP, and what a surprise charge at the door costs the buyer.

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Couriers such as DHL, FedEx and UPS often charge a fee for collecting duty and tax on delivery. Each carrier sets its own fee: check yours. This is a common example figure.

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Extra the buyer pays at the door under DAP

$46.20

Under DDP the buyer pays $135.00 total, and nothing more. Under DAP they pay $135.00 at checkout, then $46.20 more to receive the parcel: $181.20 in total.

DDP: buyer pays
$135.00
DDP: seller absorbs
$43.20
DAP: buyer pays at the door
$46.20

A surprise charge at the door is one of the most common reasons international parcels are refused or abandoned in customs. If you can register for tax where your customers are (for example the EU's IOSS or the UK's £135 scheme), DDP-like pricing at checkout avoids this without full DDP customs paperwork.

Breakdown

Duty
$6.00
Import tax
$25.20
Duty + tax
$31.20
DDP: broker fee (seller pays)
$12.00
DDP: total cost the seller absorbs
$43.20
DAP: disbursement fee (buyer pays)
$15.00
DAP: total the buyer pays at the door
$46.20
DAP: buyer's grand total (checkout + door)
$181.20

The same order, two different bills

Under DDP (Delivered Duty Paid), the seller pays duty, import tax and clearance, and the buyer's price at checkout is the final price. Under DAP (Delivered at Place), the seller ships to the buyer's door, but the buyer owes duty, tax and often a courier's disbursement fee before the parcel is released.

DAP: extra at the door = duty + import tax + courier disbursement fee

Example: the default numbers ($120 goods, $15 shipping, 5% duty, 20% tax)

Duty: 5% × $120
$6.00
Import tax: 20% × ($120 + $6)
$25.20
DDP: seller absorbs (+ $12 broker fee)
$43.20
DAP: buyer owes at the door (+ $15 disbursement fee)
$46.20

Under DDP, the buyer pays $135.00 total and nothing more. Under DAP, they pay $135.00 at checkout, then $46.20 more to get the parcel: $181.20 in total.

Choosing between them

  • DAP's biggest risk is abandoned parcels. A buyer who didn't expect a charge at the door often refuses delivery, which leaves you with return shipping and no sale.
  • DDP needs tax registration. To charge duty-paid prices honestly at checkout, you generally need to be registered to collect tax in the destination country, or use a scheme like the EU's IOSS or the UK's under-£135 rule.
  • Price it in either way. If you go DDP, build the expected duty and tax into your price or shipping charge. If you go DAP, say so clearly at checkout so the buyer isn't caught off guard.

Setting duties and tax collection on your store

  1. 01

    Shopify

    Go to Settings → Markets to set duties and import taxes to be collected at checkout for the countries you sell to, where Shopify supports it, which gives buyers a DDP-like price with no surprise at delivery.

  2. 02

    WooCommerce

    Core WooCommerce doesn't calculate foreign duty at checkout. Many stores instead build an estimated duty and tax charge into international shipping rates under WooCommerce → Settings → Shipping.

Questions people ask

What's the difference between DDP and DAP?

Under DDP, the seller pays duty and import tax, and the buyer's price is final at checkout. Under DAP, the buyer owes duty, tax and often a courier fee before the parcel is delivered.

Why do couriers charge a disbursement fee?

It covers the courier's cost of paying duty and tax to customs on your behalf and collecting it back from the buyer. Each carrier sets its own fee, so check yours rather than assuming a flat rate.

Is DDP always better for conversion?

Usually, because it removes surprise charges that cause refused or abandoned parcels. It costs the seller more in fees and paperwork, and you need to be able to register for tax in the destination country to do it properly.

Can I offer DDP without customs registration everywhere I sell?

For low-value EU orders (up to €150), the IOSS scheme lets you collect VAT at checkout without full customs registration in each country. For the UK, sellers charge VAT at checkout on orders up to £135. Above those limits, DDP usually needs a broker or registration.

Does DAP mean the buyer might refuse the parcel?

Yes, that's the main risk. A buyer who didn't expect to pay at the door sometimes refuses delivery, and the seller is often left covering return shipping with no sale to show for it.

Related tools

Incoterms PickerAnswer three questions to get an Incoterm recommendation, plus the full risk and cost split for all 11 Incoterms 2020 rules.Import Duty CalculatorStack duty, import tax and broker fees on top of your goods value to see the total cost to import.IOSS CalculatorCharge the right EU import VAT at checkout for parcels up to €150, by destination country, under the IOSS scheme.UK Import Duty & VAT CalculatorSee UK customs duty and import VAT due on a parcel, including the £135 rule and the £39 gift allowance.

Want this builtinto your store?

I'm Emmanuel, a Shopify and WooCommerce developer. If this tool pointed at something you'd rather have fixed for you (a faster store, cleaner product data, a migration, a custom feature), send me a note.

Emmanuel Asika

Emmanuel Asika

Shopify & WooCommerce developer, Dublin

I build and fix online stores: new builds, migrations, speed, SEO and the custom bits apps can't do.

hello@emmanuelasika.com
See my work

Last reviewed 30 September 2026.

Sources: ICC: Incoterms® 2020 rules