Many Chinese suppliers offer DDP (Delivered Duty Paid) to make things easier for buyers — but it often creates hidden problems.

Under DDP, the supplier must pay import VAT and duties in the EU, without being able to reclaim the tax.

This leads to higher sales prices and less transparency, since customs clearance is handled indirectly — something EU authorities do not appreciate.

The only benefit? Buyer convenience.

But compared to higher cost, risk, and unclear import processes, DDP is rarely the right choice.

For sustainable and transparent sourcing, DAP or FOB terms are almost always better options.

With DDP (Delivered Duty Paid), the seller (i.e., the Chinese supplier) bears all costs and risks until delivery to the agreed location in the importing country, including:

- Transportation costs

- Insurance

- Customs duties

- Import sales tax (VAT in the EU, e.g., 19% in Germany)

The problem with the tax:

A Chinese supplier is not registered for tax in the EU (unless they have an EU tax number, which is rarely the case).

So if they offer DDP, they must:

- pay import sales tax (EUSt),

- but cannot reclaim it because they are not entitled to deduct input tax.

➡️ Result: This tax becomes a real additional cost for them, which they have to factor into their price — so the final price is higher.

Why some Chinese suppliers offer it anyway?

Some do so in order to offer customers maximum convenience (“We deliver to your door, all inclusive”).

They often use third-party logistics providers in Europe or non-transparent import channels, where:

- the goods are imported via third parties (e.g., via Hong Kong or Poland),

- and the tax formalities are “somehow taken care of.”

This is not always legal or above board, and in the worst case, it can cause tax or customs problems for the recipient.

Better alternatives

Instead, we recommend:

- DAP (Delivered At Place): The supplier delivers to the destination, but the buyer pays customs and import tax → legally and fiscally clean.

- CIF or FOB: Classic options where you remain the importer of the goods and have full control over customs and taxes.