What is DDP?
DDP (Delivered Duty Paid) means the sender or seller pays import duties and fees upfront, so the recipient receives the parcel without any extra charges. DDP gives buyers an all-inclusive experience and sharply reduces refused deliveries.
What is IOSS? (for EU routes)
IOSS (Import One-Stop Shop) is the EU scheme that lets VAT be collected and declared at the point of sale for low-value orders (≤ EUR 150). When an EU-bound parcel carries an IOSS number, the buyer pays no extra VAT at the border, and the parcel clears customs faster.
Why it matters
If you sell to the EU without handling VAT through IOSS, the destination postal service may charge the buyer VAT plus a handling fee, which leads to frustration and returns. VIO ePacket requires a valid IOSS number for EU shipments and supports IOSS declarations on the Europe route. If your IOSS number expires, VIO may use a third-party IOSS to pay the VAT and will charge the full VAT plus a 2% service fee on the VAT.
EU customs fee: €5 per HS code (from 1 November 2026)
On top of VAT, from 1 November 2026 every parcel sent to the 27 EU countries is charged an extra €5 for each HS code in the parcel (€3 Customs Duty + €2 Handling Fee). This fee is separate from VAT and is not included in VIO ePacket rates; it does not apply to the UK, Switzerland, Norway or Israel. See our HS code guide for how HS codes are counted.
De minimis: the duty-free threshold
De minimis is the value threshold below which imported goods are exempt from duty or go through simplified customs procedures. Each country sets its own threshold, and it can change with government policy. Knowing it helps you decide how to declare value and which tax model to use for each route. For example, the US suspended its USD 800 de minimis exemption on 29 August 2025, so low-value orders to the US now pay import duty.
Quick comparison
| Term | Who pays the tax | Benefit for sellers |
|---|---|---|
| DDP | Sender/seller pays upfront | Buyer pays nothing on delivery; fewer refused parcels |
| DDU/DAP | Recipient pays on delivery | Cheaper shipping but a higher risk of refusal |
| IOSS (EU) | VAT collected at the point of sale | Faster clearance; EU buyers pay nothing extra |
What should sellers do?
- Identify your destination and its de minimis threshold.
- For EU orders: use IOSS (VIO ePacket requires a valid IOSS number for EU shipments) and budget for the €5 fee per HS code.
- Consider DDP for an all-inclusive experience on higher-value goods.
- Build the right taxes and fees into your selling price so you do not lose money.
Frequently asked questions
- Is IOSS mandatory when selling to the EU?
- IOSS is optional under EU law, but EU shipments with VIO ePacket need a valid IOSS number. With IOSS, buyers are not charged VAT at the border and parcels clear customs faster. IOSS covers orders up to EUR 150; VIO only accepts EU parcels valued under EUR 150.
- What is the difference between DDP and DDU?
- DDP: the sender pays duties upfront, so the buyer pays nothing on delivery. DDU/DAP: the recipient pays duties on delivery; shipping is cheaper but the risk of a refused delivery is higher.
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