DDP Shipping to France: Who Really Pays the VAT?
Introduction
If you’ve ever sent something to France with DDP (Delivered Duty Paid) terms, you’ve probably asked yourself a question that seems easy but is actually very complicated: who pays the VAT? It turns out that the answer is far more involved than the Incoterm name suggests. If you get it wrong, your organization could face unexpected tax bills, customs delays, and expensive compliance failures.
On paper, DDP is one of the most seller-friendly Incoterms. The seller is responsible for all costs and hazards until the items reach the buyer’s specified destination. This includes export clearance, international freight, import customs clearance, and all relevant tariffs and taxes. That means that, in theory, the seller pays the VAT. But France has its own standards for e-commerce, import VAT, and changing criteria for fiscal representation, which makes things much more complicated.
This article gets to the point. Here are the answers to your questions about how French import VAT works, who is legally responsible under DDP, what changed with recent EU and French rules, and how to stay compliant in 2025 and beyond. This is true whether you are a Chinese manufacturer, a cross-border e-commerce seller, or a logistics professional managing freight from China to France.
What Does DDP Actually Mean?
According to Incoterms 2020, which were issued by the International Chamber of Commerce, DDP, or Delivered Duty Paid, is the deal in which the seller has the most responsibility. The vendor brings the products to the specified locati0n in the importing country. They are already past customs and all import fees and taxes have been paid. The buyer’s only job is to offload.
This makes DDP very appealing to purchasers, especially consumers and small businesses who want a price that includes everything and no extra fees at the door. In business-to-business (B2B) transaction across borders, where the buyer needs to know how much it will cost, it is also very common.
But the Incoterms 2020 standards have a big problem: DDP says that the seller must be able to legally function as the Importer of Record (IOR) in the country where the goods are going. For vendors who are not from the EU, this is not always easy in France and the rest of the EU. The business that is importing usually needs to be a registered business in the EU, and in many situations, it needs to have a French VAT number and an EORI (Economic Operators Registration and Identification) number. Not meeting these conditions doesn’t mean you don’t have to pay VAT; it just makes it hard to know who owes it and how to pay it.
How French Import VAT Works
Most items that are brought into France have a normal VAT rate of 20%. There are lower rates for some culinary services and hospitality (10%), food products and books (5.5%), and some pharmaceutical items (2.1%). But for most manufactured consumer and commercial goods, the usual rate is 20%.
France stopped giving low-value packages a VAT break on July 1, 2021. Before that, packages for €22 or less were not charged VAT. This means that every commercial shipment that comes into France now has to pay import VAT, no matter how much it costs. However, customs duty only applies to shipments with a declared FOB value of more than €150. This is France’s duty de minimis threshold, which is the same as the EU-wide standard.
The CIF (Cost, Insurance, and Freight) value of the products is used to figure out the VAT base. If there is an import duty, it is added to that base before VAT is calculated. This is what the practical formula looks like:
| Calculation Step | Formula / Notes |
| Customs Value (CIF) | Cost of goods + shipping + insurance to EU border |
| Import Duty | CIF × applicable TARIC duty rate (avg. ~4.2% for EU; only if CIF > €150) |
| VAT Base | CIF + Import Duty |
| Import VAT | VAT Base × 20% (standard rate) |
| Example: Goods €1,000, freight €120, duty 5% | CIF = €1,120; Duty = €56; VAT = (€1,176) × 20% = €235.20 |
It is also vital to know about a change in 2022 that had a big effect on how firms in France deal with import VAT. Businesses have not been able to pay VAT at customs since January 2022. Private individuals can still do this. Instead, enterprises that are registered in France must use the necessary VAT reverse charge (autoliquidation de la TVA à l’importation). This means that the monthly CA3 VAT return shows import VAT as both output VAT and input VAT. For enterprises that are fully taxable, this is basically a paper exercise. But this means that sellers outside the EU who use DDP have to register for French VAT at the time of importation in order to use this method.
Who Really Pays the VAT Under DDP?
This is when things become interesting. The seller is legally responsible for paying all import taxes, including VAT, under DDP rules. But how that VAT is really paid and who the French customs authorities see as the payer depends completely on whether the seller is correctly registered as the Importer of Record (IOR).
If the seller is not in the EU and hires a carrier or freight forwarder (like DHL, FedEx, or UPS) to handle customs clearance for them, the carrier will usually pay the import duties and VAT to French customs and then bill the seller for the money back, usually with a handling fee. In this case, the seller does pay the VAT, but not through the reverse charge; instead, they get a cash advance. If the seller meets certain requirements, they can then ask the French Tax Authorities (Direction Générale des Finances Publiques) for a VAT refund.
But if the seller wants to work more efficiently, especially on a large scale, it needs to sign up for French VAT and employ the reverse charge system. This means that the business doesn’t have to pay VAT in cash at customs and has full control over its VAT situation in France.
One further situation that needs to be pointed up is DDP shipments where the foreign company is NOT named as the importer on the customs declaration. This may happen, for example, if the buyer’s name was used to clear customs. In this instance, the seller can’t legally get back the import VAT that was included in the purchase. This is a regular blunder in cross-border e-commerce that costs a lot of money.
| Scenario | Who Pays VAT to Customs? | Can Seller Reclaim VAT? | Risk Level |
| Seller registered as IOR + French VAT number (reverse charge) | Seller (via VAT return) | Yes — offset on CA3 | Low |
| Carrier advances VAT, invoices seller | Carrier (advanced), Seller (reimbursed) | Yes — via VAT refund claim | Medium |
| Buyer listed as importer, seller absorbs cost | Buyer at customs; seller bears economic cost | No | High |
| IOSS used (B2C, value ≤ €150) | Seller collects at point of sale | N/A — no customs VAT charged | Low |
Key Regulatory Changes: What Has Changed in 2025–2026
In the last two years, the rules for DDP exports to France have changed a lot. Three important changes that sellers and logistics managers need to know about are.
The End of Limited Fiscal Representation Under Regime 42
Regime 42 (customs procedure code 4200) was a popular way to bring products into France without paying import VAT. However, the goods had to be delivered to another EU member and specific conditions had to be followed. Most importantly, it didn’t require VAT registration in France, which made it a popular way for UK and other non-EU suppliers to send goods to the EU through France on DDP terms.
The French Finance Act for 2025 said that the choice to utilize “one-off” or limited fiscal representation under Regime 42 ended on December 31, 2025. Starting in January 2026, all non-EU enterprises who import goods into France under Regime 42 must have a French VAT number (which usually takes four to eight weeks), a French EORI number linked to that VAT registration, and send monthly VAT returns to the French tax authorities. This is a big change in how things work that will disrupt a lot of China-to-EU supply networks that go through French ports or logistical centers.
The New €2 Levy on Low-Value Parcels
Starting on March 1, 2026, France added a €2 customs handling fee for each unique HS code on any packages coming into the country from outside the EU that were worth less than €150. This tax is in addition to the VAT that IOSS collects. For merchants sending packages with more than one product, this can mount up quickly. For example, a package with items with two separate HS codes costs €4. This change is part of France’s larger effort to make taxes on e-commerce from outside the EU more fair compared to taxes on French shops.
Mandatory VAT Reverse Charge and Pre-filing
All firms in France that are registered for VAT must use the import VAT reverse charge since 2022. The French customs office (DGDDI) fills out part of the VAT declaration for taxable imports ahead of time. However, businesses are still responsible for entering the deductible VAT and checking the pre-filled data. If you don’t follow the rules, including not declaring non-taxable imports or making mistakes in the taxable base, you could have to pay up to 40% to 80% of the VAT owing, plus interest per month.
IOSS: The Smart Path for B2C E-Commerce Under €150
The Import One Stop Shop (IOSS) plan, which started on July 1, 2021, is still the best way for cross-border e-commerce sellers who want to sell to French customers and ship items worth €150 or less. With IOSS, the seller gets a single EU VAT number (which may be gotten from any EU member state) and collects French VAT at the point of sale when the customer checks out. When the package gets to French customs, the recipient doesn’t have to pay any import VAT. Instead, the customs declaration just lists the seller’s IOSS number as proof that VAT has already been paid.
IOSS makes it easier to collect VAT after delivery, stops parcels from becoming stuck at customs, and gives the buyer a clear pricing. If you’re a seller from outside the EU, like China, you have to register for IOSS through an EU-based middleman who is also responsible for making sure you pay VAT. The intermediary concept is well-known and easy to find through big logistics and compliance companies.
For IOSS reasons, the VAT rate that applies is based on the buyer’s EU member state, not the country where the goods are cleared. A package sent from China that goes through customs in the Netherlands but is delivered to a buyer in France is liable to French VAT at 20%, not Dutch VAT at 21%.
DDP vs. DAP: Choosing the Right Incoterm for France
Because French VAT compliance is so hard under DDP, a lot of merchants wonder if DAP (Delivered at Place) is a better choice. Under DAP, the buyer is in charge of paying VAT, duties, and customs clearance for imports. This means that the French party is the only one that has to follow the rules, which is frequently the case because they are already VAT-registered and know how to do French taxes.
The trade-off is more about business than logistics. DAP makes the buying process worse, especially in B2C situations when consumers don’t know how to fill out import declarations. It can cause deliveries to be left behind, complaints from customers, and extra fees for carriers who pay duties and taxes in advance (for example, DHL charges a cash advance cost of 1.8% of customs and taxes, with a minimum of €20 including VAT, on DAP shipments into France — a rate that does not apply to DDP). When the buyer is a French firm with its own VAT registration and experience with customs, DAP is generally the better choice for B2B transactions.
| Factor | DDP | DAP |
| Who pays customs duties? | Seller | Buyer |
| Who pays import VAT? | Seller (legally) | Buyer |
| Buyer experience (B2C) | Seamless — fully landed price | Poor — surprise charges on delivery |
| Seller registration required? | French VAT/EORI often required | Not required |
| Risk of non-compliance | High for non-EU sellers | Lower for seller |
| DHL cash advance fee (France) | Not applicable | 1.8% of duties/taxes (min €20 incl. VAT) |
| Best for B2C? | Yes | No |
| Best for B2B? | Possible | Often preferred |
Practical Steps for Non-EU Sellers Shipping DDP to France
If you are a seller from outside the EU, whether you live in China, the US, or anywhere else, and you want to ship to France on DDP terms, here is what you need to do.
First, find out if you need to register for French VAT. There is no minimum amount for enterprises outside the EU. If you do taxable import or supply transactions in France, you must register. enterprises that are not based in the EU must register as soon as they make their first taxable transaction, unlike enterprises that are based in the EU, which have a threshold of €85,000 for goods. Businesses who aren’t in the EU must additionally choose a fiscal representative, which is a French resident company that is jointly and severally responsible for your VAT duties. This person will file your monthly CA3 VAT returns.
Second, get an EORI number from France. This is different from the VAT number, yet they are connected. It is needed for all customs declarations for imports and exports. EORI will be required for any non-EU entity acting as the importer under Regime 42 starting in 2026.
Third, choose a customs broker or freight forwarder who knows how to deal with French customs, including the required DELTA IE customs declaration system and, for RoRo cargo since September 2025, the Obligatory Logistics Envelope (ELO) system. Incorrect HS code categorization, undervalued products, or missing EORI are all examples of mistakes in customs paperwork that can cause big delays and fines.
Fourth, if you’re shipping B2C items worth less than €150, think about registering for IOSS. It takes the VAT on imports out of the customs process completely and makes the delivery experience for customers much better. The €2 per HS code tax will start in March 2026, so make sure your landing cost calculations include this new fee as well.
How Topway Shipping Supports DDP Logistics to France
When transporting DDP to France, you need a logistics partner who knows both the business and legal sides of cross-border freight. This is because of the mandatory reverse charge VAT, fiscal representation requirements, changing e-commerce taxes, and changes to the customs system.
Since 2010, Topway Shipping, which is based in Shenzhen, China, has been offering excellent cross-border e-commerce logistics services. Topway’s founding team has more than 15 years of experience in international logistics and customs clearance. This has given the company a lot of knowledge about the entire logistics chain, from first-leg transportation and overseas warehousing to customs clearance and last-mile delivery in destination markets.
Topway’s main strength is in shipping goods from China to the US, but the company can also ship to big markets all over the world, such as France and Europe as a whole. Topway’s ocean freight services from China to key ports around the world are flexible and provide both full-container-load (FCL) and less-than-container-load (LCL) options. This makes it a good choice for sellers who need to handle both large B2B shipments and e-commerce fulfillment flows.
When sellers ship to France under DDP terms, a logistics partner like Topway is helpful not just for transporting goods quickly, but also for working with customs brokers, fiscal representatives, and local delivery networks to make sure that all compliance needs are followed at every stage. With the changes to Regime 42 in 2026 and the new low-value parcel levy, dealing with a logistics operator from China that is extremely familiar with these changes can mean the difference between smooth delivery and costly delays.
Topway Shipping has the infrastructure, knowledge, and flexibility to help you with your logistics goals, whether you are an established e-commerce seller expanding into the French market or a manufacturer looking into direct-to-consumer channels in Europe.
Conclusion
Under DDP terms, the seller is contractually obligated to pay the VAT — but in France, how that obligation is fulfilled, who is recognized as the payer by tax authorities, and whether that VAT can be recovered depends on a web of registration requirements, customs procedures, and recent legislative reforms that have fundamentally reshaped the landscape.
The bottom line for non-EU sellers is this: shipping to France under DDP without proper French VAT registration and EORI is increasingly risky. The elimination of limited fiscal representation under Regime 42, mandatory VAT reverse charge for businesses, and the introduction of the €2 low-value parcel levy all point in the same direction — France is tightening compliance and closing the gaps that non-EU sellers previously exploited. Sellers who invest in the right registration, representative, and logistics infrastructure will find the French market accessible and profitable. Those who do not may find themselves facing VAT assessments, customs holds, and reputational damage with French customers.
Getting DDP right in France is not just a tax question — it is a supply chain strategy question. Start with clear Incoterm selection, build in the right compliance infrastructure, and partner with logistics experts who know the French market inside out.
FAQs
Q: Is the seller always required to pay import VAT under DDP shipping to France?
A: According to DDP Incoterms, the seller is legally accountable for all import charges, including VAT. But the legal details rely on who is listed as the Importer of Record. If a seller is not in the EU and does not have French VAT registration, their carrier may pay the VAT up front and then bill them for it.
Q: What is the current French VAT rate on imported goods?
A: The usual French VAT rate is 20% of the CIF value of products plus any import charge that may apply. Certain types of products, such food, books, and some drugs, have lower percentages of 10%, 5.5%, and 2.1%.
Q: Do I need to register for French VAT as a non-EU seller shipping DDP?
A: Yes. Non-EU enterprises in France don’t have to register. Any business that is not already established in France and does taxable imports or supplies must register for VAT and hire a French fiscal representative who is also responsible for making sure the business follows the rules.
Q: What is IOSS and when should I use it for France shipments?
A: Answer: IOSS (Import One Stop Shop) lets vendors collect EU VAT at the time of sale for shipments worth €150 or less. If the shipment has an IOSS number on it, the French border does not collect import VAT. Under the €150 limit, this is the best way to do B2C e-commerce.
Q: What changed for DDP shipping to France in 2026?
A: Two big developments happened: Starting in January 2026, limited fiscal representation under Regime 42 was no longer allowed. This meant that all non-EU imports had to have a complete French VAT and EORI number. France also started charging €2 per unique HS code on low-value packages (under €150) from outside the EU from March 1, 2026. This is independent from IOSS VAT duties.
Q: Can the seller reclaim the import VAT paid in France?
A: Yes, in most circumstances. If the seller is VAT-registered and registered as the Importer of Record in France, they can use the reverse charge method on their CA3 return to get back the VAT they paid on imports. Non-registered vendors can ask the French Tax Authorities for a refund, but they have to meet certain requirements and make a claim of at least €200 for enterprises outside the EU.
