DDP delivery

In the modern world, the vast majority of online shops sell on DDP terms, i.e. where the seller handles all the costs associated with shipping the goods that their customers buy. For customers, both B2C and B2B, it is experienced as easy and as if you are shopping locally. It provides a good customer experience, as the seller takes care of all the administrative hassle.

With increasing internationalization and easy access to foreign webshops, the number of foreign customers who want to shop at foreign online retailers/webshops and Online Marketplaces is increasing. At the same time, it also becomes easier for companies to market themselves on foreign markets, as it is easy for them to deliver to their local markets, such as Germany, England, Norway and Sweden from their local warehouse. However, this presents the foreign online retailers with new challenges. After Brexit, there have been more challenges in servicing international customers from the local webshop. The UK, Norway and Switzerland are not members of the EU, which means that shipments sent from warehouses in the EU must be cleared through Customs when they reach the border of the country they are to be delivered to (UK, Norway and Switzerland).

This also means that there is an additional cost associated with buying goods in the UK, Norway and Switzerland, as the customer in those countries is charged customs duty and import VAT for the goods bought abroad. Alternatively, as a seller, you can choose to bear the cost yourself, which is customs duty and import VAT. However, this is an expensive and difficult alternative that is not worthwhile for the vast majority of companies, because it is too high a cost in relation to what the earning potential is.

But what do you do if you want to service customers in the UK, Norway and Switzerland on the same terms as customers in other European countries? Here, as a seller, you can choose to register for VAT in the country you wish to sell to. That way, the company can sell on DDP terms without having to worry about paying VAT, which would just be an extra cost for them. By having a VAT registration, you can, sell on local terms, and thereby sell on DDP terms to the British, Norwegian and Swiss markets.

TIMEVAT have helped over 500 customers to carry out this DDP set-up in the UK, Norway and Switzerland, where for the vast majority it has meant that they have been able to expand their market, and thereby also their earnings in the country in question. If this could be of interest to you, TIMEVAT can help you with everything related to having to sell on DDP terms to these countries.

If you are interested in hearing more, you are very welcome to contact us by phone +45 7021 3000 or our emailaddress which is info@timevat.com

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Contact us at +45 7021 3000