Can you reclaim VAT on DDP shipments from China?
Normally only if you owned the goods at import and hold the import VAT evidence in your own name, a C79 or a postponed VAT statement, though HMRC has discretion to accept other evidence. Under DDP the entry is often in the seller's or forwarder's name, so agree whose EORI is used before the goods ship. Cambridge China Bridge can quote one UK landed price covering freight, duty and clearance.
Why DDP looks so attractive
Delivered Duty Paid means the seller quotes one number and handles everything: freight, UK customs, duty and import VAT, delivered to your door. For a first-time importer that is enormously appealing — no forwarder to appoint, no customs entry to worry about, one invoice.
Chinese suppliers and the freight lines that serve them push DDP hard for exactly that reason. The quote is simple, it is often a little cheaper than arranging your own freight, and nothing about it looks like a tax problem.
The problem: you are probably not the importer
Under DDP the seller is responsible for clearing the goods, so the customs declaration is usually made in the name of the seller or, more often, the freight forwarder's own UK entity. Whoever is named on that declaration, with their EORI, is the importer of record.
That matters for two separate reasons. First, import VAT deduction follows ownership and normal VAT rules, not simply the name on the declaration; a forwarder clearing goods it does not own cannot normally deduct that VAT. Second, DDP does not decide when title passes. Your sale contract must state who owns the goods at import.
No C79, and the reclaim becomes an argument
The evidence HMRC expects for reclaiming import VAT is the C79 certificate, or a postponed VAT accounting statement if you use PVA. Both are generated from the customs declaration and issued only to the party named as importer, against their EORI.
So if you were never named, no C79 or PVA statement appears in your account and you have no routine evidence for your VAT return. HMRC will consider alternative evidence that you owned the goods and that import VAT was paid, but that is discretionary and treated as exceptional — it is not something to plan around. In practice the 20% was paid by somebody else, and getting it back turns into an argument rather than a routine deduction.
What it actually costs
Take a £10,000 order with £1,000 of freight. The customs value is around £11,000; at a 4% duty rate that is £440 of duty, and import VAT at 20% of £11,440 is £2,288.
If you are VAT-registered, own the goods at import and hold valid import VAT evidence, the £2,288 may be deductible subject to normal rules. Under a DDP arrangement where a forwarder is named, you may have no C79 to support that deduction. If instead a UK supplier imports and resells the goods, assess the VAT shown on its domestic sales invoice separately. A cheaper headline freight quote is not enough to compare the two structures.
The fix is a sentence in the purchase order
You do not have to give up the convenience. If you are buying as a direct importer, agree ownership at import and ask the supplier or forwarder to arrange the shipment while the declaration is made for you under your EORI. Confirm your VAT evidence before the goods move; being named alone does not make import VAT deductible.
For a direct import, DAP may make the responsibilities clearer: the supplier can still arrange delivery while you arrange import clearance. Confirm ownership, the customs declaration and the VAT evidence together. Alternatively, a UK supplier may import in its own name and sell to you domestically with a UK VAT invoice.
Working out your own order? Send us the product on WhatsApp and we reply the same working day: WhatsApp us
Questions worth asking before you accept a DDP quote
Whose EORI will appear on the customs declaration? Will I receive a C79 or a postponed VAT accounting statement in my own VAT number? What commodity code will be declared, and at what value?
The last question matters too: because the forwarder is bearing the duty under DDP, they have an incentive to declare a low value or a convenient code. If that declaration is wrong, it is still an entry made about your goods.
How we handle it
For a landed-price enquiry, we agree in writing who sells and owns the goods at import, whose EORI is used, which party pays duty and import VAT, and which invoice or import VAT statement the buyer will receive. A buyer's name on a customs entry alone does not establish a right to deduct import VAT.
If you are not VAT-registered the calculation is different — the import VAT is a real cost either way — and we will say so rather than selling you a structure that does not help. The underlying concept, and how to check it on any shipment, is in who is the importer of record.
For who carries the legal responsibility for duty and product safety, see Who is liable when an imported product hurts someone.
Frequently asked questions
Can I reclaim import VAT on a DDP shipment?
The right follows ownership of the goods, but the evidence follows the declaration. Under DDP the entry is usually made in the seller's or the forwarder's name, so no C79 or postponed VAT statement is issued to you. HMRC can accept alternative evidence that you owned the goods and that import VAT was paid, but it is discretionary and exceptional — so treat import VAT on a DDP shipment as money you may not get back.
What is a C79?
The certificate HMRC issues as evidence of import VAT paid. It is generated from the customs declaration and issued only to the party named as importer, against their EORI. If you were not named, you never receive one.
Is DAP better than DDP?
DAP can make a direct import easier to document because the buyer arranges import clearance while the supplier can arrange delivery. VAT deduction still depends on ownership, eligible business use and valid evidence. Compare that with a UK resale invoice rather than treating DAP as an automatic VAT saving.
Can I keep DDP convenience and still reclaim the VAT?
Do not decide from the DDP label or EORI alone. Confirm who owns the goods at import, who is named on the entry and receives the import VAT evidence, or whether you are buying from a UK reseller with a domestic VAT invoice. Agree the structure before the goods move.
Does this matter if I am not VAT-registered?
The import VAT is a genuine cost to you either way, so the reclaim argument does not apply. What still matters is that the declaration about your goods is accurate — value and commodity code included.