NON-EU
Selling DDP
in the EU
What does it mean to sell DDP as a non-EU company? Doing business in the EU without the need to open an
office in the EU. RMB offers solutions to these challenges!
Selling under DDP (Delivered Duty Paid) terms as a non-EU company presents a golden opportunity to enter the European Union market without the complexity and costs associated with establishing a physical presence. RMB understands the unique challenges such companies face, such as navigating customs regulations and managing cross-border logistics.
Our DDP solution removes these hurdles, allowing international sellers to operate within the EU as seamlessly as any local business. By simplifying the sales process and taking on regulatory and tax responsibilities, RMB enables your business to focus on what it does best: selling your products and expanding your brand within the European market.
What is DDP incoterm?
DDP incoterm means “Delivery Duty Paid”. This means that you will take care of the transport of your goods yourself. Moreover, you will take care of the customs formalities in France and become the "Importer of records" in France. This means (depending of the country of arrival of goods):
- you take care of the transport of your goods
- you take care of the customs formalities in EU
- you become the Importer of records in EU
This takes the customs administrative burdens and costs away from your customers, but your company will need to appoint a customs agent in the EU so that goods are cleared in your name. Make sure to have this conversation with your customers and have clear agreements on the responsibility of you as a supplier and your client as the receiver of the goods.
Contact us today to find out how we can help grow your business…
What are the possible scenarios?
The scenarios here below are based on the assumption that your company does not have a fixed establishment in the country of arrival of the goods. Your business is considered as a foreign company, established in another country if certain criteria are met. This could for example be the case if you have in your warehouses or offices in this country with employees working for your company in this country and / or decision makers present in the country of arrival. A detailed analysis must be carried out on this subject. We strongly recommend that you contact us if you have any doubts about this.
Votre entreprise vend en DDP uniquement à des entreprises françaises:
- Vous n'avez pas l'obligation de vous identifier à la TVA française,
- Vous devez obtenir un numéro EU EORI (car votre numéro GB EORI ne sera plus valable dans l'UE),
- Vous devez désigner un représentant ou un courtier en douane,
- Vous paierez les droits de douane et la TVA à l'importation en France,
- Une demande de remboursement de la TVA acquittée peut être formulée via la procédure de remboursement (13e directive)
- La demande de remboursement peut être introduite trimestriellement ,
- Vous facturerez vos clients français sans TVA (mécanisme d'autoliquidation domestique obligatoire),
Your company sells DDP to French companies :
- You have the obligation to register for French VAT,
- You need to obtain an EU EORI number (as your GB EORI number is no longer valid within the EU),
- You need to appoint an accredited customs agent or broker on both sides of the channel,
- You have to pay customs duties and VAT on import in France
- A refund request for the VAT paid (except import VAT) can be submitted through the refund procedure (13th directive).
- The refund procedure is available on a quarterly basis,
- You will invoice your French customers without VAT (mandatory domestic reverse charge mechanism),
Your company sells DDP to non-French companies only :
- You don't have the obligation to register for French VAT, as there is also a possibility to use the specific customs regime 4200,
- You need to obtain an EU EORI number (as your GB EORI number is no longer valid within the EU),
- You need to appoint an accredited customs agent or broker on both sides of the channel,
- You have to pay customs duties and VAT on import in France
You can also choose to register for VAT in France if you would like to benefit from the import VAT deferment so that you don’t have to make advance payments of VAT to the customs broker. (in this case please see next case).
If you import in France under DDP and sell to companies in other EU countries:
- You have the obligation to register for VAT in France
- This allows your company to deliver to other EU member states (Intracommunity sales)
- You need to obtain an EU EORI number (as your GB EORI number will no longer be valid within the EU),
- You need to appoint an accredited customs agent or broker.
- You will pay customs duties only.
- VAT on import will be reverse charged in your VAT return,
- No need to advance payment of the Import VAT.
Si vous importez en France en DDP et vendez à des entreprises dans d'autres pays de l'UE:
- Vous avez l' obligation de vous identifier à la TVA en France
- Cela permet à votre entreprise de vendre dans d'autres États membres de l'UE (livraisons intracommunautaires)
- Vous devez obtenir un numéro EU EORI (car votre numéro GB EORI ne sera plus valable dans l'UE),
- Vous devez désigner un représentant ou un courtier en douane.
- Vous ne paierez que les droits de douane,
- La TVA à l'importation sera déduite dans votre déclaration de TVA,
- Pas besoin de paiement anticipé de la TVA à l'importation.
HOW CAN WE HELP YOU TODAY
Do you have questions about how RMB can help your business? Send us an email and we’ll get
in touch with you shortly, our VAT experts are always happy to help. You can also contact us by
phone: +33 3 20 25 70 70.
Book your call with our experts
You can book a call with one of our experts to assess your fiscal situation
We offer a first check up for free, no obligations attached