Delivered Duty Paid (named place of destination)
In Incoterms DDP the seller delivers the goods, without unloading, at buyer´s premises or a nearby place in the country of destination. The transport risk is transferred from buyer to seller in the same place where the goods are delivered.
DDP is somewhat the reverse of Incoterms EXW; it represents the greatest obligation for the seller because he assumes all costs and risks of the operation, including import procedures, to deliver the goods at the agreed place in buyer's country. The only cost do not assume by the seller is the unloading of goods at delivery place.
Any import tax and specifically VAT, are paid by the seller, unless the parties agree in the contract of sale that VAT or other taxes are paid by the buyer. In that case a variant of DDP, known as "DDP VAT unpaid", should be used.
The only difference between Incoterms DDP and DAP is that in DDP all costs and taxes of import clearance are paid by the seller while in DAP are paid by the buyer. In the event that the seller has no capacity by himself or through his representatives for doing import clearance, Incoterm DDP should not be used.
If between the country of origin and the country of destination there is no customs (e.g. European Union) and the goods are delivered at buyer´s premises, Incoterm DAP must be used instead of DDP, because will not be necessary to clear goods for import.