US Taxes - Delivered Duty Paid (DDP) - Shopify

With effect from 29/08/2025, the United States ended its de minimis exemption, meaning duties and import taxes apply to all shipments, regardless of value. If you are selling through Shopify, you can choose whether to collect duties and import taxes at checkout or not.

• Prepaid Duties (Delivered Duty Paid - DDP): The customer pays the estimated duties and taxes at checkout, expediting the process.
• DDU/DAP (Delivered Duty Unpaid / Delivered at Place): The customer is responsible for paying duties and taxes upon delivery.

If you have set Shopify to Delivered Duty Paid (DDP), the duties/import taxes will appear on the Shopify checkout and can be imported into Tradebox and displayed within your accounts software. This will assist you to identify the import taxes and pay them to the relevant suppliers/authorities.

Tradebox Configuration

In Tradebox, go to the Channel List and double click on your Shopify Channel. Then click on the VAT tab. Scroll down to the setting called Duty Incoterms and choose one of the following options from the drop down list:

• Duty Paid on Order in Advance of Delivery: This is the equivalent of DDP. The customer pays the estimated duties and taxes at checkout, expediting the process. This allows the duties income to appear on the order in Tradebox and be posted to your accounts software.

• Duty Paid by Buyer at Delivery Destination. This is the equivalent of DDU/DAP. The customer is responsible for paying duties and taxes upon delivery. The duties income will not appear on the order in Tradebox or be posted to your accounts software.

   

If you select Duty paid on order in advance of delivery, the duty amount will appear as a non-vatable S2 Item Line on the invoice/sales order in the accounts software. The nominal code this amount is reported to, can be set within the accounting settings of each Tradebox sales channel under the NOMINALS tab. You will also need to create a non-stock product record called DUTIES in your accounts software to map the Shopify DUTIES SKU to. This should be created with a zero rated tax code.

Within the Reports section, you will find a new Report called Duties. This allows you to  create a list of all duties paid, by order, for each unique Shopify channel. A date range can be applied upon this report and the details can be exported to Excel.