Incoterms for Switzerland Shipments: DDP vs. DAP
By Rafael Paulo Krüger · Customs Expert & CEO
DDP or DAP for Switzerland? What the two Incoterms govern, who bears import duties and VAT, and which delivery term makes sense when.
A machine builder in Baden-Württemberg sold a unit to Bern and simply wrote “delivered free of charge” on the quote. The Swiss customer read this as: no further costs. The seller meant: to the loading dock, clearance not included. When the shipment sat at the border and import charges fell due, the dispute was inevitable. Misunderstandings like this are exactly what the Incoterms exist to prevent — provided you pick the right one and know what it governs. For Switzerland shipments, that is almost always DDP or DAP.
What Incoterms Actually Govern
The Incoterms (currently Incoterms 2020, published by the International Chamber of Commerce, ICC) are standardised delivery terms. They allocate three things clearly between seller and buyer:
- Obligations — who arranges transport, export and import clearance?
- Costs — who bears freight, insurance, duty and taxes?
- Risk — at which point does the risk of loss or damage pass to the buyer?
Just as important is what the Incoterms do not govern: they say nothing about the transfer of title in the goods, and they are not tax law. Whether Swiss import VAT can be recovered as input tax follows from Swiss VAT law — the Incoterm only determines who handles the import and initially bears the charges. Keeping this distinction in mind is the key to choosing correctly.
DDP: The Seller Bears Everything
DDP (Delivered Duty Paid) is the most convenient term for the buyer. The seller/consignor delivers the goods to the named destination at the consignee and bears all costs and obligations in doing so — including import clearance in Switzerland, the Swiss import customs duty and the Swiss import VAT (standard rate since 2024: 8.1%).
For the Swiss consignee, DDP means the goods simply arrive without their having to deal with clearance or charges. The catch sits with the seller: a foreign company that regularly ships DDP into Switzerland may become liable for Swiss VAT and need a fiscal representative or VAT registration in Switzerland. DDP is therefore the most far-reaching obligation — great for sales, but administratively demanding.
DAP: The Consignee Handles the Import
DAP (Delivered At Place) looks different: the seller delivers the goods to the named place and bears the transport up to that point — but import clearance rests with the buyer/consignee. The Swiss consignee therefore bears the import duty and the Swiss import VAT and arranges the import declaration in Switzerland.
DAP is thus the mirror image: the seller stays on the EU side (transport plus export declaration), and responsibility crosses the Swiss border. For many B2B deals this is the more natural split, because the consignee is already set up in the local system.
Effect on Swiss Import VAT and Practice
The practically most important difference concerns Swiss import VAT. Whoever handles the import initially owes the 8.1% — but what really matters is who can ultimately recover it as input tax:
- Under DAP, the Swiss consignee is the importer. If they are VAT-registered in Switzerland, they can usually deduct the import VAT as input tax — turning it into a pass-through item.
- Under DDP, the foreign consignor is the importer. They can recover the Swiss import VAT only if they are themselves registered in Switzerland. Otherwise it remains a real cost.
On top of this comes the import duty: for EU-origin goods with a valid proof of origin, it is often eliminated thanks to the free-trade agreement — regardless of the chosen Incoterm. How duty, import VAT and clearance fees fit together is broken down in detail in our article What does customs clearance to Switzerland cost?.
Recommendation: When DDP, When DAP
There is no single “best” term — the choice makes sense along these lines:
- DAP is usually the clean choice in B2B trade with a Swiss consignee who is already VAT-registered. They deduct the import VAT as input tax, and the seller avoids a Swiss registration.
- DDP pays off when you want to offer the customer an all-inclusive experience — for example in B2C shipping or with consignees who cannot handle their own clearance. In that case, budget for the non-recoverable import VAT and a possible registration obligation.
Rule of thumb: the more professional the consignee, the more DAP fits. The more you want to control the clearance experience, the more DDP makes sense.
Conclusion
DDP and DAP allocate obligations, costs and risk at the Swiss border differently — they do not govern the transfer of title or tax recoverability. Under DDP the consignor bears everything through import, including the 8.1% import VAT; under DAP the import rests with the consignee, who can usually recover the input VAT. The right choice depends on your business model, the consignee’s VAT status and your willingness to register in Switzerland.
If you are unsure which delivery term fits your shipment, we support you from the export declaration through to the proof of origin. For an overview of the process and obligations, see our page on exporting to Switzerland.