Is anyone using Royal Mail's PDDP?

[xenmate]

Shopify seems woefully equipped to take advantage of this. Has anyone managed to make it work? 

For example how to collect taxes for Norway or Switzerland without VAT registrations there, or how do I collect taxes for EU countries on orders above 150 Euros? 

[DaisyVo]

Hi @xenmate 

I see where you’re coming from—Royal Mail’s PDDP (Prepaid Duties and Delivery Paid) service can be a great way to simplify cross-border shipping, but Shopify doesn’t have built-in support to automate tax collection for it. That makes it a bit tricky if you're trying to handle VAT and customs duties correctly, especially for Norway, Switzerland, and EU orders above €150.

How to Make It Work on Shopify

While Shopify doesn’t natively support PDDP, you can still set up a workaround using third-party apps and manual tax settings.

1. Collecting Taxes for Norway & Switzerland Without VAT Registration

For countries like Norway and Switzerland, you usually need an IOSS (Import One Stop Shop) or a local tax registration to collect VAT at checkout. If you’re not registered, your best bet is to:

• Use a shipping carrier that supports DDP (Delivered Duties Paid), like Royal Mail’s PDDP, and charge the duties at checkout.
• Use a third-party app like Zonos, Avalara, or TaxJar to estimate and collect duties/taxes at checkout.
• Manually adjust Shopify tax settings: Go to Settings → Taxes and Duties, then configure a custom tax override for those specific regions.

2. Collecting VAT for EU Orders Above €150

Since the EU introduced the IOSS system (which only applies to orders below €150), anything above that needs standard VAT and duty handling:

• You can’t use IOSS for orders over €150—instead, you need to collect VAT and customs duties separately.
• Set up a tax override in Shopify: You might need to configure custom tax rules and use an app to handle the correct tax rates.
• Consider a third-party duty collection tool: Apps like Zonos can help automate this and calculate the duties correctly.

Final Thoughts

Shopify doesn’t directly support PDDP, but you can still work around it by using third-party apps or adjusting tax settings manually. If you’re regularly shipping to these regions, partnering with a tax automation tool might be the most efficient way to handle VAT and duties correctly.

If you need any other assistance, feel free to ask, and I will try my best to support you.
Best regards,
Daisy.

[skippyinspace]

12 months on is this still the case since the changes made late last year with the introduction of Shoppify Tax.

We were going to go down the e-global or Swap Commerce route but our shopify developer came back with you might be better of going down the Couier / Royal Mail DDP road as Swap and e-global put some sort of overlay in which effects work that the developer has done.