Manufacturing Intelligence Updated 2026-05-09 4 min read By the Octo team

Why your Alibaba supplier is asking for your VAT and EORI on a UK DDP order

The Octo UK-DDP IOR Screen

A Chinese supplier asking for your VAT and EORI before quoting DDP into the UK is not being difficult. They are naming the customs entry requirement: UK customs clearance under DDP needs an importer of record with a GB EORI and a UK VAT or PVA setup, and for most cross-border flows, a Chinese supplier without UK presence may be operationally unable to serve as that party themselves.

The question is whether your setup is confirmed — not whether the price feels right.

What is actually happening

DDP (Delivered Duty Paid) means the seller is responsible for UK customs clearance and import duty at destination. The UK customs entry needs a GB EORI number on the declaration, naming the importer of record. Without a confirmed IOR, the entry may stall, require correction, or leave the goods sitting at port while demurrage starts.

When the supplier asks for your VAT and EORI, they are asking: who is the UK importer of record on this entry? If you don't have the answer, the DDP setup is not in place. Confirm with a UK customs broker before agreeing to DDP terms.

What to check before agreeing to DDP

Three questions from the Octo UK-DDP IOR Screen (adapted from the Octo EU-Importer-of-Record Test). If any answer is no or unclear, the DDP setup is not verified.

QuestionWhat "yes" looks likeWhat "no or unclear" means
1. UK-established legal entity? UK company or sole trader registered with Companies House, or UK tax-registered No UK presence — DDP IOR needs a third-party solution
2. GB EORI registered? Active GB EORI starting with "GB" No EORI — customs entry cannot be filed in the buyer's name. Registration is free and online via HMRC.
3. VAT registration or PVA in place? UK VAT registration active, or eligible for Postponed VAT Accounting Below VAT threshold (£90,000 as of April 2024) with no PVA — import VAT is owed at the border with no reclaim path

Three yes answers: DDP into the UK is operationally plausible. Any no: don't book before fixing the gap. Confirm the setup with a UK customs broker who can verify the IOR structure before the deposit moves.

What to confirm with the supplier

Once your IOR setup is confirmed, check three things on the supplier's side before agreeing to DDP:

  1. Name their UK customs broker. A supplier who cannot name a UK broker with a UK address has not actually arranged the DDP path. The goods may arrive at port with no one to clear them.
  2. Get a line-item DDP quote. A round-number "X USD DDP" buries destination charges. The breakdown should name: origin charges, UK freight, UK terminal handling, import duty (calculated on the commodity HTS code via UK Trade Tariff), import VAT (or PVA reference), and last-mile delivery.
  3. Ask about demurrage terms. Free days at the UK port (typically Felixstowe, Southampton, or London Gateway) and the daily rate after free days expire. Goods sitting at a UK port accrue demurrage fast — and it is the buyer's cost under DDP if the IOR setup is unclear.

Red flags

  1. Buyer has no GB EORI registered. The customs entry cannot be filed in the buyer's name.
  2. Supplier cannot name a UK customs broker. The DDP path is not actually arranged.
  3. DDP quote is a round number with no line items. Destination-side charges will surface after arrival.
  4. "We will sort customs at port" with no IOR named. The default IOR may become the freight forwarder's house IOR — a setup the buyer did not agree to and cannot audit.
  5. Supplier pushes for 50% or more deposit before confirming DDP logistics. The logistics setup should be confirmed before the deposit moves, not after.

The supplier is not being difficult. They are telling you what DDP requires. The setup check takes one day — less than the demurrage bill if the customs entry stalls at port.

The setup check takes one day. Less than the demurrage bill if the entry stalls. SAM treats DDP into the UK the same way it treats DDP into the EU — as a logistics setup that needs verifying before the deposit moves. Confirm the GB EORI, the VAT or PVA setup, and the supplier's UK customs broker. Then require a line-item DDP quote. See how SAM applies the Octo UK-DDP IOR Screen →

Common Questions

What buyers ask before
agreeing to DDP from China into the UK.

Why is my Alibaba supplier asking for my VAT and EORI number?

They need to confirm who will appear as the importer of record on the UK customs entry. Per HMRC's customs guidance, the IOR needs to be a UK-accountable party. For most cross-border DDP flows, a Chinese supplier without UK presence may be operationally unable to serve as that party — they have no UK address or tax registration HMRC can use. The pushback is the supplier asking you to confirm the IOR is set up before the entry is filed. Confirm the structure with a UK customs broker before agreeing to DDP terms.

Do I need a GB EORI to import goods from China?

Yes, for any commercial import. Per HMRC's EORI guidance, every business moving goods into or out of the UK needs a GB EORI. Registration is free and online. For VAT-registered businesses, the EORI is typically issued with the VAT registration; for non-VAT-registered traders, a separate EORI application is needed.

Should I switch from DDP to FOB if the supplier pushes back?

Not automatically. The supplier's pushback is a signal that the IOR setup isn't confirmed — not that DDP can't work. If your GB EORI and VAT or PVA setup are in order and the supplier can name a UK customs broker, DDP can proceed. FOB gives you more customs control but requires you to book freight and customs clearance yourself. Either way, confirm the IOR structure before agreeing to either term.

Setup confirmed before deposit

Need a sourcing partner that confirms
the UK-DDP setup before the deposit moves?

Octo SAM verifies the GB EORI, the VAT or PVA setup, and the supplier's UK customs broker before agreeing to book DDP from China into the UK.

Meet SAM →