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How to check what VAT rates to apply to Esty Fees

Where to find the VAT rates on Etsy Fees

Daniel Little avatar
Written by Daniel Little
Updated this week

This article will show you where to look on Etsy to find out what tax rate is being applied to your Etsy fees. This is not tax advice and you should always check with your accountant or tax advisor before making any decisions about what tax rates to apply.

Contents:

My business is located in the UK

Since Etsy invoices its fees from Ireland, if your business is located in the UK if you have given them your GB VAT number then they will not be charging VAT on their fees.

To check if you are paying VAT on your Etsy fees, firstly you'll need to log in to Etsy and navigate to Shop Manager > Finances > Payment account. Once there, click on the month to get an invoice for that period. The download link will appear above the breakdown of your activity for the month:

A screenshot of a "VAT reporting" section within a software interface. The left sidebar shows navigation options including "Finances," "Marketing," "Integrations," "Community & Help," and "Settings." Under "SALES CHANNELS," "Etsy" is listed.  The main content area displays:  VAT reporting (title)  VAT statement (subtitle)  October 2021 (period)  On the right side of "October 2021," there's a button labeled "Download," to which a prominent red arrow is pointing.

Once you download the statement it will look like this:

A digital invoice from Etsy, issued on "31 October, 2021" for the "Invoice Period: 1 October, 2021 - 31 October, 2021". The recipient's details are blacked out for privacy.  The invoice provides a "Summary of Services" table with columns for "Qty," "Summary of Services," "Unit Price (USD)," and "Total (GBP)."  The services listed are:  Listing Fees: 49 items, US$0.20 per unit, total £7.35  Listing Fees: 1 item, no unit price, total £0.02  Transaction Fees: 1 item, no unit price, total £136.34  Renew Expired Fees: 66 items, US$0.20 per unit, total £9.90  Renew Expired Fees: 1 item, no unit price, total £0.11  Renew Sold Fees: 305 items, US$0.20 per unit, total £45.75  Renew Sold Fees: 1 item, no unit price, total £0.13  Etsy Ads Fees: 1 item, no unit price, total £120.43  Processing Fees: 1 item, no unit price, total £164.28  Offsite Ads Fees: 1 item, no unit price, total £55.92  Regulatory Operating Fees: 1 item, no unit price, total £6.95  Below the table, a summary shows:  Subtotal: £547.18 (also EUR* €647.68)  0% VAT: £0.00 (highlighted with a red rectangular outline)  Total: £547.18 (also EUR* €647.68)  At the bottom left, "Etsy Ireland UC" and its address "66/67 Great Strand Street, Dublin 1, Ireland, VAT ID 370 6004 28" are listed.  At the bottom right, there's a note: "*The amounts shown in EUR are a conversion of the GBP billed amounts as of Oct 29, 2021. Actual amounts collected will depend on the exchange rates at the time of payment." Below this, another red rectangular outline highlights the text: "Subject to reverse charge: VAT to be accounted for by the recipient as per Art 196 of Council Directive 2006/112/EC."

On the bottom of the invoice is the tax rate Etsy has applied to your fees.

My business is located outside the UK

For businesses established outside the UK other tax rates can apply to Etsy Fees.

For the latest information direct from Etsy see this help article.

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