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VAT on Etsy fees: what a UK, Irish or GST-country seller really nets
Etsy's fees are quoted without VAT. This calculator adds VAT or GST on the fees at the standard national rate, or removes it when a valid VAT ID on file means Etsy does not charge it, and shows what you net.
Rates checked on . Rates in effect since October 25, 2026.
Rates used for United Kingdom
| listing fee | 0.15 GBP |
|---|---|
| transaction pct | 6.5% |
| processing pct | 4% |
| processing fixed | 0.20 GBP |
| offsite pct low | 15% |
| offsite pct high | 12% |
| offsite cap | 75.00 GBP |
| regulatory pct | 0.48% |
| currency conversion pct | 2.5% |
| vat on fees pct | 20% |
Sources: Etsy Fees & Payments Policy, Etsy Payments Policy (processing fees), Regulatory Operating Fee (help), Currency Conversion Fees (help), How VAT Is Collected on Seller Fees (help) .
How these numbers are modelled
- Domestic or international: for Canada, Australia and New Zealand Etsy publishes a higher processing rate (4%) for international orders. The default is the domestic rate; tick "International order" to switch. Other countries have one rate.
- The $0.20 USD listing fee and the $100 USD Offsite Ads cap are set by Etsy in US dollars. Outside the US they are shown in your currency at an assumed exchange rate, so those two amounts are approximate.
- VAT, GST and sales tax on fees use standard national rates. Etsy does not publish these rates, so treat them as estimates. Check your own situation and your Etsy invoice. The US and Canada have no flat rate, so nothing is added there.
- Not included: the 2.5% currency conversion fee (only when your listing currency differs from your payment account currency), Etsy Ads, shipping labels, deposit fees, Etsy Plus and the shop set-up fee.
How it is calculated
VAT on fees = (listing + transaction + processing + Offsite Ads + regulatory fees) x VAT %, unless the reverse charge applies (valid VAT number), in which case VAT charged is 0.
All math runs in your browser; nothing you type is sent to our server. Each line is rounded to the cent and amounts are shown in the currency of the selected country, never mixed.
VAT on seller fees in plain terms
Etsy's fee schedule states that its fees are exclusive of VAT. Where the law requires it, Etsy adds VAT or an equivalent tax such as GST on top of the fee it charges you. For a seller who is not VAT-registered, that tax is a real extra cost on every order: it is added to listing, transaction and payment processing fees, to Offsite Ads, and to the regulatory operating fee, which Etsy says is subject to VAT where applicable.
How the tax is handled depends on where you are. For a group of countries that includes the UK, the EU excluding Ireland, Australia, New Zealand, Singapore, India and the Philippines, Etsy says that if you add your VAT ID to your account you will not be charged VAT on fees and will receive an invoice stating that. Without a VAT ID, the VAT is charged to your payment account balance. For Ireland and South Africa, Etsy says it must charge VAT on applicable fees whatever you submit. Canada has its own rules for GST/HST, PST, RST and QST, and the United States applies sales tax to certain fees where applicable.
What the calculator does
It runs the same fee stack as the Etsy fee calculator and then adds VAT at the standard national rate on the sum of the listing, transaction, processing, Offsite Ads and regulatory fees. If you tick the VAT ID box, VAT is set to zero, because Etsy does not charge it in that case. The line "VAT on fees" is shown separately so you can see how much it costs.
Worked example: UK seller, £30 item with £5 shipping
The order total is £35.00. The processing fee is 4% of £35.00 plus £0.20, which is £1.60, and the transaction fee is 6.5% of £35.00, £2.28. The regulatory operating fee is 0.48%, £0.17. The listing fee is $0.20 USD, shown in pounds at an approximate rate as £0.15. Fees before VAT are £4.20. VAT at the standard UK rate of 20% on that is £0.84, so total fees are £5.04 and you keep £29.96. With a valid VAT ID on file the VAT line disappears and you keep £30.80. On a £20 sale the same logic leaves a visibly thinner result once postage is taken out, which is why UK sellers ask whether they really make a few pounds on a small order.
Rates, honestly flagged
The VAT and GST rates in the calculator are standard national rates, not figures Etsy publishes. They are marked as unverified in the rate table under the calculator. Your own situation may differ: some sellers pay a reduced treatment, some fees may be zero-rated, and rates change. Use the figure on your Etsy invoice as the truth and adjust expectations accordingly.
What this calculator does not cover
It does not decide whether you need to register for VAT, how to account for the reverse charge on your return, or how VAT applies to the sale itself, shipping into other countries, customs duties or IOSS. It does not add the 2.5% currency conversion fee. For the bookkeeping side read the guide to VAT on Etsy fees. To turn the result into profit, use the profit calculator.
Sources
The description of when VAT is charged comes from Etsy's help article How VAT Is Collected on Seller Fees, the Fees & Payments Policy and the regulatory operating fee article, checked on the date shown under the result. KeepCent is independent and not affiliated with Etsy, Inc.
Frequently asked questions
Does Etsy charge VAT on its fees?
Etsy says its fees are exclusive of VAT and that it charges VAT on seller fees where required. For sellers in the UK, the EU (excluding Ireland), Australia, New Zealand, Singapore, India and the Philippines, Etsy states that if you add your VAT ID to your Etsy account you will not be charged and will get an invoice instead. Without one, VAT is charged to your payment account balance.
Which countries are charged regardless of a VAT ID?
Etsy lists Ireland and South Africa (along with a few others outside this calculator) as countries where it must charge VAT on applicable fees whether or not you submit a VAT ID. In this calculator choose Ireland or South Africa and leave the VAT ID box unticked.
What VAT rate does the calculator use?
The standard national rate: 20% for the United Kingdom, 23% for Ireland, 18% for Malta, 10% for Australia, 15% for New Zealand and South Africa, 9% for Singapore, 18% for India and 12% for the Philippines. Etsy does not publish these rates, so they are flagged as unverified on this site. Check your own situation, because some fee types and some sellers are treated differently.
Can I reclaim the VAT on Etsy fees?
Only if you are VAT-registered and the VAT is recoverable under your country's rules. An unregistered seller usually cannot reclaim it, which makes it a real cost. Ask an accountant or your tax authority, because the rules differ by country.
What about the US and Canada?
Etsy says sales tax is applied to certain fees where applicable in the US, and in Canada it charges GST/HST, PST, RST or QST depending on your tax status. These vary by state or province and by fee type, so there is no flat rate and the calculator adds nothing for them.
Is this tax advice?
No. It is an estimate based on standard rates and Etsy's published description of when VAT is charged. Your Etsy invoice and statement show what was actually charged, and a qualified adviser should confirm the treatment for your business.
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KeepCent is an independent tool and is not affiliated with, endorsed by or sponsored by Etsy, Inc., eBay Inc., Depop, Whatnot, Poshmark or Mercari. Etsy, eBay, Depop, Whatnot, Poshmark and Mercari are trademarks of their respective owners, used here only to describe what the tools calculate. Estimates only, not tax or accounting advice.