# VAT on Etsy Fees: UK, EU, Australia, New Zealand

> Etsy quotes its fees without VAT and adds VAT or GST where required. In the UK, the EU excluding Ireland, Australia, New Zealand and several other countries, a VAT ID on your account means you are not charged and receive an invoice; without one, VAT is charged to your balance. Ireland and South Africa are charged regardless.

Source: https://keepcent.com/guides/etsy-vat-on-etsy-fees
Updated: 2026-10-25

Etsy's fees are quoted without VAT. Where the law requires it, Etsy adds VAT, GST or another consumption tax to the fee it charges you. For an unregistered seller that tax is a real cost on every order, and the rules differ by country. This guide summarises what Etsy says in its help article [How VAT Is Collected on Seller Fees](https://help.etsy.com/hc/en-us/articles/360040584433-How-VAT-Is-Collected-on-Seller-Fees), what that means in practice, and where the numbers you can verify end. It is general information, not tax advice.

## What Etsy says, by group of countries

**A VAT ID on your account means no VAT is charged.** For sellers in Australia, the EU (excluding Ireland), India, New Zealand, the Philippines, Singapore, the UK and several other countries, Etsy says that if you added your VAT ID to your Etsy account you will not be charged. You receive an invoice stating that you were not charged VAT on your seller fees. Without a VAT ID, VAT is charged to your current balance.

**Some countries are charged regardless.** For Ireland, South Africa and a few other countries, Etsy says it is required to charge VAT on applicable fees whether or not you have submitted a VAT ID.

**Canada works differently.** Etsy charges GST/HST, PST, RST or QST depending on your tax status and province. A second Etsy article says that where Etsy has already collected GST/HST on the order, you are not charged GST/HST on order-related fees (payment processing and transaction), while GST/HST is always charged on other seller fees such as listing fees, Etsy Ads and Offsite Ads. British Columbia charges PST on all seller fees, and Manitoba and Saskatchewan do not charge PST on them.

**The United States** applies sales tax to certain fees where applicable, which varies by state.

## Which fees carry the tax

Etsy's Fees & Payments Policy states that fees are exclusive of VAT. The regulatory operating fee is subject to VAT where applicable, and the Etsy Payments Policy says VAT is collected on processing fees for sellers in eligible countries where required. In practice that means listing, transaction, processing, Offsite Ads and regulatory fees can all carry it.

## A worked example: UK seller

A UK seller sells a £30 item with £5 shipping, so the order total is £35.00. Etsy's UK processing fee is 4% plus £0.20, which is £1.60. The transaction fee is 6.5% of £35.00, £2.28, and the regulatory operating fee is 0.48%, £0.17. The listing fee is $0.20 USD, about £0.15 at an assumed exchange rate. The fees before VAT are £4.20. Without a VAT ID, the standard UK rate of 20% adds £0.84, so fees are £5.04 and she keeps £29.96. With a VAT ID on file the VAT line disappears and she keeps £30.80. On a £20 order the same VAT costs about 51 pence, and the extra matters because the margins are thin. Try your own order in the [VAT on fees calculator](/etsy-vat-on-fees-calculator).

## What about reverse charge?

Etsy's help article does not use the phrase reverse charge. What it describes is operational: add a valid VAT ID and you are not charged, and you get an invoice that says so. For a VAT-registered business, tax authorities in many countries expect you to account for VAT yourself on services bought from abroad (usually called a reverse charge), usually recovering it in the same return. Whether that applies to you, and how to record it, depends on your country and registration. Ask your accountant or tax authority, and keep Etsy's invoices.

## Where it shows up

Charges and credits relating to VAT can both appear on your [monthly statement](/guides/how-to-read-your-etsy-monthly-statement-csv), often as separate rows, and the invoice is available in your payment account. Net the charges and credits for a true cost, and keep VAT apart from fees in your records, because a VAT-registered seller can usually recover VAT that an unregistered seller cannot.

## The rates in the calculator

Etsy publishes no VAT percentage. The calculator uses the standard national rates: 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. They are flagged as unverified on the page, because they come from national standard rates and not from Etsy. Your situation may differ because of registration status, reduced rates or rate changes.

## Next steps

Run the numbers with and without a VAT ID, then compare them with your invoice. If you are unsure how VAT interacts with the rest of your fees, see [Etsy fees by country](/guides/etsy-fees-by-country-2026), and for the effect on profit, the [Etsy profit calculator](/etsy-profit-calculator). Etsy's pages were read on 25 October 2026. KeepCent is independent and not affiliated with Etsy, Inc.

**Does Etsy charge VAT on seller fees?** Etsy says its fees are exclusive of VAT and that it charges VAT on fees where required. Whether you pay depends on your country and on whether you have given Etsy a VAT ID.

**What happens if I add my VAT ID?** For the UK, the EU excluding Ireland, Australia, New Zealand, Singapore, India, the Philippines and other listed countries, Etsy says you will not be charged VAT on fees and will receive an invoice saying so. Without a VAT ID the VAT is charged to your current balance.

**Which sellers are charged whatever they submit?** Etsy lists Ireland and South Africa, with a few other countries, as places where it must charge VAT on applicable fees regardless of whether you submit a VAT ID.

**Is a reverse charge the same as not being charged?** In practice the result is similar for a VAT-registered business, but the accounting is yours. Etsy's own help article does not use the words reverse charge, so ask your accountant how to treat the invoice on your return.

**What VAT rate should I use in the calculator?** The standard national rate for your country, which the calculator preloads and flags as unverified because Etsy publishes no rate. Replace it with the figure on your Etsy invoice if it differs.