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Etsy fees in the UK are higher than the headline 6.5% suggests. A UK shop pays the same listing and transaction fees as everyone else, but also a higher payment processing rate, a regulatory operating fee and, unless you are VAT-registered, 20% VAT on top of every fee. Together they usually take 12% to 15% of an order.
This guide lists every Etsy fee for UK sellers in pounds, shows two worked examples, and explains how VAT and HMRC reporting affect you.
Every Etsy fee for UK shops
| Fee | Rate for UK shops | Charged on |
|---|---|---|
| Listing fee | $0.20 (about £0.15) | Each listing, renewed every 4 months or after a sale |
| Transaction fee | 6.5% | Item price + shipping + gift wrap |
| Payment processing | 4% + £0.20 | Total order amount |
| Regulatory operating fee | 0.48% | Item price + shipping |
| Offsite Ads (only on ad sales) | 15% or 12% | Order total, capped at $100 an order |
| VAT on fees | 20% | All the fees above, unless Etsy has your VAT number |
The listing fee is set in US dollars, so the amount in pounds moves a little with the exchange rate. The regulatory operating fee rose to 0.48% in June 2026; Etsy says it covers the cost of complying with UK regulations.
Here are the live rates we use, with the date they were last checked:
| Bank country | Listing | Transaction | Payment processing | Regulatory | Tax on fees* |
|---|---|---|---|---|---|
| United Kingdom | US$0.20 | 6.5% | 4% + £0.20 | 0.48% | 20% VAT |
Offsite Ads: 15% of the order (12% for shops with US$10,000+ sales a year), capped at US$100 per order. *Charged when you have not added a VAT/GST number to Etsy. Listing currency conversion: 2.5%.
Last verified: . Official sources: Etsy Fees & Payments Policy · Etsy Payments Policy (processing fees by country) · Etsy Help: Regulatory Operating Fee · Etsy Help: VAT on seller fees
Worked example: a £25 print with £3.50 postage
A buyer orders a £25 art print and pays £3.50 postage, so the order total is £28.50.
- Listing fee: £0.15
- Transaction fee: 6.5% × £28.50 = £1.85
- Payment processing: 4% × £28.50 + £0.20 = £1.34
- Regulatory operating fee: 0.48% × £28.50 = £0.14
That is £3.48 in fees, or 12.2% of the order. If you are not VAT-registered, Etsy adds 20% VAT to those fees: another £0.70, making £4.18 (14.6%).
If the print costs you £8 to make and £3 to post, your profit is about £13.32 without a VAT number on Etsy, or £14.02 with one. Try your own prices:
Etsy Fee Calculator
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Enter your item price to see Etsy's fees.
VAT on Etsy fees
Etsy is required to charge UK VAT on the fees it bills to UK sellers. What happens next depends on whether you are registered:
- Not VAT-registered: you pay the 20% and cannot claim it back. It is simply an extra cost, so include it in your pricing.
- VAT-registered: add your VAT number in your Etsy account settings. Etsy then stops charging VAT on fees (you account for it under the reverse charge on your VAT return). That is a 20% saving on every fee.
Separately, if your taxable turnover goes over £90,000 in any rolling 12 months, you must register for VAT and charge VAT on your own sales. Our guide to VAT for online sellers in the UK explains the rules, and the VAT calculator splits any price into net and VAT.
Offsite Ads for UK shops
When a buyer clicks an Etsy advert on Google, social media or another site and buys within 30 days, the sale pays an Offsite Ads fee:
- 15% if your shop made less than $10,000 in the last 12 months. You can opt out in your shop settings.
- 12% if your shop made $10,000 or more. Taking part is required.
The fee is capped at $100 per order (converted to pounds). On our £28.50 order, a 15% Offsite Ads fee would add £4.28, plus VAT if you have no VAT number. That can wipe out most of the profit on a cheap item, so price with it in mind.
Selling abroad from the UK
UK shops pay the same 4% + £0.20 processing on orders from other countries. If you list in a currency other than pounds, Etsy charges a 2.5% currency conversion fee when it converts the sale to your payment account currency. Listing in GBP avoids it.
For orders to the EU, Etsy collects EU import VAT from buyers on orders up to €150 under the IOSS scheme, so your buyer should not face a surprise VAT bill on delivery.
HMRC, Etsy and the trading allowance
Since 2024, Etsy and other platforms share information with HMRC about sellers who make 30 or more sales or earn about £1,700 or more in a calendar year. This does not create a new tax, but it means HMRC can see your Etsy income.
Many small makers can use the £1,000 trading allowance: if your total trading income (before expenses) is £1,000 or less in a tax year, you usually do not need to report it. Above that, you register for Self Assessment and pay tax on your profit. Keep a record of every Etsy fee, because fees are an allowable expense.
How UK sellers can pay less in Etsy fees
- Add your VAT number if you are VAT-registered. It removes 20% from every fee.
- Encourage multi-item orders. One order pays one £0.20 processing fee, not several.
- List in pounds to avoid the 2.5% conversion fee.
- Opt out of Offsite Ads if you are under $10,000 in sales and the 15% fee would make sales unprofitable.
- Remove listings that never sell before they auto-renew for another $0.20.
- Price from your costs, not from competitors. Our handmade pricing guide shows how.
The bottom line
Expect Etsy to take around 12–15% of each UK order once processing, the regulatory fee and VAT are included, and more on Offsite Ads sales. Run every new price through the Etsy fee calculator with the United Kingdom selected so you know exactly what you keep. For the fees in every country, see Etsy fees explained.
The fees in this guide were checked against Etsy's Fees & Payments Policy in October 2026. Tax information is general; check GOV.UK or an accountant for your circumstances.
Frequently asked questions
How much does Etsy take from a sale in the UK?
On a typical order, about 12% if Etsy has your VAT number and about 14.5% if it doesn't: 6.5% transaction fee, 4% + £0.20 processing, the 0.48% regulatory operating fee and the listing fee, plus 20% VAT on all of them for sellers who are not VAT-registered.
Does Etsy charge VAT on fees in the UK?
Yes. Etsy adds 20% VAT to its seller fees for UK sellers. If you are VAT-registered and add your VAT number to your Etsy account, Etsy stops charging it.
What is Etsy's regulatory operating fee in the UK?
It is 0.48% of the item price plus shipping on every UK shop order in 2026. It rose from 0.32% in June 2026.
Do I have to pay tax on Etsy sales in the UK?
If your total trading income is more than £1,000 in a tax year, you usually need to register for Self Assessment and pay tax on your profit. Below that, the trading allowance normally covers it. Check GOV.UK or an accountant for your situation.