Etsy Fees in the UK (2026)
By Selling Fee Tools team ·
Etsy charges UK shops the same kinds of fees as US ones, plus a regulatory operating fee and VAT. This guide covers each one for shops with a UK bank account listing in pounds, from Etsy’s UK Help Center, checked in October 2026.
The fees
- Transaction fee: 6.5% of the item price, postage and gift wrap.
- Payment processing: 4% + 20p per order, on the item price, postage and any sales tax.
- Regulatory operating fee: 0.48% of the item price, postage and gift wrap.
- Listing fee: US$0.20, converted to pounds when charged.
- Offsite Ads: 15% of an order that came from an Etsy ad on another site, or 12% for shops with US$10,000 or more in sales in a year, never more than US$100 per order.
- VAT: 20% on every Etsy fee for UK shops that haven’t added a VAT ID. Once you add one, Etsy stops charging it.
Examples
Listing fee left out:
| Order | No VAT ID | VAT ID added |
|---|---|---|
| £25 item + £3.50 postage | £1.85 + £1.34 + 14p + 67p VAT = £4.00 | £3.33, and £4.75 VAT owed on the sale |
| £8 item, free postage | 52p + 52p + 4p + 22p VAT = £1.30 | £1.08 |
| £40 item + £10 postage | £3.25 + £2.20 + 24p + £1.14 VAT = £6.83 | £5.69 |
| £150 item, free postage | £9.75 + £6.20 + 72p + £3.33 VAT = £20.00 | £16.67 |
That is about 14% of a £28.50 order for a shop without a VAT ID.
VAT-registered or not?
- Without a VAT ID: you pay 20% VAT on Etsy’s fees and keep the whole sale price.
- With a VAT ID: you pay no VAT on Etsy’s fees, but you owe VAT on your UK sales: one sixth of a VAT-inclusive price. On a £28.50 order, £4.75.
You must register for VAT once your taxable turnover passes £90,000 in 12 months. See VAT for UK online sellers.
Etsy or eBay in the UK?
On the £28.50 order, a business seller on eBay.co.uk pays £5.02 including VAT, more than Etsy’s £4.00. Private sellers on eBay pay no final value fee at all. See eBay and Etsy fees in the UK.
Work out your own numbers
- Etsy UK fee calculator, with VAT on fees and Offsite Ads
- UK VAT calculator
- eBay UK fee calculator
Source: Etsy UK Help Center fee and tax articles, listed on the calculator and on our methodology page.