Etsy Fee Calculator UK
If you sell from the UK, Etsy takes a 6.5% transaction fee, 4% + £0.20 for payment processing, a 0.48% regulatory operating fee and USD 0.20 per listing. Then it adds 20% VAT to all of those fees unless you've added a VAT ID to your Etsy account. On a £20 sale, that VAT turns £2.55 of fees into about £3.06.
Revenue
COGS
Advertising
Payment
Where each £ of revenue goes
- Net profit£7.9439.7%
- Fees & ads£3.0515.28%
- COGS & shipping£9.0045.02%
See full breakdown▾
Revenue
Fees
COGS & shipping
Summary
What Etsy really takes from a £20 sale
| Fee | No VAT ID on Etsy | VAT ID added |
|---|---|---|
| Listing fee | £0.15 | £0.15 |
| Transaction fee (6.5%) | £1.30 | £1.30 |
| Payment processing (4% + £0.20) | £1.00 | £1.00 |
| Regulatory operating fee (0.48%) | £0.10 | £0.10 |
| VAT on fees (20%) | £0.51 | £0.00 |
| Etsy's total | £3.06 | £2.55 |
| Share of the sale | 15.3% | 12.7% |
Same £20 order in both columns, with no shipping charged and no ads. The VAT line is the only difference.
If you're VAT registered, the VAT ID column looks better than it is. £3.33 of that £20 is VAT you owe HMRC, and Etsy takes its transaction and processing fees on that VAT too, about 35p. So the £2.55 is really 15.3% of the £16.67 you keep, the same share an unregistered seller pays.
Should you add a VAT ID to Etsy?
If you're VAT registered, yes. Add your VAT ID to your Etsy account and Etsy stops charging VAT on its fees, so you're not paying it up front and claiming it back on your return.
If you aren't registered, there's no ID to add, and that 20% is simply part of what Etsy costs you: with no VAT return, there's nothing to claim it against. It comes off your margin, not your buyer's wallet, so it belongs in your price. You have to register once your taxable turnover passes £90,000 in 12 months, and you can choose to register sooner.
Etsy fees for UK sellers in 2026
| Fee | Rate | Charged on |
|---|---|---|
| Listing fee | USD 0.20 (about £0.15) | Each listing you publish or renew. Listings expire after four months. |
| Transaction fee | 6.5% | Item price (including VAT), shipping and gift wrap |
| Payment processing | 4% + £0.20 | The order total, including shipping and tax |
| Regulatory operating fee | 0.48% | Item price, shipping, gift wrap and personalization |
| VAT on Etsy fees | 20% | All Etsy fees, unless Etsy has your VAT ID |
| Offsite Ads | 15%, or 12% once your shop reaches USD 10,000 in sales over 365 days | Orders that follow a click on an offsite ad, capped at USD 100 (about £75) per order |
Rates from Etsy's Fees & Payments Policy, Etsy Payments Policy and Etsy Help Center, read on October 20, 2026. US dollar amounts converted at the European Central Bank's reference rate that day.
We left Etsy's 2.5% currency conversion fee out of the calculator. You pay it when you list in a currency other than your payment account's, for example a UK shop listing in US dollars. Etsy's one-time set-up fee for new shops, where it applies, and income tax aren't in the calculator either. If you sell every day, checking one sale at a time takes too long: Listadum's Profit Tracking, on the Growth and Max plans, imports your Etsy orders and their fees.
Etsy fee calculators for other countries
Frequently asked questions
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