Under EU, UK, and Canadian law, online marketplaces like Etsy are required to:
- Provide details of EU sellers and their transactions to EU tax authorities annually. This reporting requirement is commonly referred to as DAC 7.
- Provide details of UK sellers and their transactions to HMRC (His Majesty’s Revenue and Customs). This reporting is referred to as the Model Rules for Reporting by Platform Operators (UK MRDP).
- Provide details of Canadian sellers and their transactions to Canadian Revenue Agency (CRA). This reporting is referred to as the Canada Reporting Rules for Digital Platform Operators.
Jump to a section:
When is Etsy required to send EU, UK, and Canadian seller information to relevant tax authorities?
Etsy is required to send EU, UK, and Canadian seller information to relevant tax authorities when:
- You complete 30 or more transactions in a calendar year with physical goods
Or
- You make €2,000 (EU) (circa GBP £1,700) / CAD $2,800 (Canada) or more on physical goods sales after taxes and fees in a calendar year
Or
- You make any sales of made-to-order digital items (custom files made to a buyer’s specification that will be sent to them upon completion) in a calendar year
Sellers who don’t meet the above thresholds within the tax year are exempt from reporting.
What seller data is Etsy required to report?
The information that Etsy is required to share with tax authorities depends on whether you’re registered as an individual or a business entity.
Etsy is legally required to collect and verify the information below to report to tax authorities in order to comply with regulations. Please review and update your tax information to make sure it’s accurate for reporting.
If Etsy reaches out to you to request your information, but you don’t provide it within the specified timeframe on the email, Etsy will put your shop on pause via Vacation Mode. This means you won’t be able to receive new orders, and your listings won’t appear in search results on Etsy until you confirm your information.
I’m registered as an individual
Etsy is required to report:
| EU sellers | UK sellers | Canadian sellers |
|
|
|
I’m registered as a business entity
Etsy is required to report:
| EU sellers | UK sellers | Canadian sellers |
|
|
|
Financial data collected
Etsy is also obligated to share information on seller’s transactions with tax authorities. You’re provided with a PDF summary that shows the information Etsy reported to the tax authorities by January 31 of each year. The information includes:
- Total number of transactions completed during the period.
- Total amount paid or credited to the seller during each quarter of the period. The total amount paid is your total gross sales minus any refunds, fees, and Etsy-remitted taxes.*
- Total amount of fees, commissions, or taxes withheld or charged by Etsy during each quarter of the period.
* Consideration will include sales of physical items as well as the sale of made-to-order digital downloads. This does not include instant download digital files that the buyer can access immediately upon purchase.
What if my reported information is incorrect?
If you meet the threshold for reporting, you will receive notifications via email and Shop Manager prompting you to review, update, or supply any missing taxpayer details. Ensure the accuracy and currency of your information on the Legal and tax information page for reporting reasons.
Learn more about how to update your legal name and taxpayer information. If any reported information is inaccurate, contact Etsy Support.