How Tax Laws Affect Etsy Sellers Around the World

With buyers and sellers all over the world, Etsy must comply with a variety of tax laws. Here's an overview of laws that may affect your shop with links to find more information. 

Tax charged on seller fees

Many countries require Etsy to charge sales taxes on fees for the services we provide. Learn more.

Tax on your sales

If you sell goods on Etsy (physical or digital) you may be required to pay tax on any profit you make. We always recommend consulting with a local tax professional or your local tax authority website. If you’re based in the UK, HMRC has this guide on reporting additional income.

Some countries require Etsy to withhold/collect amounts from sellers and remit it to tax authorities. This money is withheld from the shops’ sales and goes toward tax that the seller will owe to their government.

Learn more about how Etsy collects and remits withholding taxes for sellers in:

Tax charged directly to buyers

Many countries require Etsy to charge buyers taxes based on where the order is delivered to. That way, Etsy is responsible for remitting the tax in individual countries, instead of millions of sellers.

This includes:

  • US for all orders that are delivered to the US
  • Canada
  • Low Value Goods (LVG) imported into the EU, UK, Australia, Norway, New Zealand

Learn more about customs fees and tax collection for international packages.

Many countries require Etsy to charge buyers sales tax for purchases of digital file listings. Learn more.

Information reported to government authorities

Many countries require Etsy to report details of sellers’ transactions to tax authorities.

Learn more about the information Etsy reports in:

  • Austria
  • Canada
  • France
  • India
  • Italy
  • Mexico
  • US
  • EU:
    • As of 1st January 2023, Etsy collects certain information in respect of EU sellers and will report this information to the EU government in accordance with tax law. Etsy will share the relevant information to be reported with each seller when reporting. The first reporting period will be in January 2024 in respect of the 2023 year. Find out more about DAC 7.
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