Etsy sends Etsy Coupons to certain buyers that can be applied towards their next eligible Etsy order. These coupons are entirely funded by Etsy, so they are different from the coupons offered by sellers for specific shops.
What happens when a buyer uses an Etsy coupon?
Etsy may send Etsy Coupons to certain buyers that offer a percentage or fixed-amount discount off eligible orders. These coupons may include special conditions for use, such as a minimum spend requirement. The coupon also includes expiration details on how long the buyer has to use the coupon before it expires.
Does an Etsy Coupon change how much I make on a sale or the seller fees I pay?
These coupons are entirely funded by Etsy. This means that when a buyer uses an Etsy coupon on an order, you still receive the full order amount. After a sale, you can see the full amount on the receipt and reflected in your Payment account.
When a buyer makes a purchase from your shop using an Etsy Coupon, you pay the same seller fees you would have paid on an order without an Etsy Coupon.
What happens if I issue a refund?
On Etsy.com, when you issue a refund for an order for which a coupon was used, you see a notification of the amount to be refunded to Etsy on the refund confirmation page.
The amount refunded to Etsy won’t be visible when you issue a refund using the Sell on Etsy app.
How do Etsy Coupons work with taxes?
Taxes collected and remitted by Etsy
When Etsy is required to pay taxes, Etsy will remit the tax due to the tax authority. Depending on where the buyer is based, Etsy may be required to pay tax on the amount payable by the buyer or on the amount payable before the Etsy coupon is applied. For example, if an item originally costs 100 GBP, and the price is 90 GBP after the Etsy discount is applied, taxes will be collected and remitted to eligible governments on either the 100 GBP or the 90 GBP depending on the rules in your country.
Sellers can see when an Etsy Coupon was used on an order and how much was funded by Etsy in the order details in Shop Manager.
Taxes collected and remitted by sellers
Where you as the seller are required to collect the tax and remit the tax to your local tax authority, the tax treatment depends on your own personal circumstances and the tax rules in your location. To enable you to remit the right amount of taxes, sellers who collect and remit their own taxes can view how much is being funded by Etsy via Etsy Coupons in the order details in their Shop Manager. We recommend that you consult with your tax advisor regarding the amount on which you are required to pay taxes.
Taxes paid by buyers
For orders where buyers are required to pay taxes, for example where goods are being imported into a particular jurisdiction, local rules will determine whether taxes are charged on the order amount minus the Etsy-funded amount or the order amount before the discount is applied.