Custom Duties and Import VAT

When a package is delivered internationally, it may be subject to import taxes, customs duties, and/or fees imposed by the destination country. These charges are typically due once the package arrives in the destination country. 

Sellers are responsible with ensuring to comply with laws and regulations of the country of destination. Generally, the buyer is responsible for paying customs duties on receipt of the package.

Certain countries may require certain documentation before the items are sent. If the necessary information is not provided, this may result in delays in the order.

Learn more about custom fees:

Australia

Etsy collects and remits GST on certain orders delivered to Australia. Learn more about GST on Etsy.

Etsy will automatically collect and remit the tax from Australian buyers where the goods are less than or equal to AUD$1,000. Sellers may need to include additional information on the customs form depending on the delivery method.

Information for sellers

If you’re a seller located outside of Australia who delivers a package to a buyer in Australia that is less than or equal to $1,000 AUD, and you deliver using a commercial carrier, such as Fedex, you may need to include the information below to ensure the buyer receives their order without delay:

  • Etsy’s Australian Reference Number (ARN): 3000 0920 7152
  • The item(s) total, postage costs, GST charged, and full order total.

Australian customs authorities may look at the customs form to confirm that GST was paid on the order. Multiple items purchased in the same order should be dispatched in the same package.

Sellers who dispatch packages using a national mail service, such as the United States Postal Service, PostNL in the Netherlands, Royal Mail in the United Kingdom, or Canada Post, may not be required to provide this additional information.

Sellers are advised to consult with their preferred carrier for more guidance on where to enter the information above.

Learn more about GST in Australia.

European Union

Goods delivered between EU countries

Customs duty is not applied on goods sold within the EU. However, VAT may still be applicable and should be included in the purchase price at the time of sale. Since Etsy requires sellers to list their prices inclusive of VAT, the buyer shouldn’t have to pay any additional amounts other than the total price displayed at checkout.

Goods arriving into EU from non-EU country

When delivering goods from a non-EU country into an EU country, customs fees and import VAT may apply on these goods.

The amount of customs duty and import VAT to be paid will be assessed at the point of entry of the destination country. This may result in the buyer having to pay additional charges which are not included in the total price displayed at checkout.

Generally, VAT isn’t due when the total value of all goods in a consignment (value not inclusive of custom duties or transport costs) is less than the destination country threshold. The threshold may vary from €10 EUR to €22 EUR, depending on the EU country.

For import VAT, the rate that is assessed is the rate set by the country that the package is delivered to. 

Customs duty does not typically apply on goods where the value doesn’t exceed €150 euro.

Learn more about buying goods from non-EU countries.

New Zealand

New Zealand requires Etsy to collect goods and services tax (GST) on all goods sold to New Zealand buyers from overseas. Etsy collects and remits the tax on applicable orders delivered to New Zealand. The GST rate is 15%. Learn more about GST on Etsy.

Information for sellers

For orders delivered to New Zealand from overseas, sellers must include the following information on the outside of their packages and on the customs slip:

  • Etsy’s Inland Revenue Department (IRD) number 122-669-181.
  • Indication that GST has been applied.

If the seller does not meet these requirements, the buyer may be charged GST again at the time of delivery. Sellers should also include this additional information to the customs forms on these packages. If a seller fails to include this information, the buyers may be charged GST at the border and additional handling fees. Etsy will only be able to refund the GST to the buyer on proof of payment of such additional fees.

GST does not apply if the transaction is between buyers and sellers both located in New Zealand.

Learn more about GST in New Zealand.

Norway

Norway requires Etsy to collect Valued Added Tax (VAT) on applicable goods sold to Norway buyers from overseas. Etsy collects and remits the 25%  tax on applicable orders delivered to Norway if:

  • The seller is located outside Norway
  • The delivery address is in Norway
  • The package has items less than 3,000 NOK (approximately €275 /$310*)
  • The item is subject to VAT at the standard rate of 25%.
  • Items that Etsy is not required to charge VAT on, but instead will be charged and collected at the border, are Food & Drink (including Sweets and Chocolate) and goods subject to excise duty. For more information, visit the Norwegian Tax Authority’s website.

* Based on June 2020 conversion rates.

Learn more about VAT on Etsy.

Information for sellers

For orders being delivered to Norway from overseas where Etsy has applied VAT on the orders, Etsy sellers must include the following information on the outside of their packages and on the customs slip:

  • Etsy Ireland’s Norwegian tax (VOEC) number 2021137.
  • Note when VAT has been already collected.

If the seller does not meet these requirements, the buyer may be charged VAT again at the time of delivery.The buyer will then need to pay the VAT at customs along with additional handling fees that the carrier may apply. The buyer will only be able to request a refund from Etsy for the VAT portion only upon proof of payment at customs.

Sellers might also need to add additional information to the customs forms on these packages. Review the Norwegian Tax Authority’s website to learn what information to include.

Learn more about VAT in Norway.

United Kingdom

Information for sellers

If you’re a seller located outside of the United Kingdom (UK) but you sell to UK buyers, you might be considered an “overseas seller”. Her Majesty’s Revenue & Customs (HMRC) defines an “overseas seller” as a seller who sells goods stored in the UK to UK consumers and doesn’t have a business establishment in the UK. 

Overseas sellers are required to register for UK VAT. Please contact your local advisor or HMRC directly for more information regarding any obligations you may have.

Learn more about delivery into the UK.

United States of America

Goods purchased from the US delivered overseas

Sellers in the US that are delivering overseas can enter their package information on the USPS website to determine which customs form is necessary.

Goods arriving into the US

When goods are delivered into the US, the buyer (“Importer”) is responsible for any fees/taxes/duty that may accrue on the merchandise when it clears Customs and Border Protection (“CBP”).

If any duty is owed, CBP will charge a processing fee for clearing the package. Duty and the processing fee are due at the local post office of the Buyer, where the package has been forwarded.

Information for sellers

Most paperwork for sending packages internationally has a section for providing CBP information. However, at a minimum it should include:

  • Seller's name and address; 
  • Description of the item(s) in English; 
  • Quantity of each type of item being delivered; 
  • Purchase price in US dollars; 
  • Weight of the item(s); and 
  • Country of origin of the product itself.

Merchandise dispatched through the international postal service is forwarded upon its arrival in the US to one of U.S. Customs and Border Protection International Mail Branches for clearance. If the item is less than $2,000 USD in value and is not subject to a quota or is not a restricted or prohibited item, a CBP official will usually prepare the paperwork for importing it, assess the proper duty, and release it for delivery.

Packages whose declared value is under $800 USD will generally be cleared without any additional paperwork prepared by CBP.

Learn more on the U.S. CBP website.

Good arriving into certain US states

Etsy will calculate, collect, and remit sales tax for orders delivered to customers in US states that require it, no matter the location of the seller.

Rest of the world

Other countries may also apply customs duty and/or import VAT on goods purchased from another country. The amount of customs duty and import VAT to be paid will be assessed at the point of entry of the destination country. This may result in the buyer having to pay additional charges which are not included in the total price displayed at checkout.

As the threshold for the application of such charges may vary from country to country, please contact your local customs/ tax office for further information. Alternatively, you should check with your local tax advisor for more information.

Etsy is not responsible for the collection or determination of any custom duties or import VAT costs.

Learn more on country-specific tax authorities websites:

Where can I find customs forms?

You can obtain customs declaration forms from your mail provider. Most of the time, these are available online.

 

Disclaimer: This article does not constitute legal or tax advice and is for information purposes only. You should consult with a professional advisor if you have any additional queries.

Last updated July 2020

If you live outside of the US and are charged sales tax on your Etsy order, this is most likely the Value-added tax (VAT) required in your country. Etsy is required by your country’s law to charge VAT on some purchases.

Etsy is required to collect and remit VAT on digital items purchased by buyers in many countries around the world.

You’ll see the total price with VAT included on each listing that applies, as well as in your basket, invoice, and purchase page.

If you require a VAT invoice for your physical purchase, please contact the seller directly. As independent business owners, each seller is responsible for issuing a VAT invoice when required. Here is how you can contact the seller for help with this.

When a package is delivered internationally, it may be subject to import taxes, customs duties, and/or fees imposed (e.g. handling fees) by the destination country. These charges are typically due once the package arrives in the destination country. Learn more about customs and import taxes.

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