Custom Duties and 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 for complying with the 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 dispatched into 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 sends 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.

As of 1st January 2021, the EU doesn’t include the United Kingdom.

Goods arriving into EU from non-EU country

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

From 1st July 2021

Etsy will collect VAT on certain physical goods sold to EU buyers that are imported into the EU. Etsy will automatically collect and remit the tax from EU buyers where the value of the imported physical goods are less than or equal to 150 EUR.

Each EU country sets their own VAT rate. The VAT rate is between 17 and 25% for most goods, however some goods are tax-exempt or taxed at lower rates. Learn more about VAT rate per EU country.

Learn how VAT works on digital items sold to EU buyers.

Buyers will see estimated VAT when they view items in search, browse, and the listing page. They’ll also see estimated VAT when they add the item to the basket. The final VAT will be calculated at checkout.

Before 1st July 2021

The amount of customs duty and 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 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 EUR.

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 into 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 into 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 /US$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

Etsy collects VAT on the sale of digital items delivered via automatic download to buyers in the UK. Learn more about VAT on digital items.  

As of 1st January 2021, Etsy collects VAT from buyers on orders that meet the following criteria:

  • The purchase is for a physical item.  
  • The buyer is located in the UK.
  • The total value of the package (including gift wrap but excluding delivery) is less than or equal to 135 GBP.
  • The goods are dispatched from outside the UK.*

*Etsy is not obligated to collect VAT on packages from the EU to Northern Ireland, or on packages from Northern Ireland to other parts of the UK.  Learn more.

VAT is applied to the full order total, which includes item price, delivery, and gift wrap charges.  

How VAT appears at checkout

Buyers will see estimated VAT when they view items in search, browse, and the listing page. They’ll also see estimated VAT when they add the item to the basket. The final VAT will be calculated at checkout.  

Information for sellers

We recommend sellers include the following information on the packages:

  • Packing slip in the package with the separate VAT amount shown, which may appear under Tax
  • Note on the packing slip: The item is under 135 GBP and the marketplace, Etsy, will collect and remit the VAT to HMRC 
  • If required by the delivery carrier, Etsy’s UK tax number 370 6004 28 can be placed on outside of the package. Etsy’s UK tax number should not be used for any other purposes.

Learn how to print a packing slip.

If the value of the package (excluding delivery) is under the 135 GBP threshold, Etsy is solely responsible to collect and remit the VAT to HMRC. Learn about VAT on physical goods sold on Etsy.

United States of America

Goods purchased from the US dispatching 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 dispatched 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 shipped; 
  • 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 VAT on goods purchased from another country. The amount of customs duty and 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 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 May 2021

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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