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 shipping 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 ship 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 shipments.
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 January 1, 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.