As of January 1st, 2024, online marketplaces like Etsy are required under UK law to provide details of sellers and their transactions to HMRC (His Majesty’s Revenue and Customs). This reporting is referred to as the Model Rules for Reporting by Platform Operators (UK MRDP).
In January 2025, Etsy will be required to provide information regarding UK sellers who joined the platform in 2024 and meet the reporting criteria. Moving forward, Etsy will report transactions for all UK sellers who meet the threshold, regardless of when they joined.
If you’re a seller who resides in the UK, Etsy is required to send your information to HMRC authorities when:
- You complete 30 or more transactions in a calendar year with physical goods
Or
-
You make €2,000 or more on physical goods sales after taxes and fees in a calendar year
UK thresholds depend on when a seller onboarded. For example if you onboarded on the Etsy platform on 1 July 2024, the threshold is reduced to €1,000 or 15 transactions.
Or
- You make any sales of made-to-order digital items in a calendar year
Sellers who don’t meet the above thresholds within the tax year are exempt from reporting.
Which seller data is Etsy required to report under the Platform Operators Regulations?
The information that Etsy is required to share with HMRC depends on whether you’re registered as an individual or a business entity.
Etsy is legally required to collect and verify the above information to report to local authorities in order to comply with HMRC reporting rules. Please review and update your tax information to make sure it’s accurate for reporting.
If Etsy reaches out to you to request your information but you don’t provide it within the timeframe specified in the email within 30 days, Etsy will put your shop on pause via Vacation Mode. This means you won’t be able to unpause your shop or receive new orders, and your listings won’t appear in search results on Etsy until you confirm your info.
Information Etsy is required to report:
- First and Last Name
- Primary address
- Date of birth
- VAT Identification/Registration number (where available)
- Any TIN issued, plus each Member State of issuance.
- A bank account number that your sales funds are paid or credited to.
Information Etsy is required to report:
- Legal name/Shop name
- Primary address
- VAT Identification/Registration number (where available)
- Any TIN issued, plus each Member State of issuance.
- Company registration number
- A bank account number that your sales funds are paid or credited to.
Financial data collected
Etsy is also obligated to share information on seller’s transactions with the HMRC, including:
- Total number of transactions completed during the period.
- Total amount paid or credited to the seller during each quarter of the period. The total amount paid is your total gross sales minus any refunds, fees, and Etsy-remitted taxes.*
- Total amount of fees, commissions, or taxes withheld or charged by Etsy during each quarter of the period.
*Consideration will include sales of physical items as well as the sale of made-to-order digital downloads. This does not include instant download digital files that the buyer can access immediately upon purchase.
What if my reported information is incorrect?
If you meet the threshold for reporting, you will receive notification via email prompting you to review, update, or supply any missing taxpayer details. Ensure the accuracy of your information on the tax & legal page for reporting reasons.
Learn more about how to update your legal name and taxpayer information.