Custom Fees and Physical VAT Collection

When a package ships 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. In some countries Etsy is responsible for collecting the VAT or similar tax  on the sale of goods on the Etsy platform.  

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Am I required to charge VAT on the items I sell on Etsy?

VAT stands for value-added tax. It's a tax based on the consumption of goods and services that is commonly found in the EU and select other regions of the world.

VAT is also known as JCT, GST, SST, or QST in some countries.

If you’re a VAT-registered seller, you may be required to charge VAT on the physical items that you sell on the Etsy platform. For information on VAT requirements in your location, please consult your local tax authority or a licensed professional.

Learn how taxes work on digital items.

Learn how taxes work on seller fees.

Learn how to add your taxpayer ID for your Etsy shop.

Do I need to provide anything to the buyer?

Businesses in certain countries may need to provide an invoice when supplying goods or services. For further details on the invoice and these requirements, please contact your local tax authorities. For sellers in the EU, you can  find useful information on the European Commission's website.

Where can I find customs forms?

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

Goods purchased from the US shipping overseas

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

I have questions about selling to a specific country

Some countries have specific directions for sellers regarding customs and international taxes. Select the dropdown for the country you’re selling to below. For information about IOSS numbers, please see Selling to European Union buyers.

Some orders shipped to Etsy customers in Australia are subject to Goods & Sales Tax (GST). Etsy will collect a 10% GST on orders if each of the following applies:

  • Seller is located outside Australia.
  • The package is being shipped to a buyer in Australia.
  • The total value of the package is less than or equal to $1,000 AUD.

Etsy automatically includes the tax in the buyer’s total at the last stage of the checkout process. Etsy is then responsible for remitting it to the Australian Taxation Office (ATO).

For orders placed through PayPal, Etsy sends the GST collected to the seller as a part of the payment. Etsy then adds the tax to the seller’s Etsy statement so that we can remit the tax to Australian authorities.

If you’re a seller located outside of Australia who ships a package to a buyer in Australia that is less than or equal to $1,000 AUD, and you ship 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, shipping 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 shipped in the same package.

Sellers who ship 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.

Please consult your preferred carrier for more guidance on where to enter the information above.

Etsy will not collect GST where the total value of the package being imported into Australia is more than $1,000 AUD.  Sellers may need to add additional information to the customs forms on these packages and there may be additional taxes payable on import. Etsy will not apply GST to transactions for goods  located in Australia. Please contact your tax advisor regarding any tax obligations. 

Learn more about GST in Australia.

Orders shipped to Etsy customers in New Zealand are subject to Goods & Sales Tax (GST). Etsy collects a 15% GST on orders when each of the following applies:

  • Seller is located outside New Zealand
  • The package is being shipped to a buyer in New Zealand

When an order fits these criteria, Etsy automatically includes the tax in the buyer’s total. The buyer pays the tax at checkout, and Etsy remits it to the New Zealand Inland Revenue Department.

For orders placed through PayPal, Etsy sends the GST collected to the seller as a part of the payment. Etsy adds the tax to the seller’s Etsy statement so that we can remit the tax to New Zealand authorities.

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.

As a seller, if you don’t meet these requirements, the buyer may be charged GST again at the time of delivery. If a seller fails to include this information, the buyers may be charged GST at the border and additional handling fees. 

Etsy will not apply GST to transactions where the goods are  located in New Zealand. Please contact your tax advisor regarding any tax obligations. 

Learn more about GST in New Zealand.

Etsy collect a VAT of 25% on orders shipped to Etsy customers in Norway if each of the following applies:

  • The seller is located outside Norway
  • The shipping address is in Norway
  • The package has items less than 3,000 NOK
  • 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 Candy and Chocolate) and goods subject to excise duty. For more information, visit the Norwegian Tax Authority’s website

When an order fits these criteria, Etsy automatically includes the tax in the buyer’s total. The buyer pays the tax at checkout, and Etsy remits it to the Norwegian Tax Authority.

Etsy is not required to issue a VAT invoice to buyers for orders meeting these specifications.

For orders placed through PayPal, Etsy sends the VAT collected to the seller as a part of the payment. Etsy adds the tax to the seller’s Etsy statement so that we can remit the tax to Norwegian Tax Authority.

For orders being shipped to Norway from overseas where Etsy has applied VAT on the orders, Etsy sellers must include Etsy Ireland’s Norwegian tax (VOEC) number, 2021137, on the outside of their packages and on the customs slip, and provide it to the carrier service. 

Learn more about VOEC numbers for packages sent to Norway

There may also be additional information required for the customs forms on these packages. Review the Norwegian Tax Authority’s website to learn what information to include.

As a seller, if you don’t meet the requirements for Etsy to collect VAT, 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. 

 

Etsy will not collect VAT where the items being imported into Norway are valued at more than 3,000 NOK.  Sellers may need to add additional information to the customs forms on these packages and there may be additional taxes payable on import. Etsy will not apply VAT to transactions where the goods are located in Norway. Please contact your tax advisor regarding any tax obligations. 

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

  • The buyer is located in the UK.*
  • The goods are dispatched from outside the UK.
  • The total value of the package (excluding delivery) is less than or equal to £135.

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

For eligible items under the £135 threshold, UK shoppers will see VAT-inclusive pricing when they view listings in search and browse, as well as on the listing page. The VAT amount seen before purchase is an approximate value. The final VAT amount will be calculated at checkout and will be applied to full order total, which includes item price, shipping, and gift wrap charges. 

Sellers are required as per our Seller Policy to represent their listings as accurately as possible to buyers to ensure the correct VAT amount is charged on VAT eligible items. Learn more about listing items.

In these cases, Etsy is solely responsible to collect and remit VAT to HMRC. Neither you nor the carriers should be collecting VAT from buyers under the £135 threshold. Learn more on the HMRC website .

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  and the marketplace, Etsy, will collect and remit the VAT to HMRC 
  • If required by the shipping 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.

You don’t need to register for VAT with HMRC for sales of items where Etsy is collecting the VAT, and there’s no requirement to upload tax certificates or any other tax information for these sales. However, you may be subject to other tax or legal requirements depending on your personal circumstances. Please consult a local tax professional for more information.

If the value of the package (excluding delivery) is under the £135 threshold, Etsy is solely responsible to collect and remit the VAT to HMRC.

Learn more about UK VAT.

Etsy will not collect VAT where the items being imported into the UK are valued at £135 or more.  Sellers may need to add additional information to the customs forms on these packages and there may be additional taxes payable on import. Etsy will not apply VAT to transactions where the goods are located in the UK between UK sellers and UK buyers. We recommend that you speak to a tax advisor with experience in UK VAT or reach out to HMRC directly for more information.

Goods arriving into the US

When goods are shipped 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.

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

  • 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)
  • Country of origin of the product itself

Merchandise shipped 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 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 will generally be cleared without any additional paperwork prepared by CBP.

Learn about U.S. Customs and Border Patrol.

Good arriving into certain US states

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

Goods sold within the EU

Customs duty is not applied on goods sold within the EU. 

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.

If your annual distance sales are below €10,000

Sellers in the EU whose sales to other EU countries are below the €10,000 annual threshold do not have to charge foreign VAT on goods sold and shipped to other EU countries. Instead, you may have to charge your domestic VAT rate and report these sales in your regular domestic VAT return. 

If your annual distance sales exceed €10,000

As an EU seller, if your sales to other EU countries are  above the €10,000 annual threshold, you’ll have the option to pay the VAT due across the EU  in one VAT return, this is known as One-Stop Shop (OSS). You may also be required to separately report VAT on domestic sales in your home country. Once you register for OSS, you can add your OSS VAT number to your Etsy account

Goods arriving into EU from non-EU country

VAT and or Customs Duty may apply to the order. 

The amount of customs duty 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. Customs duty only applies to goods where the value exceeds €150.

As of July 1, 2021, Etsy collects VAT from EU buyers when they receive a shipment from a non-EU country if the value of the package (excluding delivery and taxes) is less than or equal to €150. 

As of January 2021, the United Kingdom is no longer part of the EU. If you’re a seller outside of the UK and shipping into the UK, please review the specific UK shipment requirements.

If you’re sending a package to the EU from a non-EU country that is less than or equal to €150, you’ll need to make sure Etsy’s IOSS number is electronically transmitted by your shipping provider. This number can be found next to VAT-eligible orders on your Orders & Shipping page or your order confirmation emails. 

When you purchase shipping labels on Etsy, the IOSS number is automatically transmitted for you.  Etsy’s IOSS number will not be displayed on the shipping label you purchased on Etsy.

If you purchase shipping outside of Etsy, check with your shipping provider to make sure they transmit this number electronically when they process your shipment. This tax number should not be written on the package. However, make sure the net amount of the order is displayed on the front of the package in Euro. The Euro amount may either be printed on the label or hand-written by you on the package

For packages with a value more than €150, VAT (and customs) will be collected on import from the buyer by the postal carrier.

Since these regulations are new, many shipping carriers are still figuring out their IOSS intake and delivery flows. It’s best to check with your shipping provider to know exactly what process you should be following.

The IOSS number is different from the tariff code. You may be required to add a tariff code to shipments into the EU. Learn more about tariff codes.

Other countries may also apply customs duty and/or VAT on goods purchased from another country. As the threshold for the application of such charges may vary from country to country, please contact your local customs/ tax office and local tax advisor for further information.

Etsy is not responsible for the collection or determination of any custom duties or VAT costs for the countries listed below, so we recommend that you check individual tax authority websites for more information: 

Depending on your country and tax situation, you may be required to remit and report on VAT to your country’s tax authority.

Here are answers to some common questions about VAT:

For information on VAT requirements in your location, please consult your local tax authority or a licensed professional.

If you are a VAT registered seller, you may be required to charge VAT on the items that you sell on the Etsy platform.

Learn more about how VAT/GST works on digital items and physical items.

You can add or update your VAT ID in Shop Manager:

  1. On Etsy.com, go to Your Account, then Shop Manager.
  2. Go to Finances.
  3. Select VAT ID.
  4. Enter your VAT ID.
  5. Select Submit.

VAT IDs have specific formats and European VAT IDs can be checked on the European Commission website for validity.

Learn more about VAT IDs on Etsy.

Depending on your business status and location, Etsy may be required to collect VAT on seller fees accrued each month and remit it to the relevant tax authority.

Etsy may also need to collect VAT on Etsy Payments processing fees for sellers located in eligible Etsy Payments countries where required.

Learn more about VAT on seller fees.

Etsy provides downloadable VAT invoices to sellers in Australia, the EU, India, Japan, New Zealand, Norway, Russia, South Africa, South Korea, Switzerland, and Taiwan.

VAT invoices will be available on the first of each month for the previous month’s statement.

You can access your VAT invoice in your Payment account. Once there, click on the month to get an invoice for that period. The download link will appear above the breakdown of your activity for the month.

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