Items sold on Etsy may be subject to VAT or sales tax. Etsy informs buyers about these taxes and duties in several ways.
What is VAT?
VAT stands for value-added tax. It's a tax based on the consumption of goods and services that are commonly found in the EU and select other regions of the world.
VAT is also known as JCT in Japan; GST in New Zealand, Australia and India; and QST in Quebec.
VAT may be charged to buyers on their purchases (“VAT on Items Sold on Etsy”) as well as to eligible sellers on their paid seller fees ("VAT on seller fees”).
If your buyers are located in the US, certain taxes may also apply. Learn more about sales tax in the US.
When Etsy collects and remit taxes
Etsy displays information on items in your shop, during the checkout process, and in other relevant places to indicate to buyers when taxes are applicable.
Etsy automatically collects and remits applicable taxes at checkout in the following situations:
- All orders less than or equal to AUD$1000 shipped shipped overseas into Australia. GST is applied to the total including shipping costs.
- Digital downloads purchased by a shopper in a VAT/GST required location. Additional import duty and taxes never apply to digital downloads.
- All orders shipped to certain US states.
When sellers must collect and remit taxes
For situations not noted above, sellers are responsible for collecting and remitting tax on their sales, where applicable. If you're required to charge VAT, GST, or other applicable taxes on the items you sell, it is your responsibility to consider these applicable taxes when pricing your items on Etsy.
In cases where physical goods are shipped cross-border between countries or states, please be aware that there may be additional duties and taxes that may apply. This will be the responsibility of the buyer to pay, unless otherwise stated.
Buyers will see the following information based on their location:
|Buyer Location||Information Displayed|
|United States or Canada (except Québec)||n/a|
|European Union, Australia, Belarus, Iceland, New Zealand, Norway, Russia, Serbia, South Africa, South Korea, Taiwan, Turkey, Switzerland, or the United Arab Emirates||VAT included (where applicable)|
|Australia, New Zealand, or Québec (Canada)||GST included (where applicable)|
|Anywhere else||Local taxes included (where applicable)|
A buyer’s location is determined by their default shipping address (or using local country settings if a shipping address is not available), and once they begin the checkout process we reconfirm their location using their selected shipping address.
This information will be displayed on Etsy in the following areas across desktop, mobile web, Etsy applications, and Pattern by Etsy sites:
- Listing pages
- Cart and checkout pages
- Purchase confirmation emails to buyers
- The buyer’s purchase history section
- The buyer’s receipt page
Additional customs duties and taxes
Etsy also displays information about the potential for additional customs duties and import taxes on cross-border purchases.
If a buyer and a seller are located in different countries, we inform buyers that additional duties and taxes (such as those charged at customs) may apply. This is to make it clear to buyers that they may be responsible for paying these additional fees.
This information is displayed in the same areas listed in the table above, with the exception of listing pages. If a buyer and seller are located in the same country, this information is not applicable and not displayed.