A VAT Identification Number (VAT ID) is used to identify individual businesses for the collection of taxes. All sellers must comply with their tax obligations. Etsy requires sellers in certain countries to add a VAT ID to their account if they are approaching a particular threshold of sales in order to continue selling on Etsy.
To add or update your VAT ID in Shop Manager:
VAT IDs have specific formats and European VAT IDs can be checked on the European Commission website for validity.
If you notice that your VAT ID is coming up as invalid, you will need to contact your local tax department to have it updated. You may also have an obligation to register your VAT ID with your local government.
Do I need to register for a VAT ID?
Sellers in certain countries may be required by their local tax authorities to register for a VAT ID if they reach their country’s sales threshold. However, in some countries, you may also register for VAT even if you have not reached the threshold.
VAT laws vary from place to place. We’re unable to advise sellers on whether they need to acquire a VAT ID. If you have any questions about whether you need a VAT ID, please consult your local tax authority or tax advisor.
Additionally, Etsy requires sellers in certain countries to add a VAT ID to their account to continue selling on the platform if they are approaching their country’s sales threshold during the calendar year.
How will Etsy use my VAT ID?
By providing a VAT ID to Etsy, you are establishing a business-to-business relationship between your shop and Etsy. This status and your business location determine whether or not Etsy will charge VAT on seller fees.
If you have a VAT ID, it should be added as your primary taxpayer ID. Learn what taxpayer details you can add in the secondary taxpayer field.
In some countries, Etsy has a reporting obligation to share your VAT ID or other taxpayer ID, together with the total value of your seller fees applied for that period, with local authorities. Contact your local tax authorities for more information.