Etsy fees for UK sellers
UK shops pay a higher payment processing rate than US shops, plus two charges US sellers don't: a regulatory operating fee and, unless you're VAT registered, 20% VAT on top of every Etsy fee.
| Fee | Rate | Charged on |
|---|---|---|
| Listing fee | About £0.15 (US$0.20) | Each item sold, and each 4-month renewal |
| Transaction fee | 6.5% | Item price plus postage |
| Payment processing | 4% + £0.20 | The order total |
| Regulatory operating fee | 0.48% | Item price plus postage |
| VAT on fees | 20% | All of the above, if you're not VAT registered |
| Offsite Ads | 15% or 12%, up to about £75 | Only sales from Etsy's ads on other sites |
| Currency conversion | 2.5% | Only if you list in a currency other than pounds |
The formula in plain English
- Order total = item price + postage you charge.
- Fees before VAT = 6.5% + 4% + 0.48% of the order total, + £0.20 + the listing fee (+ Offsite Ads or conversion if they apply).
- Total fees = fees before VAT × 1.2 (or × 1 if you're VAT registered).
- Profit = order total − total fees − cost to make − postage you pay.
Worked example: a £20 item with £3.50 postage
- Order total: £23.50
- Transaction fee £1.53 + payment processing £1.14 + listing £0.15 + regulatory £0.11 = £2.93
- VAT at 20% on those fees: £0.59
- Total fees: £3.52, about 15% of the order; you receive £19.98
- Minus £6 to make it and £3.50 postage: £10.48 profit, a 44.6% margin
To keep £8 profit on the same item, the calculator says to charge £17.14 plus postage. Need your cost to make first? Try the candle, resin or 3D print calculators.
FAQs
Do I pay VAT on Etsy fees?
Yes, if you're not VAT registered: Etsy adds 20% VAT to its fees and you can't reclaim it, which makes every fee a fifth more expensive. If you are VAT registered, you can reclaim it, so set VAT on fees to 0.
What is Etsy's regulatory operating fee?
A charge on UK orders that Etsy says covers the cost of complying with UK regulations. It rose from 0.32% to 0.48% of the item price plus postage on 22 June 2026.
How much does Etsy take from a £20 sale?
With £3.50 postage, £3.52, about 15% of the order once VAT is added. Through Offsite Ads at 15%, another £4.23 including VAT.
Does selling to US buyers cost more?
Not if you list in pounds and get paid in pounds: there's no currency conversion fee. The buyer's bank converts the price for them.
Do I need to charge my buyers VAT?
Only once you're VAT registered, which is compulsory above £90,000 of taxable turnover in 12 months. Below that, most small Etsy sellers aren't registered and simply pay VAT on Etsy's fees.
Can I turn off Offsite Ads?
Only while your shop has sold less than US$10,000 in the past 12 months. Above that they're compulsory at 12%.
Not affiliated with Etsy. Fees checked October 2026; Etsy can change them, so check yours if in doubt. This isn't tax advice.
More calculators for makers
- 3D Print Cost Calculator: Filament, electricity, printer wear, labour and Etsy fees, with a suggested selling price.
- Candle Wax & Fragrance Calculator: How much wax and fragrance oil to use, cost per candle and a selling price after Etsy fees.
- Epoxy Resin Calculator: How much resin and hardener to mix for coasters, trays, art and moulds, with cost per piece.
- Quilt Backing Calculator: Backing, batting and binding yardage for any quilt size, with the seam layout that wastes least.
- Etsy Fee Calculator (US): Every Etsy fee on a sale, your profit and margin, and the price to charge for the profit you want.