Etsy Fees UK 2026
If your Etsy bank account is in the UK, you pay a different set of fees from US sellers: higher payment processing, a regulatory operating fee, and 20% VAT on top of Etsy's fees unless you are VAT-registered. Here is every fee for UK sellers in 2026, with a worked example.
Etsy fees for UK sellers
- Listing fee: $0.20 per listing, about £0.15. Charged in US dollars and converted. Renews every 4 months and on every sale.
- Transaction fee: 6.5% of the order total, including the postage and gift wrap you charge.
- Payment processing: 4% + £0.20 per order, on the total the buyer pays.
- Regulatory operating fee: 0.48% of the order total (since 22 June 2026).
- Offsite Ads: 15% of the order total when a sale comes from an Etsy ad on another site, 12% if your shop made $10,000+ in the last 12 months. Capped at $100 per order.
- Currency conversion: 2.5% if your listings are priced in a currency other than pounds.
- VAT on fees: 20% on top of all Etsy fees, unless you have added a UK VAT number to your Etsy account.
Worked example: a £20 item with £4 postage
The buyer pays £24. Listing fee £0.15, transaction fee £1.56, payment processing £1.16, regulatory fee £0.12, and 20% VAT on those fees £0.60. Total fees: £3.58, or 14.9% of the order.
The item costs £6 to make, packaging 60p and postage £3. You keep £10.82, a 45.1% margin.
Three things that change the result
- VAT-registered: with a VAT number on your Etsy account there is no VAT on the fees. Fees fall to £2.99 (12.4%) and you keep £11.41.
- Offsite Ads: if the same sale comes from an Etsy ad, add £3.60 plus VAT. Fees jump to £7.90 (32.9%) and you keep £6.50.
- Listing in dollars: pricing in a currency other than pounds adds 2.5% conversion plus VAT. Fees rise to £4.30 (17.9%).
What to charge
For a 30% margin on this example, the item price needs to be at least £13.64 (with £4 postage charged). The break-even item price is £7.54. If the sale might come through Offsite Ads, the 30% price is £21.81.
FAQ
Do UK sellers pay VAT on Etsy fees?
Yes, 20% on all seller fees, unless you are VAT-registered and have added your VAT number to Etsy. VAT-registered sellers can usually reclaim the VAT on their business costs instead.
Does Etsy charge fees on postage?
Yes. The transaction fee, payment processing and the regulatory fee are all charged on the postage you charge the buyer.
Why are UK fees higher than US fees?
Processing is 4% instead of 3%, there is a 0.48% regulatory operating fee, and VAT is added on top.
Run your own numbers
The free Etsy fee calculator works out one sale. The Etsy Fee & Profit Calculator 2026 spreadsheet does a whole price list, has presets for 15 seller countries, lets you edit every rate and finds the lowest price for your target margin (Excel and Google Sheets).
Example costs: item £6 / A$10 in materials and time, 60p / A$0.60 packaging, and the postage you pay. Rates checked October 2026 against Etsy's Help Center. Etsy can change fees at any time; your Payment account shows the exact amounts.
Etsy is a trademark of Etsy, Inc. Sheets & Sums is not affiliated with Etsy. This page is general information, not tax advice.