Etsy fees for UK sellers (2026)

The UK stacks five fee layers plus 20% VAT on top of every fee for sellers who are not VAT-registered — which is why the same £30 order leaves a UK seller with less than a US seller gets from $30. Exact lines below, verified Sep 15, 2026.

Every layer, in order

Listing fee — ≈£0.16 ($0.20 converted), again on renewal/sale£0.16
Transaction fee — 6.5% of item + shipping + gift wrap6.5%
Payment processing (Etsy Payments UK)4% + £0.20
Regulatory operating fee — raised from 0.32% to 0.48% on Jun 22, 20260.48%
Offsite Ads (ad-attributed orders only)12% / 15%
VAT on Etsy's fees — added unless your VAT ID is on file20%

Worked example: £25 item + £3.50 shipping

Buyer pays£28.50

Listing fee−£0.16

Transaction fee (6.5%)−£1.85

Payment processing (4% + £0.20)−£1.34

Regulatory operating fee (0.48%)−£0.14

VAT on fees (20%)−£0.70

Total Etsy fees−£4.19 (14.7%)

Your postage cost (example £3.10)−£3.10

You keep£21.21

The VAT-on-fees trap

Most small UK sellers are not VAT-registered (threshold £90,000). Etsy adds 20% VAT to its own fees — not to your sale — so the headline 6.5% transaction fee is really 7.8%, and your total fee load lands near 14–15% of gross instead of ~11%. If you do register and file your VAT number with Etsy, fees become reverse-charge (no VAT added). The calculator has a "I'm VAT-registered" toggle that models both.

Digital downloads

Same fee structure, no shipping layer. On an £8 printable the fixed fees (£0.16 + £0.20) plus 20% VAT push the effective rate near 19% — price low-price printables with that in mind.

Run your exact numbers (UK is a built-in country profile): open the calculator →

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Sources: Etsy Fees & Payments Policy · Payment processing (UK 4% + £0.20) · Regulatory operating fee (UK 0.48% since 2026-06-22). Not affiliated with Etsy, Inc.