Free tools › Guides
Etsy UK fees explained (October 2026)
Last checked 8 Oct 2026. Items marked date-sensitive can change; follow the source links before relying on them.
Every fee a UK Etsy seller pays, with the exact rate, what it's charged on and a link to Etsy's own page. Two worked examples show where the money goes on a £23.50 physical order and a £10 digital download.
Want your own numbers? Use the free Etsy UK fee calculator. It uses the same rates as this page.
Every Etsy fee for a UK seller date-sensitive
These are for a UK shop paid through Etsy Payments into a UK bank account, listing in GBP. Etsy quotes its fees excluding VAT.
| Fee | Amount | Charged on | Source |
|---|---|---|---|
| Shop set-up fee | One-time and non-refundable. Etsy doesn't publish the amount: it "varies by location" and is shown during shop set-up. | Opening a shop | Etsy Help, Sell on Etsy |
| Listing fee | $0.20 USD per listing (shown as £0.15 on Etsy's UK sell page), converted to your currency | Each listing and each renewal. Listings expire after 4 months. A multi-quantity listing renews (another $0.20) each time one sells. | Etsy Help, Sell on Etsy |
| Transaction fee | 6.5% | Item price + postage + gift wrap | Etsy Help |
| Payment processing (UK) | 4% + £0.20 per order | Total sale price, including postage and "any applicable sales tax" | Etsy Help |
| Regulatory Operating Fee (UK) | 0.48% | Item price + postage + gift wrap | Etsy Help |
| Offsite Ads (only on sales that come from one) | 15% if your shop has always made under $10,000 USD in any 365 days (you can opt out); 12% and compulsory once you pass that. Capped at $100 USD per order. | Order total of an attributed sale | Etsy Help |
| Currency conversion | 2.5% | Only when your listing currency differs from your bank currency. List in GBP to avoid it. | Etsy Help |
| VAT on Etsy's fees | 20% (UK standard rate) on the fees above, unless you've added a VAT ID to your Etsy account | All seller fees | Etsy Help, GOV.UK |
Etsy's full Fees & Payments Policy (etsy.com/uk/legal/fees) says it was updated on 5 Oct 2026. Etsy's site blocked automated fetching when this page was checked, so that version hasn't been read in full. The figures above come from Etsy's Help Centre pages, which loaded fine on 8 Oct 2026. If you're about to open a shop, read the policy page in your own browser.
The quick formula
For a normal sale (no Offsite Ads, one listing fee, not VAT-registered):
Etsy fees ≈ 1.2 × (10.98% × order total + £0.35) = 13.176% of the order + £0.42
The 10.98% is 6.5% transaction + 4% processing + 0.48% regulatory. The £0.35 is the £0.20 processing charge plus the £0.15 listing fee. The 1.2 adds 20% VAT. If you have a VAT ID on Etsy, drop the 1.2. If the sale came from Offsite Ads, add 15% to the 10.98%.
Worked example 1: a physical item, £20 + £3.50 postage
UK seller, not VAT-registered, no Offsite Ads, one listing fee. Order total £23.50.
| Line | Working | Amount |
|---|---|---|
| Listing fee | $0.20 ≈ £0.15 | £0.15 |
| Transaction fee | 6.5% × £23.50 | £1.53 |
| Processing | 4% × £23.50 + £0.20 | £1.14 |
| Regulatory Operating Fee | 0.48% × £23.50 | £0.11 |
| Fees before VAT | £2.93 | |
| VAT on fees | 20% × £2.93 | £0.59 |
| Total Etsy fees | about 15% of the order | £3.52 |
| You receive before your own costs | £23.50 − £3.52 | £19.98 |
If that sale came through Offsite Ads, add 15% × £23.50 = £3.53. Fees before VAT become £6.46, VAT £1.29, total fees £7.75, and you receive £15.75.
If you're VAT-registered and your VAT ID is on Etsy, the £0.59 VAT on fees isn't charged (total fees £2.93). But a VAT-registered seller also owes VAT on the sale itself, so the £20.57 you receive isn't all yours. See the Etsy VAT guide.
Worked example 2: a £10 digital download bought by a UK buyer
Etsy adds 20% VAT to digital items for UK buyers and pays it to HMRC itself (Etsy Help). The buyer pays £12.00, and your fees are based on the £10.00 price.
| Line | Amount |
|---|---|
| Listing fee | £0.15 |
| Transaction fee (6.5% × £10) | £0.65 |
| Processing (4% + £0.20) | £0.60 – £0.68 |
| Regulatory Operating Fee (0.48% × £10) | £0.05 |
| VAT on fees (20%) | £0.29 – £0.31 |
| Total Etsy fees | £1.74 – £1.83 |
| You receive | £8.17 – £8.26 |
Why a range? Etsy says processing is charged on the sale price "including… any applicable sales tax". It doesn't say whether the VAT Etsy itself collects on digital items counts. The low figure charges processing on £10, the high figure on £12. The calculator lets you choose either.
What this page doesn't include
- Etsy Ads (on-Etsy advertising). You set that budget yourself.
- Optional subscriptions. The February 2026 version of Etsy's fees policy (Internet Archive copy) lists Etsy Plus at $10 USD a month. The live version couldn't be loaded to confirm it's unchanged.
- Postage labels bought through Etsy, refunds, chargebacks, and your income tax.
Sources
- Etsy Help: What are the fees and taxes for selling on Etsy?
- Etsy Help: Payment processing fees (UK: 4% + £0.20)
- Etsy Help: Regulatory Operating Fee (UK: 0.48%)
- Etsy Help: How Etsy's Offsite Ads work
- Etsy Help: How VAT is collected on seller fees
- Etsy Help: How VAT works on digital items
- Etsy: Sell on Etsy (UK fee summary)
- GOV.UK: VAT rates
- GOV.UK: When to register for VAT
Related
- Free Etsy UK fee & profit calculator (runs in your browser)
- Etsy VAT for UK sellers: fees and digital downloads
- How to calculate your Etsy profit margin (UK)
FAQ
How much does Etsy take per sale in the UK?
For a normal sale with no Offsite Ads, Etsy's fees come to about 13.2% of the order total plus £0.42. That includes 20% VAT on fees for a seller with no VAT ID. On a £23.50 order that's £3.52. If the sale came from Offsite Ads, it's about 31.2% + £0.42.
Does the Etsy transaction fee apply to postage?
Yes. Etsy charges the 6.5% transaction fee and the 0.48% UK Regulatory Operating Fee on item price plus postage plus gift wrap. Processing (4% + £0.20) is charged on the total sale price, which includes postage.
How much is the Etsy shop set-up fee in the UK?
Etsy doesn't publish the amount. Its help page says the one-time, non-refundable fee varies by location and is shown during shop set-up. Figures on third-party sites aren't confirmed by Etsy.
Is there a monthly fee to sell on Etsy UK?
The standard fees are all per listing or per sale. Etsy Plus is an optional subscription, listed at $10 USD a month in the February 2026 version of the fees policy.
Can I opt out of Offsite Ads?
Yes, while your shop has always made under $10,000 USD in any 365-day period. After that, Offsite Ads are compulsory at 12% of attributed orders. Either way, the fee is capped at $100 USD per order.
Why does Etsy charge me VAT on fees?
Etsy collects VAT on seller fees for UK sellers who haven't added a VAT ID. If you're VAT-registered and add your VAT ID, Etsy doesn't charge it. You get a monthly invoice either way.