Etsy Fee Calculator UK 2026: Fees, 0.48% Regulatory Fee & VAT

How Etsy fees work for UK sellers

A UK shop paid through Etsy Payments to a UK bank account pays these fees on a normal sale:

Listing fee: US$0.20 per listing, charged again for each extra item sold from a multi-quantity listing and when a sold listing auto-renews. Etsy bills it in US dollars; the calculator converts it to £0.15 at the ECB reference rate of 26 October 2026 (1 USD = 0.7492 GBP). Edit it under "Fee rates used" if your statement differs.
Transaction fee: 6.5% of the order total in your listing currency — item price plus the postage and gift wrap you charge.
Payment processing fee: 4% + £0.20 per order for a UK bank account, on the total sale price including postage and any sales tax Etsy collects.
Regulatory operating fee: 0.48% of the order total (item price, postage, gift wrap and personalisation) since 22 June 2026, up from 0.32%. Etsy charges it in some markets, including the UK, to cover the cost of complying with local regulation.
Offsite Ads fee (only on orders from an Offsite Ad): 15% of the order total, or 12% once your shop has made US$10,000 in any 365 days, never more than US$100 per order (£74.92 at the same rate).

Etsy Ads, postage labels bought on Etsy and Etsy Plus are separate. Add them under "Other costs".

VAT on Etsy fees

The UK is one of the countries where Etsy charges VAT on its seller fees. Etsy's help article says that if you haven't added a VAT number, VAT is charged on your seller fees, and on Etsy Payments processing fees where required; if you add a valid VAT number, Etsy doesn't charge VAT and your monthly invoice shows no VAT was charged. The calculator uses the UK standard rate of 20% on all Etsy fees in the first option of "Your VAT status on Etsy" and 0% in the second.

If you are VAT-registered you also owe VAT on your own sales. Enter 16.67 under "VAT you owe on your sales" to take the VAT out of a VAT-inclusive price. How you account for VAT on Etsy's fees once Etsy stops charging it is a question for your accountant or HMRC guidance.

Worked examples

Example 1: a £25 item with £4 postage, not VAT-registered

Product cost £8, a £3.60 postage label bought elsewhere.

Listing fee (US$0.20 converted)	−£0.15
Transaction fee (6.5%)	−£1.89
Payment processing (4%)	−£1.16
Payment processing (flat)	−£0.20
Regulatory operating fee (0.48%)	−£0.14
VAT on Etsy fees (20%)	−£0.71
Total fees	£4.25
Payout	£21.15

Etsy's fees before VAT come to £3.54; 20% VAT adds £0.71. You keep £21.15, and profit after cost and postage is £13.15 (52.6% of the item price). The global Etsy calculator, which leaves out the regulatory fee and VAT, would show £3.25 in fees before the listing fee.

Example 2: the same order, VAT-registered with a VAT number on Etsy

No VAT on fees, so fees fall to £3.54. But the £25 price now contains £4.17 of VAT you owe HMRC, so profit is £9.69.

Example 3: the same order from an Offsite Ad

Listing fee (US$0.20 converted)	−£0.15
Transaction fee (6.5%)	−£1.89
Payment processing (4%)	−£1.16
Payment processing (flat)	−£0.20
Regulatory operating fee (0.48%)	−£0.14
Offsite Ads fee (15%)	−£4.35
VAT on Etsy fees (20%)	−£1.58
Total fees	£9.47
Payout	£15.93

The 15% Offsite Ads fee (£4.35) also attracts VAT, so fees jump to £9.47 and profit to £7.93.

Example 4: an £800 order from an Offsite Ad — the US$100 cap

15% would be £120.00; the fee is capped at £74.92 (US$100). Total fees £195.73.

What the calculator assumes

UK shop, UK bank account, listing in GBP. If you list in another currency Etsy adds a 2.5% currency conversion fee — add it under "Other costs".
US-dollar amounts (listing fee and the Offsite Ads cap) are converted at the ECB reference rate of 26 October 2026. Etsy converts at its own rate on the day.
VAT at 20%. Etsy's article says it charges the applicable VAT; we use the UK standard rate.
One listing fee per item sold. Etsy charges US$0.20 at publication and again on each renewal and multi-quantity sale.

Pricing tips

Plan for about 12–14% of the order total in Etsy fees on a typical £20–£50 order when you're not VAT-registered, before any Offsite Ads.
Postage is charged fees too. Transaction, processing and regulatory fees all apply to the postage you charge.
Price Offsite Ads into your margin. Once your shop passes US$10,000 in 365 days, you can't opt out.
Refunds return the processing fee proportionally. Etsy credits it against the refunded amount.

Selling from another country? Use the global Etsy fee calculator with payment processing for 60+ bank countries.

Frequently asked questions

What are Etsy's fees for UK sellers in 2026?

A US$0.20 listing fee (about £0.15), a 6.5% transaction fee on item price plus postage and gift wrap, payment processing of 4% + £0.20 per order, a 0.48% regulatory operating fee since 22 June 2026, and 20% VAT on those fees if you haven't added a UK VAT number. Offsite Ads add 15% or 12% on orders they bring in, capped at US$100.

What is Etsy's regulatory operating fee in the UK?

0.48% of the order total — item price, postage, gift wrap and personalisation — since 22 June 2026. It was 0.32% before.

Does Etsy charge VAT on fees in the UK?

Yes, unless you add a valid VAT number in your Etsy account. Then Etsy stops charging VAT on its fees and your monthly invoice shows no VAT charged.

Is the transaction fee charged on postage?

Yes. The 6.5% applies to the item price plus the postage and gift wrap you charge.

How much is the Etsy listing fee in pounds?

Etsy bills US$0.20, so the pound amount moves with the exchange rate. At the ECB rate on 26 October 2026 it was £0.15.

Can I opt out of Offsite Ads?

Only while your shop has always made under US$10,000 in any 365 days. After that, Offsite Ads are mandatory and the fee is 12%.

Official sources

Rates verified: 26 October 2026

Spotted a rate that looks wrong? Report it on GitHub and we'll re-check it against the official page.

Etsy Fee Calculator UK

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