Etsy's fees for UK sellers changed twice in a way most fee calculators miss: the regulatory operating fee rose to 0.48% on 22 June 2026, and Etsy adds VAT to its fees unless you've given it a VAT number. Here is the full list and what it costs, with the Etsy UK fee calculator.
Every Etsy fee for a UK shop
- Listing fee US$0.20 (about £0.15 at the 26 Oct 2026 ECB rate).
- Transaction fee 6.5% of item price + postage + gift wrap.
- Payment processing 4% + £0.20 per order (UK bank account).
- Regulatory operating fee 0.48% of the order total (0.32% until 21 June 2026).
- VAT at 20% on those fees if you haven't added a VAT number.
- Offsite Ads 15% or 12% on attributed orders, max US$100 per order.
Who pays VAT on Etsy fees
Etsy charges VAT on seller fees for UK sellers who haven't submitted a VAT number, and on Etsy Payments processing fees where required. Add a valid VAT number in your account and Etsy stops charging it; your monthly invoice then states that no VAT was charged. For a seller below the VAT threshold, this VAT is simply a cost — on a £25 order it adds £0.71.
What it costs on real orders
| Order | Etsy fees | % of order | Profit |
|---|---|---|---|
| £12.00 + postage | £2.40 | 16.0% | £5.90 |
| £25.00 + postage | £4.25 | 14.7% | £13.15 |
| £60.00 + postage | £8.99 | 13.8% | £31.51 |
Not VAT-registered, no Offsite Ads; product costs £4 / £8 / £20 and postage labels £2.70 / £3.60 / £4.50 against £3 / £4 / £5 charged. Smaller orders lose a bigger share to the fixed £0.20 processing fee and the listing fee.
How to price for it
- Budget roughly 12–14% of the order total for Etsy fees, more on cheap items.
- Build Offsite Ads into the price of bestsellers: a 15% fee plus VAT on it can halve the margin on that order.
- If you become VAT-registered, add your VAT number to Etsy promptly so fees stop carrying VAT.
Official sources
Rates verified:
- 01Etsy Fee Basics — Etsy Help (en-GB)
- 02What are Payment Processing Fees for Selling on Etsy? (United Kingdom: 4% + 0.20 GBP) — Etsy Help
- 03What is a Regulatory Operating Fee? (UK 0.48%) — Etsy Help
- 04Regulatory Operating Fee updates for some markets (UK 0.32% → 0.48% from 22 Jun 2026) — Etsy Community announcement
- 05How VAT Is Collected on Seller Fees — Etsy Help (en-GB)
- 06How Etsy's Offsite Ads Work (15% / 12%, max US$100 per order) — Etsy Help (en-GB)
- 07Fees & Payments Policy — Etsy UK
- 08VAT rates (standard rate 20%) — GOV.UK
- 09Euro foreign exchange reference rates, 26 Oct 2026 (USD/GBP used to convert US$ amounts) — European Central Bank
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