Etsy sellers across the world pay similar fees but face different taxes and rates.
If you sell from the UK, Australia, or the US, your total costs vary by law and payment setup.
This guide breaks down each country’s structure, explains how fees are applied, and shows how to calculate your exact earnings.
Understanding Etsy’s Global Fee System
Etsy uses a unified framework for seller charges.
The same core types of fees apply in every region, but the details shift by currency and tax law.
Every seller pays:
- Listing fees: $0.20 USD per listing.
- Transaction fees: A percentage of the item’s sale price, including shipping.
- Payment processing fees: A fixed charge plus a percentage, based on your bank’s country.
- Currency conversion fees: Charged if your shop currency differs from your payment currency.
- Tax or VAT on Etsy fees: Added depending on local regulations.
These categories rarely change, but the exact rate and calculation depend on where you’re located.
Etsy Fees in the United States
The US has one of the simplest fee systems on Etsy.
Listing and Transaction Fees
You pay $0.20 per listing and a 5% transaction fee on every completed order.
If an item sells for $50, your transaction fee is $2.50.
The listing fee applies whether or not the item sells.
Payment Processing Fees
Etsy Payments charges 3% + $0.25 per order for payment handling.
This covers credit card processing, refunds, and currency settlements.
Example:
A $50 sale = $2.50 transaction fee + $1.75 processing fee = $4.25 total Etsy fees.
Taxes and Reporting
Etsy collects and remits state sales tax automatically where required.
You’re still responsible for reporting income on your tax return.
Summary
For US sellers, your effective cost is usually 8–10% of the total sale price.
No VAT or GST applies to Etsy’s own service fees.
Etsy Fees in the United Kingdom
The UK follows Etsy’s global fee model but adds VAT and different processing costs.
Listing and Transaction Fees
Your listing fee is $0.20 USD, converted to GBP at Etsy’s exchange rate.
You also pay a 6.5% transaction fee on the total sale price, including shipping.
Payment Processing Fees
Etsy Payments charges 4% + £0.20 per transaction.
The percentage applies to the item price plus shipping and tax if collected.
Example:
A £40 sale = £2.60 transaction fee + £1.80 processing fee = £4.40 total.
VAT on Etsy Fees
Etsy adds 20% VAT to all its service fees for UK sellers.
You’ll see this as a separate line in your monthly statement.
If you’re VAT-registered, you can reclaim this VAT as input tax when filing returns.
VAT on Sales
For UK-to-UK sales, you manage VAT collection.
For UK-to-EU sales, Etsy may collect and remit VAT at checkout depending on the buyer’s country and order value.
Summary
The UK’s extra VAT layer means your total cost can reach 10–12%.
Always include this in your pricing to maintain margin.
Etsy Fees in Australia
Australia mirrors Etsy’s standard structure but includes GST on all fees.
Listing and Transaction Fees
You pay $0.20 USD per listing, converted to AUD.
The transaction fee is 6.5% of the total order value.
Payment Processing Fees
Australian sellers pay 3% + AUD $0.25 per sale.
This applies automatically to each Etsy Payments transaction.
Example:
A AUD $60 sale = $3.90 transaction fee + $2.05 processing fee = $5.95 total.
GST on Etsy Fees
Etsy charges 10% GST on all its fees to Australian sellers.
You can usually claim this GST back if your business is registered.
Currency Conversion Fees
If your shop currency and payment currency differ, Etsy applies a 2.5% conversion fee.
To avoid this, keep your shop and bank account in the same currency.
Summary
Expect your total cost to fall between 9% and 11% of the order value once GST is included.
Comparing the Three Countries
| Fee Type | United States | United Kingdom | Australia |
|---|---|---|---|
| Listing Fee | $0.20 USD | $0.20 USD (converted) | $0.20 USD (converted) |
| Transaction Fee | 5% | 6.5% | 6.5% |
| Processing Fee | 3% + $0.25 | 4% + £0.20 | 3% + AUD $0.25 |
| VAT / GST on Etsy Fees | None | 20% VAT | 10% GST |
| Currency Conversion | 2.5% (if applicable) | 2.5% (if applicable) | 2.5% (if applicable) |
The difference lies mostly in taxes and payment processing.
The US model is the most straightforward, while the UK and Australia add VAT or GST on top.
Sample Fee Calculations
UK Seller Example
- Item price: £30
- Shipping: £3
- Transaction fee: £2.15 (6.5% of £33)
- Processing fee: £1.52 (4% + £0.20)
- VAT on fees: £0.73 (20% of £3.67)
- Total Etsy cost: £4.40
- Net earnings: £28.60
US Seller Example
- Item price: $40
- Shipping: $5
- Transaction fee: $2.25 (5% of $45)
- Processing fee: $1.60 (3% + $0.25)
- Total Etsy cost: $3.85
- Net earnings: $41.15
Australian Seller Example
- Item price: AUD $50
- Shipping: AUD $10
- Transaction fee: AUD $3.90 (6.5% of $60)
- Processing fee: AUD $2.05
- GST on fees: AUD $0.59
- Total Etsy cost: AUD $6.54
- Net earnings: AUD $53.46
Calculating these manually helps you understand margins, but it’s easier with an automated tool.
👉 Check your country’s fees instantly with our Etsy Fee Calculator.
Managing International Etsy Fees
1. Match Shop and Bank Currencies
Keep your shop and payment account in the same currency.
It removes conversion fees and reduces exchange rate risk.
2. Review Statements Monthly
Etsy’s monthly statements show every fee, tax, and adjustment.
Download them regularly and reconcile them with your accounting records.
3. Adjust Pricing for Total Costs
Include all Etsy fees in your pricing model.
If your average cost per sale is 10%, raise your price slightly to maintain margin.
4. Register for Local Taxes
If you cross your VAT or GST registration threshold, register with your local tax authority.
Registration lets you reclaim VAT or GST on Etsy service charges.
5. Use a Fee Calculator
Manual math invites mistakes.
A dedicated calculator adjusts for your location, currency, and transaction type in seconds.
Try the Etsy Fee Calculator to estimate profit before listing any item.
Practical Tips for Global Sellers
Use shop analytics wisely.
Compare revenue by country and note where taxes cut deeper into profits.
Track exchange rates.
Fluctuating USD rates can shift your real earnings, especially in GBP or AUD.
Bundle shipping strategically.
Since transaction fees include shipping, absorbing part of the cost can reduce buyer friction.
Stay updated on Etsy policy changes.
Etsy occasionally adjusts processing rates by country.
Check the help center each quarter to confirm current rates.
Build a margin cushion.
Always leave 2–3% room in your pricing for small rate or tax adjustments.
Why Regional Differences Matter
Etsy’s global reach gives sellers access to buyers worldwide, but it also means handling taxes and exchange rules.
A small difference—like 20% VAT on service fees—can affect profitability over hundreds of orders.
Understanding your region’s structure helps you price accurately and stay compliant.
It also helps you plan expansion into other markets without hidden costs.
For example, if you sell from Australia but ship mainly to US buyers, aligning your currency to USD might save conversion fees.
If you sell handmade goods from the UK, claiming back VAT on fees can add measurable savings each month.
Key Takeaways
- Etsy’s fee structure is global, but taxes and payment rates differ by country.
- US sellers face the simplest system, without VAT or GST.
- UK sellers pay 20% VAT on Etsy’s fees and sometimes on EU sales.
- Australian sellers pay 10% GST on Etsy’s service charges.
- Currency conversion adds up if your shop and payment account use different currencies.
- Regularly review statements, adjust pricing, and use automated tools for accuracy.
Final Note
Etsy’s regional fees may seem complex at first, but they follow consistent rules once you know the structure.
A few settings—currency, tax registration, and pricing—make the biggest difference to your profit.
👉 Check your country’s fees instantly with our Etsy Fee Calculator to see your exact costs before you list your next product.
Understanding these details helps you sell confidently, plan your pricing better, and keep your creative business sustainable.
