Selling on Etsy from the United Kingdom (2026): Fees, Payments, Tax Basics

Last verified 2026-10-25 · Selling by country · Published with AI assistance, sourced from official pages (how we work)

Short answer: The United Kingdom is on Etsy's Etsy Payments fee table. On top of the 6.5% transaction fee and the US$0.20 listing fee, a seller whose bank account is in the United Kingdom pays 4% + 0.20 GBP per order.

Etsy fees for sellers in the United Kingdom

• Listing fee: US$0.20 per listing, each time it is created or renewed (listings last four months or until sold).
• Transaction fee: 6.5% of the item price plus shipping and gift wrap you charge.
• Payment processing: 4% + 0.20 GBP per order, charged on the total sale price including shipping and any sales tax. Etsy says processing fees are subject to VAT where required.
• Currency: With a UK bank account you are paid in pounds. The listing fee is charged in US dollars (US$0.20) and converted. If you list in a currency other than your payment account's currency, Etsy's currency-conversion rules apply; see the "Currency conversion" section of Etsy's fees policy.

Offsite Ads

If a buyer clicks one of Etsy's off-site ads and buys within 30 days, you pay 15% of the order while your shop has always made under US$10,000 in any 365-day period (you may opt out), or 12% once you pass US$10,000 (opting out is no longer possible). The fee on a single order is capped at US$100, and revenue in other currencies is converted to USD to test the threshold. More in Offsite Ads explained.

Worked example in GBP

An item at £25.00 plus £5.00 shipping, no buyer taxes: order total £30.00.

Arithmetic illustration only. Offsite Ads is applied to the full order total as an approximation; check your own statements.

Tax and registration pointers (not tax advice)

We are not accountants. These pointers come from official government pages linked below; rules change and depend on your situation, so confirm with a qualified adviser.

• HMRC's trading allowance lets individuals earn up to £1,000 of gross trading income a year tax-free. Above £1,000 gross, HMRC says you must register for Self Assessment (by 5 October after the tax year ends).
• VAT: you must register when your VAT-taxable turnover goes over £90,000 in a rolling 12-month period, or you expect it to within the next 30 days. Turnover means sales, not profit.
• Gross means before Etsy fees and costs, so a busy shop can cross £1,000 quickly even at low profit.

Next steps

• Run your own numbers in the fee calculator (choose United Kingdom).
• Compare with other countries in Etsy fees by country.
• Learn to price so your margin survives fees.