Etsy UK Fee Calculator 2025 - Calculate Etsy Seller Fees in GBP
Free Etsy UK fee calculator. Calculate fees including 6.5% transaction, 4% + £0.20 payment processing, 0.32% regulatory fee, plus 20% VAT on seller fees.
Calculate Your Etsy UK Fees
The price of your item (excluding shipping)
Shipping charged to buyer (fees apply!)
Your cost to acquire/make the item
Packaging, materials, etc.
$0.20 per listing renewal
You Keep
£42.38
after 15.2% in fees
Total Fees
£7.62
on £55.00 order
Net Profit
£27.38
54.76% margin
Fee Breakdown — Etsy United Kingdom
Profit Calculation
💡 United Kingdom Seller Notes
- • Payment processing: 4% + £0.20 per transaction
- • Regulatory Operating Fee: 0.32% on order total
- • 20% VAT applies to seller fees
- • Listing fee charged in USD (~$0.20 ≈ £0.16)
📢 About Offsite Ads
Etsy may show your listings on Google, Facebook, and other sites. If a buyer clicks and purchases within 30 days, a 15% fee applies. Sellers under $10,000/year can opt out.
Etsy UK Fee Structure 2025
UK sellers pay higher payment processing fees plus VAT on all Etsy fees:
| Fee Type | Rate | Applied To |
|---|---|---|
| Transaction Fee | 6.5% | Item price + shipping + gift wrap |
| Payment Processing | 4% + £0.20 | Total order amount |
| Listing Fee | ~£0.16 ($0.20 USD) | Per listing (expires after 4 months) |
| Regulatory Fee | 0.32% | Order total |
| VAT on Fees | 20% | All above fees |
| Offsite Ads | 15% / 12% | Only if sale came from Etsy ads |
Example: £50 Sale with £5 Shipping
| Fee | Calculation | Amount |
|---|---|---|
| Transaction Fee | (£50 + £5) × 6.5% | £3.58 |
| Payment Processing | (£50 + £5) × 4% + £0.20 | £2.40 |
| Listing Fee | Per listing (in USD) | ~£0.16 |
| Regulatory Fee | (£50 + £5) × 0.32% | £0.18 |
| Subtotal Fees | £6.32 | |
| VAT on Fees | £6.32 × 20% | £1.26 |
| Total Fees (inc VAT) | £7.58 | |
| You Keep | £55 - £7.58 | £47.42 |
Effective fee rate: 13.8% of the £55 order total (including VAT on fees).
UK vs US Etsy Fees Comparison
| Fee Type | UK | US | Difference |
|---|---|---|---|
| Payment Processing | 4% + £0.20 | 3% + $0.25 | UK pays +1% |
| Regulatory Fee | 0.32% | None | UK pays extra |
| VAT on Fees | 20% | None | UK pays extra |
| Effective Rate | ~13.8% | ~10% | UK pays ~3.8% more |
Understanding VAT on Etsy Seller Fees
HMRC requires Etsy to charge 20% VAT on seller service fees. This includes:
- ✅ Transaction fees (6.5%)
- ✅ Payment processing fees
- ✅ Listing fees ($0.20)
- ✅ Regulatory operating fees
- ✅ Offsite Ads fees (if applicable)
VAT-registered sellers: You can reclaim this VAT on your VAT return as an input tax.
The UK Regulatory Operating Fee Explained
Etsy introduced the 0.32% Regulatory Operating Fee for UK sellers to cover costs associated with:
- UK-specific consumer protection regulations
- Digital Services Tax compliance
- GDPR and data protection requirements
- Local payment regulations
While small (£0.18 on a £55 order), it adds up for high-volume sellers.
Tips for UK Etsy Sellers
- Account for VAT when pricing - Remember that 20% VAT applies to your fees, not just the order
- Register for VAT - If selling over £85,000/year, you must register and can reclaim VAT on fees
- Consider listing prices - Price in whole pounds for cleaner presentation
- International shipping - Payment processing is 4% for all UK orders (no domestic discount)
- Track all fees - Use accounting software that handles VAT properly
Compare Etsy UK with Other Platforms
| Platform | Seller Fees | Best For |
|---|---|---|
| Etsy UK | ~13.8% (inc VAT) | Handmade, vintage, crafts |
| eBay UK | 0% (private) | Casual selling, general items |
| Depop | ~13% + VAT | Fashion, streetwear |
| Vinted | Free (buyer pays) | Fashion, secondhand |
| Amazon UK | 7-20% + subscription | Volume sellers |
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Frequently Asked Questions
What are Etsy UK seller fees in 2025?
Do UK Etsy sellers pay VAT on fees?
What is the Etsy regulatory operating fee for UK?
How much does Etsy take from a £50 sale in the UK?
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