VAT on Etsy seller fees, by country

Etsy charges VAT on its own fees in most of the world — not on your sale price, on Etsy’s cut. In about twenty countries a valid VAT ID stops the charge. In eight it is charged whatever you do. Etsy publishes the country groups but publishes no rates at all, which is why nobody can answer the actual question. Here are both halves in one table.

Rate for my country Does a VAT ID help me? →

Fee mechanics only. Nothing here is tax advice — whether to register, and whether you can reclaim, is a question for your accountant. Not affiliated with Etsy, Inc.

What is actually being taxed

Etsy’s fees, not your revenueYou sell a $36 order. Etsy takes a listing fee, 6.5% transaction fee, payment processing and — in nine countries — a regulatory operating fee. VAT is then charged on that bundle of fees. A German seller pays 19% on Etsy’s cut, not 19% of $36. This is a fee-on-a-fee, and it is the line that turns a headline “6.5%” into a real number several points higher.

It is separate from VAT on your salesWhatever VAT you owe on what you sell to buyers is a different question with different rules, and Etsy collects some of it itself in some markets. This page is only about the tax Etsy adds to its own invoice to you.

It can often be reclaimed — if you are registeredFor a VAT-registered business this is generally input VAT and may be recoverable on your return, which changes the arithmetic materially. Below a registration threshold you simply absorb it. Which side of that line you should be on is an accountant’s question, not a calculator’s.

Etsy’s two groups, in Etsy’s own words

Read from Etsy’s VAT on seller fees page on 7 September 2026. The page carries no date stamp, which is why we record the day we read it.

Group 1 — a valid VAT ID stops the chargeAustralia, Chile, Egypt, the EU (excluding Ireland), Georgia, India, Kazakhstan, Malaysia, Morocco, New Zealand, Norway, Peru, the Philippines, Singapore, South Korea, Thailand, Türkiye, the UK, Ukraine and the United Arab Emirates. Etsy: “If you added your VAT ID to your Etsy account, you won’t be charged. Instead, you will receive an invoice from Etsy on the first of each month stating that you were not charged VAT on your seller fees.” Note that Ireland is excluded from the EU here — it is in Group 2.

Group 2 — charged regardlessIndonesia, Ireland, Japan, Mexico, Serbia, South Africa, Switzerland and Vietnam. In these countries supplying a tax ID does not stop Etsy charging tax on its fees. If you sell from one of them, this is a permanent line in your cost base and there is no setting that removes it.

Group 3 — Canada, in a section of its ownThe article has a third heading, “VAT for shops based in Canada”, and it names no rate: Etsy says it charges “GST/HST, PST, RST or QST depending on your tax status and the taxing requirements on the underlying goods”. So Canada is named — the number is what is missing. Our calculator applies 5%, the federal GST floor, and labels it a floor rather than your rate; the real answer depends on your province. See Etsy fees in Canada.

Brazil is the only country the article never namesNot in either group, and no section of its own. Etsy publishes nothing about tax on its own fees for a Brazilian shop, so the rate in our table is inference, not something Etsy published — and Brazil is the only one of the 32 where that is true. It is also one of three countries where the money leaves through a Payoneer Payment Account, whose withdrawal and conversion charges Etsy says are additional. Two unpublished numbers sit on the same row, which is why we say so on the row itself.

The rate, by country

Read this before the table. Etsy publishes the country groups above. Etsy does not publish the percentages. The rates below are the national VAT or GST rates that apply to a digital service supplied to a business in that country, taken from national tax schedules — they are our inference about which rate applies, not a figure Etsy printed. We are telling you that plainly because every other page we found presents rates like these as though Etsy published them.

Seller country	Rate applied to Etsy’s fees	Can a VAT ID stop it?	Note
Hungary	27.0%	VAT ID exempts you	Add a valid VAT ID and Etsy stops charging it
Finland	25.5%	VAT ID exempts you	Add a valid VAT ID and Etsy stops charging it
Sweden	25.0%	VAT ID exempts you	Add a valid VAT ID and Etsy stops charging it
Denmark	25.0%	VAT ID exempts you	Add a valid VAT ID and Etsy stops charging it
Norway	25.0%	VAT ID exempts you	Add a valid VAT ID and Etsy stops charging it
Greece	24.0%	VAT ID exempts you	Add a valid VAT ID and Etsy stops charging it
Portugal	23.0%	VAT ID exempts you	Add a valid VAT ID and Etsy stops charging it
Poland	23.0%	VAT ID exempts you	Add a valid VAT ID and Etsy stops charging it
Italy	22.0%	VAT ID exempts you	Add a valid VAT ID and Etsy stops charging it
Spain	21.0%	VAT ID exempts you	Add a valid VAT ID and Etsy stops charging it
Netherlands	21.0%	VAT ID exempts you	Add a valid VAT ID and Etsy stops charging it
Belgium	21.0%	VAT ID exempts you	Add a valid VAT ID and Etsy stops charging it
Czech Republic	21.0%	VAT ID exempts you	Add a valid VAT ID and Etsy stops charging it
Romania	21.0%	VAT ID exempts you	Add a valid VAT ID and Etsy stops charging it
United Kingdom	20.0%	VAT ID exempts you	Add a valid VAT ID and Etsy stops charging it
France	20.0%	VAT ID exempts you	Add a valid VAT ID and Etsy stops charging it
Austria	20.0%	VAT ID exempts you	Add a valid VAT ID and Etsy stops charging it
Bulgaria	20.0%	VAT ID exempts you	Add a valid VAT ID and Etsy stops charging it
Turkey	20.0%	VAT ID exempts you	Add a valid VAT ID and Etsy stops charging it
Germany	19.0%	VAT ID exempts you	Add a valid VAT ID and Etsy stops charging it
India	18.0%	VAT ID exempts you	Add a valid VAT ID and Etsy stops charging it
New Zealand	15.0%	VAT ID exempts you	Add a valid VAT ID and Etsy stops charging it
Australia	10.0%	VAT ID exempts you	Add a valid VAT ID and Etsy stops charging it
Singapore	9.0%	VAT ID exempts you	Add a valid VAT ID and Etsy stops charging it
Ireland	23.0%	Charged either way	Etsy charges it whether or not you hold a VAT ID
Brazil	17.0%	Never named	The only country Etsy’s VAT article does not mention at all — this rate is our inference
Mexico	16.0%	Charged either way	Etsy charges it whether or not you hold a VAT ID
South Africa	15.0%	Charged either way	Etsy charges it whether or not you hold a VAT ID
Japan	10.0%	Charged either way	Etsy charges it whether or not you hold a VAT ID
Switzerland	8.1%	Charged either way	Etsy charges it whether or not you hold a VAT ID
Canada	5.0%	Named, no rate	Etsy gives Canada its own section but publishes no single rate — 5% is the federal GST floor

The only country in our calculator with no tax on Etsy fees is United States — which is a large part of why US sellers see a headline fee load several points below everyone else’s. Same figures as the fee calculator, one dataset, so the two cannot disagree.

The countries where this hurts most

Hungary, 27%. The highest VAT rate in the EU, stacked on top of the highest regulatory operating fee on Etsy’s list (1.97%, new as of 22 June 2026). That makes Hungary the most heavily taxed of the 32 countries we model — but not the most expensive. Türkiye has the highest total fee load of the 32 countries we model: 19.2% of a $36 order against Hungary’s 17.8%, because Türkiye also carries the platform’s dearest payment processing (6.5% + 14 TRY).
Finland, 25.5%; Sweden, Denmark and Norway, 25%. The Nordic block pays a quarter on top of every Etsy fee line.
Ireland, 23% — and no way out. Ireland is the one EU country Etsy places in the charged-regardless group. An Irish seller with a valid VAT number is still charged, where a German seller with one is not.
Türkiye, 20% on top of the most expensive payment processing on the platform. Turkish sellers pay 6.5% + 14 TRY in processing, a 1.67% regulatory operating fee, and then 20% on all of it. A Turkish seller keeps materially less than a US seller on an identical order — and almost no fee calculator models this correctly. Etsy fees in Turkey →
Switzerland, 8.1%. The lowest rate of any country that charges it, but in the charged-regardless group, so there is no VAT ID route out of it.

What to do with this

Find your country in the table and check which group you are in. If you are in Group 1 and VAT-registered, add your VAT ID in Etsy’s settings — the charge stops.
If you are in Group 1 and not registered, price for it. The tax is real and unavoidable at your current status. Whether registering is worth it is a conversation with an accountant, and it usually turns on your total turnover rather than on Etsy.
If you are in Group 2, build it into your margin permanently. There is no setting that removes it.
Run a real order through the calculator and read the “VAT / tax on Etsy fees” line on its own. It is usually larger than sellers expect, because it is charged on the sum of everything above it.

Common questions

Is there VAT on Etsy seller fees?

Yes, in most of the world. Etsy charges VAT or an equivalent sales tax on its own fees — the listing fee, transaction fee, payment processing and regulatory operating fee — not on your sale price. Of the 32 seller countries we model, only the United States has no tax on Etsy fees. This is separate from any VAT you owe on what you sell to buyers.

Does a VAT ID stop Etsy charging VAT on fees?

In about twenty countries, yes. Etsy: "If you added your VAT ID to your Etsy account, you won’t be charged. Instead, you will receive an invoice from Etsy on the first of each month stating that you were not charged VAT on your seller fees." That group covers Australia, the EU excluding Ireland, India, New Zealand, Norway, Singapore, Türkiye, the UK and others. In a second group — Indonesia, Ireland, Japan, Mexico, Serbia, South Africa, Switzerland and Vietnam — Etsy charges the tax regardless of whether you supply an ID.

What rate of VAT does Etsy charge on its fees?

Etsy publishes the country groups but does not publish any percentage rates on that page. The rate applied is the national VAT or GST rate for a digital service in your country — for example 19% in Germany, 20% in the UK and Türkiye, 21% in Spain, 23% in Ireland and Portugal, 25.5% in Finland and 27% in Hungary. We label those as national rates rather than as Etsy figures, because Etsy did not print them.

Why is Ireland treated differently from the rest of the EU?

Because Etsy puts it in the charged-regardless group. Etsy’s VAT page names "the EU (excluding Ireland)" in the group where a valid VAT ID stops the charge, and lists Ireland separately alongside Indonesia, Japan, Mexico, Serbia, South Africa, Switzerland and Vietnam. An Irish seller holding a valid VAT number is still charged; a German seller holding one is not.

Can I reclaim the VAT Etsy charges on its fees?

For a VAT-registered business this is generally input VAT and may be recoverable on your return, which changes your real fee load materially. Below a registration threshold you are not required to register and you absorb the tax. Whether registering is worth it is a question for an accountant and usually turns on your total turnover rather than on Etsy. Nothing on this page is tax advice.

Which countries pay the most tax on Etsy fees?

Hungary at 27% is the highest, and it is stacked on the highest regulatory operating fee on Etsy’s list — 1.97%, new since 22 June 2026 — which makes Hungary the most heavily taxed of the 32 countries we model. It is not the most expensive, though: Türkiye has the highest total fee load of the 32 countries we model — 19.2% of a $36 order against Hungary’s 17.8% — because Türkiye also carries the platform’s dearest payment processing (6.5% + 14 TRY). Finland is next at 25.5%, then Sweden, Denmark and Norway at 25%. The United States is the only country where Etsy states it charges no tax on its own fees; Brazil is the one country Etsy’s VAT article never names at all, so no rate is published for it either.

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