The short answer
A UK Etsy seller pays a listing fee of $0.20 (charged in dollars, so about 15–16p), a 6.5% transaction fee, 4% + £0.20 for payment processing and a regulatory operating fee of 0.48%. Etsy then adds 20% VAT to its seller fees. Offsite Ads, Etsy Ads and currency conversion can add more.
Every fee UK sellers pay
| Fee | Rate | Notes |
|---|---|---|
| Listing fee | $0.20 (about £0.15–£0.16) | Charged per listing and renewal, converted from dollars |
| Transaction fee | 6.5% | On the item price, delivery, gift wrap and personalisation |
| Payment processing | 4% + £0.20 | On the full amount the buyer pays |
| Regulatory operating fee | 0.48% | Raised from 0.32% on 22 June 2026 |
| VAT on Etsy fees | 20% | Added to seller fees; VAT-registered sellers can usually reclaim it |
| Offsite Ads | 15%, or 12% for larger shops | Only on sales from Etsy's ads on other sites |
| Currency conversion | 2.5% | If your listings aren't priced in pounds |
Worked example: a £25 item with £4 delivery
The buyer pays £29.
| Fee | Amount |
|---|---|
| Listing fee | £0.16 |
| Transaction fee (6.5% of £29) | £1.89 |
| Payment processing (4% of £29 + £0.20) | £1.36 |
| Regulatory operating fee (0.48% of £29) | £0.14 |
| Fees before VAT | £3.54 (12.2% of the sale) |
VAT on Etsy's fees adds up to about 71p more on this order, taking the total to around £4.25, or 14.7% of the sale. If you're VAT-registered, you can usually reclaim that VAT on your return. Your monthly Etsy statement shows the exact VAT charged.
Why UK fees are higher than US fees
UK sellers pay one percentage point more for processing (4% against 3% in the US), plus the regulatory operating fee and VAT on fees, which US shops don't pay. On the same order, a UK shop typically gives Etsy two to four percentage points more of the sale than a US shop.
Delivery charges and Etsy fees
The transaction fee, processing fee and regulatory operating fee are all charged on delivery as well as the item price. Offering free delivery and raising the item price by the same amount leaves your fees unchanged; what changes is how buyers see the price. Our guide to free vs charged shipping covers the trade-offs.
Offsite Ads for UK shops
Offsite Ads work the same way for UK sellers: 15% of an attributed order, or 12% once your shop has made over $10,000 in the past 12 months. The threshold is measured in US dollars, so a strong exchange rate can push a UK shop over it sooner than expected. Below the threshold you can opt out in your shop settings.
Do UK Etsy sellers need to register for VAT?
Only once your VAT-taxable turnover passes the UK registration threshold, which is £90,000 over a rolling 12 months. Below that, you don't charge VAT on your sales, but you still pay the VAT Etsy adds to its fees and can't reclaim it. Speak to an accountant if you're getting close to the threshold.
Using the calculator as a UK seller
- Choose £ GBP in the currency menu at the top of the page.
- In the Etsy fees, set the listing fee to 0.16, payment processing to 4% and the processing fixed fee to 0.20.
- Add the regulatory operating fee to the transaction fee: 6.98% instead of 6.5%.
- Press Save defaults so the calculator remembers your UK settings next time.
Set up the Etsy calculator with UK rates and see your profit in pounds.
Open the Etsy fee calculatorFrequently asked questions
What are Etsy fees in the UK?
A $0.20 listing fee (about 15–16p), a 6.5% transaction fee, 4% + £0.20 payment processing and a 0.48% regulatory operating fee, plus 20% VAT on Etsy's fees.
What is the Etsy regulatory operating fee in the UK?
A percentage of each order that Etsy charges UK sellers to cover the cost of UK regulations. It rose from 0.32% to 0.48% on 22 June 2026.
Can I reclaim VAT on Etsy fees?
If you're VAT-registered, you can usually reclaim the VAT Etsy charges on its fees through your VAT return. If you're not registered, it's a cost.