What are Etsy fees in the UK in 2026?

Etsy UK charges a listing fee of about £0.16, a 6.5% transaction fee on the item plus postage, and payment processing of around 4% + £0.20. VAT at 20% is added to Etsy's seller fees, and Offsite Ads add 12% to 15% on ad-driven sales.

How is the Etsy transaction fee calculated?

The 6.5% transaction fee applies to the item price plus the postage and any gift wrap you charge. A £40 item with £5 postage has a transaction fee of 45 x 0.065 = £2.93.

Does Etsy UK charge VAT on fees?

Yes. Etsy adds 20% VAT to seller fees for UK sellers. If you are VAT registered you can usually reclaim it through your VAT return.

What is the Etsy Offsite Ads fee?

If a buyer clicks an Etsy-placed ad and buys within 30 days, Etsy charges 15% of the order, or 12% for shops over a set revenue threshold. It only applies to ad-driven sales and is capped.

Home / UK Seller Fees / Etsy Fee

UK Seller & Marketplace Fees

UK Etsy Fee Calculator

Add up your Etsy listing fee, 6.5% transaction fee, UK payment processing, VAT and optional Offsite Ads, then see your real profit in pounds. Updated for 2026 UK rates.

Total Etsy fees (inc VAT)

£6.30

Listing fee—

Transaction fee (6.5%)—

Payment processing—

Offsite Ads fee—

VAT on fees—

Net proceeds after fees—

Profit (margin)—

Where your sale goes

The buyer's payment split into your costs, Etsy's fees and your profit.

How Etsy UK fees work

Every Etsy sale carries several small fees. There's a £0.16 listing fee per item, a 6.5% transaction fee on the item price plus postage and gift wrap, and payment processing of about 4% + £0.20 in the UK. VAT at 20% is added to Etsy's seller fees (reclaimable if you're VAT registered). If your sale came through an Etsy-placed Offsite Ad, add a 15% advertising fee (12% for larger shops).

Because the transaction and processing fees both apply to postage, pricing postage too low quietly eats your margin. This tool totals every fee, VAT included.

The formula

transaction fee = (item + postage) × 6.5%
processing fee = (item + postage) × 4% + £0.20
VAT on fees = (listing + transaction + processing + ads) × 20%
profit = item + postage − item cost − postage cost − Etsy fees

Worked example

A £40 item with £5 postage (no offsite ad): transaction = 45 × 0.065 = £2.93; processing = 45 × 0.04 + 0.20 = £2.00; listing = £0.16; VAT on £5.09 = £1.02; total fees = £6.11. If the item cost £12 and postage £4, profit = 45 − 12 − 4 − 6.11 = £22.89.

2026 Etsy UK fees

Fee	Rate
Listing fee	£0.16 per listing
Transaction fee	6.5% of item + postage
Payment processing (UK)	4% + £0.20
VAT on seller fees	20%
Offsite Ads (standard)	15% of order

These are typical UK figures for planning. Etsy's exact processing rate and any subscription can vary; confirm in your Shop Manager.

Frequently asked questions

What are Etsy fees in the UK?

A £0.16 listing fee, 6.5% transaction fee, ~4% + £0.20 processing, plus 20% VAT and any offsite ads.

Does Etsy charge VAT on fees?

Yes, 20% VAT on seller fees, reclaimable if VAT registered.

Does Etsy charge fees on postage?

Yes, both the transaction and processing fees apply to the postage you charge.

Is the Offsite Ads fee always charged?

No, only when a buyer reaches your listing through an Etsy-placed ad and buys within 30 days.

How do I keep more Etsy profit?

Price postage to cover its cost and fees, and factor the ~10.5% combined transaction plus processing plus VAT into your price.