Etsy Fees Outside the US (2026): UK and Canada, with VAT and the Regulatory Fee

By the Profitvana Editorial Team · Updated November 2026

Etsy's listing fee ($0.20) and transaction fee (6.5%) are global, but what a seller outside the United States actually pays differs in three ways: payment processing is priced per country (4% + £0.20 in the UK, 3% + C$0.25 in Canada), sellers in several countries pay a regulatory operating fee that Etsy raised again in June 2026, and in the UK and EU VAT is charged on every Etsy fee. The two markets we have verified are below.

The three things that make Etsy cost more abroad

Processing is local. Etsy Payments charges 4% + £0.20 in the UK, 3% + C$0.25 domestic and 4% international in Canada, 4% + €0.30 in Germany, against 3% + $0.25 in the US.

The regulatory operating fee. Introduced in July 2021 for sellers in the UK, France, Italy, Spain and Turkey to pass on digital-services taxes, extended to India and Vietnam in 2024, and raised on 22 June 2026 to 0.48% in the UK, 1.14% in France, 0.80% in Italy and 0.88% in Spain, with Hungary added at 1.97%. It is charged on item plus shipping. Canada is at 0.50%.

VAT on fees. In the UK and the EU, Etsy adds VAT to its fees for sellers who have not supplied a VAT number. A UK seller below the registration threshold pays 20% on top of every listing, transaction, processing and advertising fee and cannot reclaim it, which turns a nominal 10.5% all-in cost into about 12.6%.

Currency conversion adds 2.5% when the listing currency differs from the payment-account currency, which is why most non-US sellers list in their own currency.

Countries covered on this page

Canada · United Kingdom

Etsy fees in Canada

Etsy is a top pick for Canadian craft and digital sellers, but two costs catch them out: Etsy bills in USD by default (a hidden 2.5% conversion every sale) and Canadian GST/HST applies on top of every Etsy fee. Here is the real 2026 picture.

The base fees apply in USD. Etsy's listing fee ($0.20), transaction fee (6.5%), and payment processing all bill in USD by default for Canadian sellers — even if your shop currency is CAD. When Etsy pays you, it converts at its rate with a 2.5% conversion fee on top.

That 2.5% applies on every sale, not just the fees — it is taken from your gross revenue before payout. Across a busy month, it is one of the larger silent costs on Canadian Etsy.

Canadian payment processing on Etsy Payments. Canadian sellers using Etsy Payments pay 3% + C$0.25 per order on the gross amount (item + shipping). On a C$50 sale, processing is C$1.75 — broadly similar to the US rate.

Combined with the 6.5% transaction fee, Etsy's standard cut on a C$50 order is about C$5.00 — roughly 10% of gross — before currency conversion and tax.

GST / HST on Etsy fees. Etsy charges Canadian GST/HST on its fees according to your province: 5% GST in AB/BC/MB/QC/SK/NT/NU/YT, 13% HST in ON, 15% HST in NS/NB/NL/PE. The tax is added on top of every fee Etsy bills you.

If you are GST/HST-registered, you reclaim it as an input tax credit. Below the C$30,000 small-supplier threshold, the tax is a permanent extra cost on every Etsy fee — and it stacks on top of the 2.5% currency conversion. That is why many small Canadian Etsy shops end up with an effective Etsy take of 14–16%, not the headline 10–11%.

Switch your shop currency to CAD. In Settings → Finances, you can switch your shop currency to CAD. Foreign buyers still see localised prices, Etsy stops billing in USD, and the 2.5% conversion on every sale disappears.

This is the single biggest one-click saving for any Canadian Etsy seller. Plenty of long-running shops have never changed it and are paying 2.5% extra every sale by default.

Offsite Ads: same as US (12% / 15%). If a buyer reaches you via Etsy's Offsite Ads (Google, Facebook, Instagram, Bing ads run by Etsy), you pay 15% of that sale as an ads fee (or 12% if you have made over US$10K in the past year). The fee is on top of regular Etsy fees.

Smaller shops are auto-enrolled and have to opt out; once you cross US$10K in trailing 12-month sales, opting out is no longer possible.

The real CAD take-home on a C$50 sale (ON seller). Transaction (6.5%): C$3.25. Processing: C$1.75. Listing fee (one-time): C$0.27. Subtotal: C$5.27. HST 13% on those fees: C$0.69. Total Etsy cost: C$5.96. That is about 11.9% on a single sale — and you keep C$44.04 before your own product and shipping costs.

Switch your shop currency away from USD and the math gets cleaner. Stay on USD and add another 2.5% on top of everything.

Source: Etsy fees (official). Last reviewed August 2026.

Etsy fees in United Kingdom

Etsy is one of the cheapest places for UK sellers to start, but the headline 6.5% fee misses three things every UK seller actually pays: payment processing, VAT on every Etsy fee, and a small regulatory operating fee. Here is the real 2026 number.

The base UK fee structure. Etsy charges UK sellers the same core fees as US sellers, just billed through Etsy Ireland Ltd: a $0.20 listing fee per item (converted to GBP at Etsy's rate, roughly £0.16), a 6.5% transaction fee on the item price plus shipping, and payment processing on top.

On a £25 sale with £4 shipping, the transaction fee is 6.5% × £29 = £1.89. The listing fee was paid up front.

UK payment processing. UK sellers using Etsy Payments pay 4% + £0.20 per order on the gross amount. That is materially higher than the US's 3% + $0.25 because UK processing is bundled differently.

On the same £29 order, processing is 4% × £29 + £0.20 = £1.36. Combined with the transaction fee, Etsy has already taken £3.25 — about 11.2% of the gross — before you account for VAT.

VAT on every Etsy fee (the big one). UK VAT at 20% applies to every fee Etsy charges you: listing, transaction, processing, ads, even the regulatory fee below. So that £3.25 in fees actually becomes £3.90 once VAT is added.

If you are VAT-registered, you reclaim the 20% on your quarterly return. If you are below the £85,000 VAT threshold (most small Etsy sellers), the VAT is a real extra cost — about a fifth on top of every Etsy bill. Factor it into pricing.

The regulatory operating fee. Etsy charges UK sellers an additional regulatory operating fee — currently around 0.32% of each sale (item + shipping) — to cover the cost of UK marketplace regulations and digital-services taxes.

It is small per sale (about 9p on a £29 order) but adds up across a busy month. It is also subject to VAT for UK sellers, like the other fees.

Currency: price in GBP, not USD. Many UK sellers list in USD because the Etsy onboarding suggests it. That triggers a 2.5% currency conversion fee on every sale when funds settle in GBP — pure waste for a UK shop selling to UK customers.

Switch your shop currency to GBP in Settings → Finances. Foreign buyers still see localised prices, and you stop bleeding 2.5% on every UK sale.

What the real Etsy UK take-home looks like. On a £29 gross sale (£25 item + £4 shipping), a non-VAT-registered UK seller actually pays: £1.89 transaction + £1.36 processing + £0.09 regulatory + 20% VAT = about £4.00 in Etsy fees, or 13.8% of gross. Plus your item cost and your shipping label.

Plug your own numbers into the Etsy fee calculator below — set the same totals on the simple US model and add roughly 20% on top, that is your real UK Etsy cost.

Source: Etsy fees (official UK). Last reviewed August 2026.

How to use this page

Find your country below and use the Etsy fee calculator with your local processing rate. For every change to Etsy's fees since 2017, including the regulatory fee increases, see the Etsy fee history.

Frequently asked questions

Does Etsy charge VAT on its fees?

In the UK and the EU, yes, unless the seller has supplied a valid VAT number. The VAT is charged on the fee, not on the sale, and is reclaimable only by VAT-registered sellers.

What is Etsy's regulatory operating fee?

A percentage of item plus shipping that Etsy adds for sellers in countries with digital-services taxes. Since 22 June 2026 it is 0.48% in the UK, 1.14% in France, 0.80% in Italy, 0.88% in Spain, 1.67% in Türkiye, 0.50% in Canada and 1.97% in Hungary. US sellers do not pay it.