Etsy fees in the UK: what you really pay in 2026
UK sellers pay higher payment processing than US sellers, a regulatory fee that rose in June 2026, and, unless you're VAT-registered, 20% VAT on top of Etsy's fees.
The fees, in pounds
| Fee | Rate | Charged on |
|---|---|---|
| Listing fee | US$0.20 (about £0.16) | Each listing, renewal and sale |
| Transaction fee | 6.5% | Item price plus postage |
| Payment processing | 4% + £0.20 | The full order total |
| Regulatory operating fee | 0.48% | Item price plus postage (up from 0.32% on 22 June 2026) |
| VAT on fees | 20% | Etsy's fees, if you're not VAT-registered |
The VAT part most guides skip
Etsy adds VAT to its seller fees for UK sellers who haven't given it a VAT number. If you're under the VAT registration threshold, which most small shops are, you can't reclaim that VAT. In practice every Etsy fee costs you 20% more than the headline rate.
If you are VAT-registered and have added your VAT number in Etsy, Etsy doesn't charge VAT on fees. You account for it on your VAT return instead, which usually cancels out.
Worked example: a £25 print with £3.50 postage
Materials cost £5, packaging £1, the postage label £3.20, and it takes 30 minutes at £15 an hour.
Etsy's fees, including VAT, come to £4.19, or 14.7% of the order. A VAT-registered seller would pay £3.49 on the same sale. To keep 30% profit without VAT registration, list this print at £26.65.
