Etsy Fees UK: Processing, Regulatory Fees and GBP Examples

What the UK fees apply to

The 6.5% transaction fee covers item price, shipping and gift wrap. UK processing is 4% + GBP0.20 on the applicable order total, including buyer tax. The regulatory operating fee is 0.48% of item price, shipping and gift wrap. These bases differ from seller profit.

Sources checked October 11, 2026: Etsy fees, Etsy Payments country rates and regulatory fee schedule.

Example: GBP20 item plus GBP3 buyer shipping

Assume one listing charge, GBP0.80 per USD solely for this illustration, no buyer tax, no Offsite Ads or currency conversion. Product and actual postage cost GBP8.

Seller revenue

£23.00

Transaction

£1.50

Processing

£1.12

Regulatory

£0.11

Illustrative listing

£0.16

Total before VAT on fees

£2.89

Payout before seller costs

£20.11

Profit before fee tax and other costs

£12.11

Actual tax on seller fees must be added separately. This is a reproducible scenario, not an invoice or a live exchange-rate quote.

Currency, tax and ads

Currency conversion is a separate 2.5% charge when the listing currency differs from the payment-account currency. Converting a USD listing charge to GBP is not proof that every sale requires that additional fee.

Review the Etsy VAT-on-fees guidance and your invoice. Registration, invoice tax, reverse-charge obligations and input-tax recovery are distinct questions.

Offsite Ads applies to attributed orders at 15% or 12% under Etsy's threshold rules, capped at US$100 per order, converted to the account currency. Do not apply that percentage to every sale.

Use the UK inputs

Select United Kingdom in the fee calculator. Enter buyer tax separately and use the actual listing conversion. UK regulatory fees are included automatically. Add actual tax on seller fees and other charges once; avoid counting them twice.

For a profit budget, subtract materials, paid labor, postage, packaging, advertising and overhead from payout. US default profit rates must be changed for a UK order. See methodology for the limits of each estimate.