Upcoming Changes to Value-Added Tax on Etsy

[CheyneSews]

Today, we’re announcing two updates that are part of our continued efforts to improve Etsy’s global marketplace for both sellers and buyers.

++Please note: Your shop will be affected by these changes only if you’re based in the European Union.++

++What’s New++

Starting today, Etsy will begin providing downloadable value-added tax (VAT) invoices to sellers in the European Union who are based outside of Ireland and who have submitted a VAT ID number through their Etsy account settings. Each monthly VAT invoice will contain contact and VAT registration information for both your shop and Etsy, along with a breakdown of any VAT-eligible fees billed in the previous month. Starting today, you can access monthly VAT invoices starting with the month you added a VAT ID to your account (you will have access to invoices as far back as January 1, 2015). Going forward, you will receive VAT invoices each month on the first of the month.

In the middle of 2016, Etsy will begin charging VAT on listing fees, transaction fees and Promoted Listings fees for eligible sellers in the EU and remitting it to the appropriate EU tax authority. Depending on your location and whether you have submitted a VAT ID to Etsy, this may result in an increase in your monthly Etsy invoice. Your VAT rate will be determined by your country of residence. We are currently working on this new collection process and will update you at least 30 days before we implement it, which we expect to happen midyear.

++Get More Information++
For in-depth information about these changes and what they mean for your shop, please read our Seller Handbook announcement (etsy.com/seller-handbook/article/39713889599) and updated Help article about how VAT works on Etsy (etsy.com/help/article/5524).
We know that many sellers in the EU have been eager for VAT invoices on seller fees from Etsy. Thank you for your patience and feedback as we work on continued improvements related to VAT, and for being a valued member of Etsy’s global community.

[CheyneSews · Accepted solution]

Thanks for sharing all your questions and concerns.

If you are in the EU outside of Ireland and share your VAT ID number with Etsy, you will not be charged VAT on your seller fees. By providing a VAT ID to Etsy, you are establishing a business-to-business relationship between your shop and Etsy. This status and your business location determines whether or not Etsy will charge VAT on seller fees.

For sellers who are not VAT-registered, VAT is a consumer tax that is to be charged on our seller fees. Up until now, Etsy has been paying this on your behalf. This has no impact to our revenues; we will be collecting the VAT and remitting it to the tax authorities.

Please take some time to read over the Help article “How VAT works on Etsy” (https://www.etsy.com/help/article/5524) for more information about how your shop may be affected by the changes announced yesterday.

These updates are part of our continued efforts to improve our global marketplace for both sellers and buyers. We’ll update sellers in affected countries when we have new information to share with you.

[CheyneSews]

Earlier this month, we let you know about changes related to value-added tax (VAT) on Etsy’s seller fees. Etsy will begin charging VAT on seller fees, including listing fees, transaction fees and Promoted Listings fees, for eligible sellers in the EU and remitting it to the appropriate EU tax authority.

Depending on your location and whether you have submitted a VAT ID to Etsy, this may result in an increase in your monthly Etsy invoice. Your VAT rate will be determined by your country of residence.

We have been working on the collection process and plan to begin charging eligible sellers VAT on seller fees starting on May 1, 2016.

Please read the updated Site Update for more information: https://www.etsy.com/seller-handbook/article/upcoming-changes-to-value-added-tax-on/39713889599

[Former_Member · Accepted solution]

As a reminder, on May 1, 2016 Etsy will begin charging value-added tax (VAT) on seller fees, including listing fees, transaction fees and Promoted Listings fees, for eligible sellers in the EU and remitting it to the appropriate EU tax authority.

VAT will be charged on applicable fees during the entire month of May and will appear on your May invoice, which you'll receive on June 1. However, the individual fees may not begin to appear in the itemized portion of your monthly billing statement until the end of the first week of May. Look for your complete May invoice on June 1.

[Former_Member · Accepted solution]

Hi everyone,

Just a reminder that you will begin to see valued-added tax (VAT) charged on any applicable seller services fees for the month of May on your May bill (available today - June 1). For more information, please read our original announcement: https://www.etsy.com/seller-handbook/article/upcoming-changes-to-value-added-tax-on/39713889599

We’d also like to let you know that your May 2016 invoice will now be available before the end of June, not on June 1 as previously communicated. We apologize for any inconvenience this may cause, and going forward each invoice will be available on the first of the month, starting with the June 2016 invoice, available on July 1, 2016.

Thank you!
Emily

[Former_Member · Accepted solution]

Hi Everyone,

The May 2016 VAT invoices are beginning to roll out to all applicable sellers and will be available within the next few days. You can access the invoice on your desktop computer by visiting Your shop > Finances > Your bill. Once there, click on the month to get an invoice for that period. The download link will appear above the breakdown of your activity for the month.

Starting next month, each month's invoice will be ready on the 1st of the following month. (IE: June's invoice will be available on July 1.)

Thank you!
Emily