Hi everyone,
We know how critical understanding and using financial information is when it comes to making long-term business decisions. That’s why today, we’re pleased to roll out some updates to your seller payment account. On a high level, here’s what you can expect:
- Straightforward financial summaries: We’ve updated the way we summarize information to make understanding your finances easier. Within those summaries, all refunds, credits, processing fees, and sales tax are explicit and separated out from each other.
- More financial education moments: We’ve added tooltips and descriptors for all fees, so you can better understand what you’re being charged and why.
We know that you probably have some questions, so here are some answers!
Q: Why did you only make these changes for 2022 and forward? Why didn’t you apply these changes to previous years?
We know that each seller has their own unique workflows for managing finances. We didn’t want to disrupt how past data is presented and potentially interfere with these workflows. After careful consideration, we decided to roll out these new seller payment account updates on January 1 so that you can use your existing workflow for 2021 finances and focus on acclimating to a new workflow, if needed, starting in 2022.
Q: What are the sales tax and/or VAT paid by buyer line items that I see in my Payment Account?
Depending on your business status and location, buyers may be charged a sales tax or VAT in order to comply with local regulation. Etsy may be required to collect this tax from buyers and remit it to the relevant tax authority. There are two places that you’ll find this information in your seller payment account:
- The Sales section of your Activity summary: “Sales tax/VAT paid by buyer (Remitted)” only includes tax Etsy collected from your buyers that is then paid to local tax authorities.
- In the Recent activities section: This is the itemized version of what appears in the Sales section of your Activity summary. You will see “Sales tax/VAT paid by buyer” as a separate line item for each order.
- If you’d like to learn more about this topic, check out this Help Center article.
Q: Does the summary include tax collected by me as a seller and Etsy?
The sales tax/VAT paid by the buyer will only show the tax collected by Etsy.
Q: Will Shipping transaction fees appear in the “Shipping” section or the “Fees” section of the Activity summary?
A: You’ll find total shipping transaction fees in the Fees section under the heading “Transaction fees.” You can see the individual charges for each transaction fee, including shipping, in the Recent activities section or in your Monthly statements.
Q: What is the difference between the Available for deposit, net profit, and current balance numbers?
A: Here’s the breakdown:
- Available for deposit total: This is your available Etsy Payment sales funds minus fees, refunds and taxes, and any reserved funds. “Available” funds are accessible and available for you to disburse into your bank account at the current time. Learn more.
- Net profit: This is the sum of your summary activity, which includes your Total sales, Fees, Marketing, and Shipping costs for the selected time period. Learn more.
- Current balance: The running total of all your Payment account activity, including sales (both available and not yet available for deposit), deposits sent to your bank account, refunds, fees, and all other Payment account activity. Learn more.
Q: What’s the difference between 1) the Revenue number on the Shop Manager dashboard and stats page and 2) the net profit number on my seller payment account?
A: The Revenue in your Shop Stats includes all your sales minus any discounts you provided to buyers. This total doesn’t factor in selling fees, shipping costs, or orders that you’ve fully refunded and canceled (learn more here). The net profit is the sum of your summary activity, which includes your Total sales, Fees, Marketing, and Shipping costs for the selected time period (learn more here).
To learn more, check out this site update.
We also want to hear your thoughts on these updates, so please submit your feedback here. We review all of the responses we receive and will keep your feedback in mind when updating future iterations of the seller payment account.
