lililapt
Community Member

I have a doubt about the taxes...

Hi,

 

I am relatively new at etsy and i haven't sold that many items but last 10th of May i sold one item and i have one question. 

The item was sold for 43.50 euros (item + shipping) and etsy applied two taxes:

One is mentioned as Sale and was 2.04 euros

The other is mentioned as transaction and was 1.95 euros.

The shipping price was taxed too (0.23 euros)

 

 

Is this the normal taxation? I don't understand the reason of the two taxes. 

Thanks

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NanaLetha
Community Member

Re: I have a doubt about the taxes...

Are you sure the shipping price was taxed or it's just the Etsy fee against what you charge for shipping?

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CraftyCornishMaids
Community Member

Re: I have a doubt about the taxes...

Etsy charges you payment processing (sale) fees on the full sale price, including shipping, which then has VAT added, shown on a separate line.

They then charge 5% on the full sale price, but they split it into two lines, one line for the item price (transaction), and 1 line for what you charged for shipping (transaction shipping)
each one of these lines, has VAT added, as separate lines,

 

so, you have 3 lines of fees, plus 3 lines of VAT (taxes)

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bythebeadtoo
Community Member

Re: I have a doubt about the taxes...

Here is a list of all possible taxes and fees:

https://help.etsy.com/hc/en-us/articles/115014483627-What-are-the-Fees-and-Taxes-for-Selling-on-Etsy...

It is kind of confusing, but you should see all fees broken down in recent activities on payments account page.  It is important to review it regularly.  I hope that helps.

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FancyTogs
Community Member

Re: I have a doubt about the taxes...

The VAT is charged on the fees for services that Etsy sells to you.

  • The Sale line is payment processing fees. There is also a separate VAT line for the VAT charged on that fee.
  • There is a transaction fee line for each listing variation sold. There is also a separate VAT line for the VAT charged on that fee.
  • There is a transaction fee line for the shipping on the order. There is also separate VAT line for the VAT charged on that fee.
  • There is a listing fee for the each listing variation auto renewed after a sale ("auto-renewed sold"), and another listing fee line if multiple quantities sold ("multi-quantity"). There are also separate VAT lines for the VAT charged on those fees.

Lawrence (Clare's other half)

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