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.
Are you sure the shipping price was taxed or it's just the Etsy fee against what you charge for shipping?
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)
Here is a list of all possible taxes and fees:
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.
The VAT is charged on the fees for services that Etsy sells to you.
Lawrence (Clare's other half)