Etsy Taxes
To set up sales tax on Etsy, go to Finances and select Payment Settings. You can set tax rates for states and zip codes if your state has local sales tax. Review each state’s requirements for collecting and remitting sales tax, as states differ in tax rules. After your Etsy shop goes live, ensure you are charging sales tax to buyers.
Etsy Fees
Etsy fees include listing fees, selling fees, and payment processing fees. There is a 2.5% currency conversion fee if your shop and bank currencies differ. Etsy collects sales tax, VAT, GST or HST in some cases. The transaction fee does not apply to those taxes, but does apply to the listing price.
Etsy Taxes Reporting
If you reached more than 20,000 USD in gross sales and more than 200 transactions in 2023, Etsy will send you a 1099-K form to use when filing taxes for 2023. This form reports total gross sales processed by Etsy Payments, not profit or tax liabilities.
On Etsy, create a strong password with letters, numbers, and symbols for account security. Contact Etsy with any account-related issues. Consider if selling on Etsy is worth the fees, as it provides an established platform to sell your goods.