Does Etsy Count as Self Employed?

Tax Obligations for Etsy Sellers

• Etsy sellers are considered self-employed and need to pay taxes from net profit.
• Register a self-employed business if selling more than £1,000 in a year on Etsy and pay taxes based on income.
• Tax rules vary by country, and income from e-commerce enterprises is taxable.

Income Verification and Reporting

• Download monthly/annual reports from Etsy to get proof of income.
• Etsy sends one 1099-K form combining all shops’ gross totals for sellers with multiple shops.

Fees and Taxes

• A 5% transaction fee is applied when an item sells on Etsy.
• If accepting payments through Etsy Payments, a 3% + $0.25 payment processing fee is collected.

Self-Employment Responsibilities

• If earning $400 or more from self-employed endeavors, be aware of Medicare and Social Security tax responsibilities.

Miscellaneous Information

• Customers pay you through Etsy, and having a strong shop and brand can generate revenue even while on vacation.
• Sales tax money collected by Etsy is not received by sellers and should not be counted as seller income.