Etsy Hikes Fees for European Sellers
Etsy, the online marketplace for handmade and vintage goods, has announced that it will increase its Regulatory Operating fees for sellers in some European countries starting June 1, 2023. The fee, which is charged in addition to regular Etsy selling fees, is meant to cover a portion of the increased costs of doing business in those countries, such as the Digital Services Tax.
What is a Regulatory Operating Fee?
A Regulatory Operating fee is a fee that Etsy charges sellers in certain countries where the cost of doing business has increased due to new regulations. The fee is charged on the price displayed for each listing plus the amount charged for shipping (including gift wrapping and personalization, if applicable). Where applicable, this fee will also be subject to VAT charges.
Why does Etsy have a Regulatory Operating fee?
Etsy introduced the Regulatory Operating fee in July 2021 after the European Union implemented a Digital Services Tax (DST) on online platforms that generate revenue from users located in the EU. The DST is a tax on the revenues of digital services that are considered to create value through user participation, such as online marketplaces, social media platforms and search engines. The DST applies to companies with annual global revenues of more than €750 million and EU revenues of more than €50 million.
Etsy said that the DST increased its costs of operating in the EU and that it had to pass on a portion of those costs to its sellers through the Regulatory Operating fee. Etsy also said that the fee helps ensure that it can continue offering its services to sellers in those areas and support them in making a positive impact on their local communities.
Which countries will be charged a Regulatory Operating fee?
The Regulatory Operating fee applies to sellers in five European countries: United Kingdom, France, Italy, Spain and Turkey. However, only three of those countries will see an increase in the fee starting June 1, 2023.
The new rates are as follows:
The new rates are as follows:
United Kingdom: change from 0.25% to 0.32%
France: change from 0.40% to 0.47%
Italy: change from 0.25% to 0.32%
Etsy said that the impact of the fee increase on sellers’ businesses will be small. For example, a UK seller with a £25 sale will see a Regulatory Operating fee increase of only 1 pence on their Payment Account. Etsy also said that it will continue to monitor the regulatory landscape and adjust its fees accordingly if there are any changes in the future.
Disclaimer:
Etsy is the registered trademark of the online marketplace.
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