Enter your sales for the VAT period. See what you owe HMRC on physical sales, and why digital downloads and overseas orders are handled by Etsy.
Assumes a UK VAT-registered seller on standard VAT accounting at the standard 20% rate (not the Flat Rate Scheme, not reduced/zero-rated goods). UK listing prices are treated as VAT-inclusive, so the VAT inside them is the gross × 1/6. Digital downloads: Etsy calculates, collects and remits VAT based on the buyer's location — that is why those orders show tax handled by Etsy. Non-UK physical sales: Etsy collects any applicable buyer-country taxes; they are outside your UK VAT return's box 1 in the common case. Tip: add your VAT number in Etsy settings, or Etsy will also charge VAT on your seller fees. This is a planning tool, not tax advice — confirm your return with HMRC guidance or an accountant. Rules last reviewed 2026-07-31. Full explainer: Etsy VAT for UK sellers · fees side: Etsy profit calculator.