How VAT works on Etsy

For information on VAT requirements in your location, please consult a tax specialist.

Businesses in certain countries may be required by their local tax authorities to register for a VAT ID if they reach their local country threshold. However, in some countries, you may also register for VAT even if you have not reached the threshold.

If you are a VAT registered business, you may be required to charge VAT on the items that you sell on the Etsy platform but unfortunately, Etsy doesn’t allow businesses to charge VAT based on their buyer’s location. So what can you do? There are a few options:

• Raise your prices to include VAT.
• If you don’t have many EU customers, you may consider covering VAT out of pocket.
• Open a separate store for EU customers to include VAT.

For more information check out this Etsy article https://help.etsy.com/hc/en-us/articles/360000337247

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