FEES & PAYMENTS POLICY Sellers may be charged for using some of Etsy’s services. This Fees & Payments Policy explains your fees, bills and taxes and how to pay them. This policy is a part of our Terms of Use. By opening an Etsy shop, you’re agreeing to this policy and our Terms of Use. 1. Types of Fees 2. Fee Avoidance 3. Paying Your Etsy Bill 4. Direct Checkout 5. Taxes 6. Gift Cards 1. TYPES OF FEES Sellers may be required to pay the following types of fees: LISTING FEES You will be charged a listing fee of $0.20 USD for each item that you list for sale on Etsy’s website or mobile apps. You will only be charged a listing fee for creating or renewing a listing; there is no fee for editing a listing. You will be charged a listing fee whether or not the listed items sells, unless you create a private listing, in which case you will only be charged the listing fee when the private listing is sold. Listings expire after four months. If you list multiple quantities of the same item, the initial listing fee will be $0.20, and the listing will be automatically renewed at $0.20 after each of the items sells. You can read more about fees for multiple listings in this Help article. Listing fees will appear on your Etsy bill. It's important to note that listing fees are non-refundable. AUTO-RENEW. You may choose to enable Etsy’s automatic renewals feature. The listings you select for automatic renewal will automatically renew at the end of each four-month listing period and you will be charged the listing fee of $0.20 for each of these listings until you cancel automatic renewals. You may cancel automatic renewals at any time by selecting “Manual” instead of “Automatic” in the “Renewal Options” in the Listings Manager. Once you cancel, you will only be charged for the current listing period. TRANSACTION FEES When you make a sale through Etsy, you will be charged a transaction fee of 3.5% of the item price. This percentage does not apply to the shipping cost or tax. Transaction fees will appear on your Etsy bill. PAYMENT PROCESSING FEES ONLINE SALES. Eligible Etsy Shops may use Etsy’s Direct Checkout service to accept certain payments through Etsy (learn more about Direct Checkout below). Etsy charges a payment processing fee for processing each transaction through Direct Checkout. Payment processing fees vary based on the location of your bank account. See the Direct Checkout Policy to find payment processing fees by country. This fee is assessed on the total amount of the sale, including tax and shipping. Unlike other fees, the payment processing fee is deducted from the transaction amount as the funds become available for deposit. Payment processing fees will be reflected in your Shop Payment Account, rather than on your Etsy bill. IN-PERSON SALES (US SELLERS ONLY). For information on payment processing fees for in-person sales made through the Sell on Etsy mobile app and the Sell on Etsy Reader, please see the Sell on Etsy App & Reader Policy. ADVERTISING FEES If you purchase an ad (which we call a Promoted Listing) through Etsy, you will be charged separate advertising fees. Advertising fees vary by opportunity and will be clearly outlined before you commit to purchasing an ad. You will be able to determine a daily advertising budget, and Etsy will not charge you more than your daily budget. Advertising fees will appear on your Etsy bill. For more information, please see the Advertising Policy. SHIPPING FEES Etsy offers sellers based in the United States and Canada the ability to purchase shipping labels to fulfill their orders through USPS and Canada Post, respectively. The cost of the shipping label will depend on the origin and destination and weight and size of the package. If you add signature confirmation or insurance, those fees will be added to the total cost of the label at the point of purchase. Sellers who purchase shipping labels may also purchase parcel insurance through licensed insurance carriers. You must accept Direct Checkout or PayPal as payment methods to purchase shipping labels through Etsy. Shipping fees will appear on your Etsy bill. For more information, please see the Shipping Policy. WHOLESALE FEES Sellers who participate on Etsy’s Wholesale platform are subject to a non-refundable $100 USD joining fee, which is added to your Etsy bill upon your acceptance to Etsy Wholesale. All sales made on Etsy Wholesale incur the standard transaction fee of 3.5% of the wholesale price (excluding taxes and shipping costs). Wholesale fees will appear on your Etsy bill. For more information, please see the Wholesale Seller Policy. PATTERN FEES You can try our Pattern tool to create a personalised website for free for 30 days. After the 30-day free trial, you’ll be charged a monthly subscription fee of $15.00 USD. Your first month’s bill will be pro-rated, and you will be charged the full subscription fee for each subsequent month you use Pattern. If you purchase a domain name through our partner Tucows, Inc., you will also be charged a fee to register the domain name and for any related services you purchase from Tucows. AUTO-RENEW. The subscription fee will automatically renew at the end of each month. You can turn your subscription off at any time by clicking “cancel Pattern” from the Pattern settings on your dashboard or from your Shop Payment Account. If you switch the service off after the first day of a month, you’ll still be responsible for paying the full subscription fee for that month. All sales made through your Pattern site will incur the standard transaction fee of 3.5% of the item price (excluding taxes and shipping costs). There are no additional listing fees to list items on your Pattern site. All Pattern fees will appear on your Etsy bill. For more information, please see the Pattern Policy. DIGITAL VAT (VALUE-ADDED TAX) FEES Under European Union law, when you sell a digital item that is downloaded automatically to a buyer living in the EU, VAT (a value-added tax) must be collected based upon the rate that is charged in the country where the buyer is located. To make this convenient for you, Etsy will automatically increase the amount charged to the buyer of the digital item to collect the correct amount of VAT, and Etsy will remit the VAT to the tax authorities. The amount will depend on the buyer’s country of residence. If the sale was made through Direct Checkout, Etsy will collect the VAT amount from the buyer and pay the VAT to the relevant tax authority and you will not have to take any further action. If the sale was not made through Direct Checkout, you will receive the additional amount paid by the buyer for VAT and you will need to pay that amount to Etsy, so that we can pay the relevant tax authorities. The VAT amounts will appear on your Etsy bill each month. IMPORTANT LEGAL NOTE: Solely for VAT purposes, when you sell a digital item to an EU buyer, you are legally supplying the item to Etsy, Etsy will supply the digital item to the buyer, and the buyer will be treated as a consumer. You can learn more about VAT for digital items in this Help article. CURRENCY CONVERSION All fees that appear on your Etsy bill are in US Dollars. If you list items in a currency other than US Dollars, your item price will be converted to US Dollars solely for purposes of calculating the transaction fee. To avoid incurring foreign exchange charges, Etsy recommends you list your items in the same currency as your bank account. Buyers will see the items in the currency of their choosing. If you decide to list in a currency other than that of your bank account, you will be charged 2.5% over the current market rate to send funds to your bank account. Learn more about currency conversion here. Currency conversion is handled automatically by our payment processing service and further described in our Direct Checkout Policy. 2. FEE AVOIDANCE Any action by a seller to avoid paying a fee is considered fee avoidance and is strictly prohibited by Etsy. This includes, for example, encouraging buyers to purchase an item in your Etsy Shop through another venue. The price stated in each listing description must be an accurate representation of the sale. Sellers may not charge excessive shipping fees. Sellers may not alter the item's price after a sale for the purpose of avoiding Etsy transaction fees, misrepresent the item’s location, or use another user's account without permission. You can find other examples of fee avoidance in this Help article. 3. PAYING YOUR ETSY BILL Etsy will send you a bill at the beginning of each month. The Etsy bill will detail the amount due for the prior month’s fees and services. You are responsible for paying your Etsy bill in full within 15 days of the date of the invoice, or the account will be considered past due. You can learn more about paying your Etsy bill in this Help article. Sellers may pay their Etsy bill manually by credit card, debit card, PayPal or by using their Shop Payment Account balance. US sellers may also enroll in AutoBilling, Etsy’s automatic bill payment option. AUTOBILLING (US SELLERS ONLY) By enrolling in Etsy’s AutoBilling automatic payment plan, your fees will be charged to the credit card you have on file. To use the plan, you agree to the following terms. A. You authorise Etsy to keep your payment card information on file and to charge the card on file on the first day of each calendar month for the previous month’s outstanding charges, and at any time the balance of fees reaches the designated fee threshold for your account. Upon enrollment, Etsy will charge the card on file with your current balance. B. When your card account is debited, Etsy will send you an email with the amount charged. You can also review this information by accessing your account on the Etsy site. C. If your card account on file with us is closed or the account number is changed, or if, for any reason, a charge is rejected by your card issuer, you must update your card information or add a new card number in your Etsy account. If your charge is refused by the issuer for any reason, you may be subject to penalties such as the suspension of your account privileges and/or termination, and you are not released from your obligation to pay your bill by some other means. Your authorisation applies to any successor or replacement card you or your card issuer provides. D. You may cancel AutoBilling and change to manual billing by updating your billing setting in your Etsy account. Etsy requires a reasonable period of time to act after we receive your notice. This means that an additional automatic payment may be made to your card account while we are processing your request. E. Suspended or terminated members remain obligated to pay Etsy for all unpaid fees. For more information on AutoBilling, please see this Help article. 4. DIRECT CHECKOUT Etsy’s Direct Checkout service enables sellers to accept various forms of payment in their local currencies while using Etsy’s services. Sellers registered for Direct Checkout can accept payment by credit card, debit card, Etsy Gift Card, PayPal, some bank transfer services, and Apple Pay. Only Direct Checkout users in the US can use the Sell on Etsy Reader to accept in-person payments. You can register for Direct Checkout by clicking here. Sellers using Direct Checkout are also subject to the Direct Checkout Policy. 5. TAXES You are responsible for collecting and paying any taxes associated with using and making sales through Etsy’s services. US sellers can learn about collecting sales tax in this Help article. Etsy will issue 1099-K forms to certain sellers in the United States to comply with IRS requirements. You can learn more in this Help article. To learn more about VAT in the European Union, please see this Help article. For digital items sold to buyers in the EU, Etsy will help you collect and remit VAT as described above. 6. GIFT CARDS If you are registered to use Direct Checkout, you may accept payment by Etsy Gift Cards. Etsy Gift Cards are subject to the Etsy Gift Card Policy. Etsy also charges the Direct Checkout payment processing fee described above on Etsy Gift Card transactions. Last updated on 16 May, 2016
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