How VAT Works For Etsy Sellers

How VAT Works For Etsy Sellers - UK VAT Explained

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Күн бұрын

Пікірлер: 25

@oilywax9905 6 ай бұрын

this has been so helpful to me working out my pricing thanks so much, looking forward to the follow up regarding VAT on POD sales

@EtsyDaniel 6 ай бұрын

Great to hear!! 😁 more to come in the future

@loubnasasso3700 2 ай бұрын

@@EtsyDaniel Yess!! Amazing video, really.. would love to hear more about POD sales as well as selling to europe (e.g if sales exceed 10,000)..the process for filing for OSS.

@darenapopova4394 4 ай бұрын

Thanks for the video, very informative! +1 for an explanation on VAT when working with a POD company. I am working with Gelato. My question is, if I register for VAT, does it mean Gelato won't charge me VAT anymore? Or they would still charge me, but I can claim it back from the HMRC?

@alicesilk2774 15 күн бұрын

This has been really helpful but I’m still a little confused, if I’m not VAT registered do I still need to pay something? Like if I earn over a certain amount will I get court out? I really want to start a shop but so nervous I’m going to get into trouble for something? So iv I’m NOT VAT registered it’s all fine and the charges are all paid for? And I don’t need to register or pay HMRC anything just literally upload and go?

@NQMediaUK Ай бұрын

Very helpful info but is it not the case that once you are registered for VAT and you move to a business to business scenario rather than not pay any VAT for materials you do actually pay it initially but are then able to claim it back against your overall VAT bill?

@jaylee98211 Ай бұрын

Hi Daniel, fantastic video, lots of useful info put into easily understandable content. Thanks. Most educational Etsy videos are created by US sellers, so when it comes to taxes and VAT, most do not apply to us 🇬🇧🇪🇺. I’m subscribing, diving into your content, and waiting for more. About income tax? I'm not there yet, but just wondering what will happen when I exceed 1K but have not yet reached 85K. What obligations would I have since then and what actions to take? I am employed full-time, so tax-free allowance exceeded even without Etsy. Hope you will talk more about that in future videos (unless you already did and I just can't find it 🧐🙈)

@allthingsgj 3 ай бұрын

Thank you for this info. I am new to Etsy. I am NOT VAT-registered but still Esty charged me VAT on selling price. I already paid VAT to the POD company for: 1) the product and 2) I also paid VAT on the shipping price. Etsy shouldn't have charged me VAT on seller price. Right? Please could you advise? Thanks

@breejones2501 6 ай бұрын

Thank you Daniel. I’m not selling enough to be VAT registered yet but it was interesting to know this.

@EtsyDaniel 6 ай бұрын

I’m glad you found some value in it 😁

@mi_alexandra_09 4 ай бұрын

And if is just digital products? Printable products?

@GuyThwaitess 3 ай бұрын

This is one of the best videos I found regarding VAT for Etsy sellers in the UK, and trust me I've been doing some digging! What I don't understand is, if I pay VAT on my material and shipping costs (through printify) becasue I'm not VAT registered, will I also need to pay income tax on those same sales if I earn over £12,570 profit in the tax year (from both my day job and my Etsy store)? Thans! Looking forward to the VAT for POD video.

@faisalejaz3326 3 ай бұрын

Dear sir, just explain one thing that the vat tax would be on total sales value or fba and refferel fees, or total profit made by sales on amazon? How can i calculate my vat tax as a across border seller. Thanks

@markbowen6623 6 ай бұрын

Hi Daniel. Thank you for posting a video on a subject most other POD KZbinrs won't touch. I'm based in the UK and am about to start an Etsy store. My aim, at least at the start, is to only sell to the US market. I'm hoping that if I don't sell in the UK I won't have too much to worry about in terms of VAT.

@EtsyDaniel 6 ай бұрын

Thanks for your kind words Mark - I am trying to create some educational content based on my experiences selling here from the UK :-) Sounds like a reasonable approach, the region you target really depends a lot on who your target audience is that you're trying to reach. Wishing you all the best going forward!

@seraphcms2511 6 ай бұрын

Great video Daniel, really well laid out. But I believe that that there is one area that needs a bit more clarification (apolgies if you plan to cover this in another video) Etsy is a buiness that needs to pay UK VAT itself so it charges customers VAT on top of your price on Etsy (Your German example makes this much more complicated). This VAT charge happens irrespective of wether or not a seller is VAT registered as the cusomer is buying from Etsy and not from the seller. Have I got this wrong? I'm not saying anything you said was incorrect, just that when you hear that Etsy charges and remits VAT its confusing, it certainly confused me!

@EtsyDaniel 6 ай бұрын

Thanks for reaching out and for your kind words about the video! Let's dive straight into your question for some clarity. Etsy does handle VAT in a way that's a bit unique. When a customer buys a product from a seller on Etsy, Etsy automatically charges VAT on these sales because it's considered that the customer is buying from Etsy, not directly from the seller. This is true for buyers in the UK and other countries where VAT applies, and it happens regardless of whether the seller is VAT registered. So, you're right about Etsy charging customers VAT on top of the price listed by the seller. However, there's a crucial distinction to be made for VAT-registered sellers. If you, as a seller, are VAT registered and you've provided your VAT registration number to Etsy, then you are responsible for handling VAT on your sales. In this scenario, Etsy allows you to manage how VAT is applied to your listings, and it's up to you to include VAT in your prices and to remit it to your country's tax authority. Essentially, for VAT-registered sellers, the responsibility for VAT shifts from Etsy to the seller. The confusion often arises from the difference in VAT handling between VAT-registered and non-VAT-registered sellers on Etsy. Your observation is spot-on for the general case (non-VAT-registered sellers), but for VAT-registered sellers, the process involves direct management of VAT by the seller. Again, this is not financial advice... I am by no means a tax or VAT expert - I'm just trying to explain things in the way I understand them :-) Hope this helps though! Let me know your thoughts

@seraphcms2511 6 ай бұрын

@@EtsyDaniel I'm not actually an Etsy seller (I am a software engineer building a CMS for Etsy sellers) so it's fascinating to hear your experience of working with Etsy on VAT. It's very interesting to hear that Etsy will adjust their fees and other aspects based on a seller's VAT status. Through my research on the whole POD selling flow it's clear that taxation is a nightmare if you are VAT registered as every penny of cash flow has to accounted for and asigned to inputs and outputs for company accounts. I assume you are VAT registered, how do you handle that? Also as you work with both Printful and Printify, how are they with VAT?

@citybloomstreasures 6 ай бұрын

Thanks a lot for your video is a Good one, bit the problem is if you have a winning one and you have a lot of profit and you are not registered and how do you manage that?

@EtsyDaniel 6 ай бұрын

Hi! Not sure I understand your comment - would you mind clarifying? :)

@citybloomstreasures 6 ай бұрын

@@EtsyDaniel yes of course. That if you are not a business registered and all of a sudden you earn more than 1000 euros in one month you have problems with the government cause you have to clarify from where the money comes from and you can be finned. Thanks for your time.