Consult a tax specialist to learn about your tax obligations and whether you're required to charge VAT.
The Etsy platform doesn't allow sellers to charge VAT based on their buyer's location. Instead, sellers must include VAT in their listing prices.
After an order is made, sellers then have to calculate how much VAT to deduct and remit it to the country in which they're registered as a VAT payer.
Here are some suggestions on how Etsy sellers can go about this:
- Raise your product prices to include VAT charges. The downside is that you may be overcharging US/worldwide customers.
- If you don't have many EU customers, you may consider not raising your product prices and covering VAT out of pocket.
- The best solution may be to open a separate store for EU customers. That way you can price your listings to include VAT.
For more Etsy VAT help, check out these links: