Sell on Etsy from Spain. With clear accounts from the first order.
Registration as a sole trader or company, VAT on Etsy fees, VAT on your sales to customers in other countries, the accounting of your deposits and what Etsy reports to the Spanish Tax Agency.
In short
Selling on Etsy regularly is a business activity: you need to register with the Tax Agency and with Social Security as self-employed, or use a company; declare VAT and income; and book sales at their gross amount, not at what Etsy deposits.
Etsy invoices its fees from Ireland and reports your sales to the Spanish Tax Agency under DAC7. With the ROI registration, fees come without VAT; from €10,000 a year in sales to consumers in other EU countries, the customer's country VAT applies through the OSS.
What's included for Etsy sellers
Registration and legal form
Tax and self-employed registration, or a company if it pays off. If you resell products without transforming them, the equivalence surcharge scheme; if you make them yourself, standard VAT.
Etsy fees
Etsy Ireland invoices listing, transaction, payment processing and advertising fees. With the ROI registration they come without VAT and you self-assess it on Forms 303 and 349.
Sales to other countries
EU customers: Spanish VAT up to €10,000 a year and, from there, the customer's country VAT through the OSS. UK and US: Etsy collects the tax on the orders it is responsible for.
OSS and IOSS →Etsy Payments accounting
Sales at their gross amount, each fee as an expense, refunds with their credit note and deposits reconciled with the bank.
DAC7 and the Tax Agency
Etsy reports your sales and fees for the year to the Spanish Tax Agency. Your income tax and VAT should match that data.
What it reports →Packaging and products
If you ship to Germany or France, the packaging registration (EPR) those countries require from anyone selling there.
What's needed →Which tax Etsy collects for you and which it doesn't
| Where your customer is | Who declares the tax | What you do |
|---|---|---|
| Spain | You, with Spanish VAT | Invoice and quarterly VAT return |
| Another EU country | You: Spanish VAT up to €10,000 a year in EU sales; from there, the customer's country VAT | OSS registration and quarterly return (Form 369) |
| UK, orders up to £135 | Etsy collects and pays UK VAT | Export: no Spanish VAT, with proof of shipment |
| United States | Etsy collects and pays sales tax in the states that require it | Export: no Spanish VAT, with proof of shipment |
| Other countries outside the EU | The buyer pays import taxes, except where Etsy collects them (Australia or New Zealand, for example) | Export: no Spanish VAT, with proof of shipment |
Common mistakes on Etsy
- Booking only what Etsy deposits in the bank: the fees are lost as an expense and VAT doesn't add up.
- Selling without registering because “it's not much”: the Tax Agency receives your sales through DAC7.
- Paying VAT on Etsy fees every month because you aren't on the ROI.
- Still charging Spanish VAT to EU customers after passing €10,000 a year.
- Shipping to Germany or France without the packaging registration they require.
How it starts
Tell us what you sell
Whether you make it or resell it, which countries you ship to and how much you sell. By email or in a 15-minute call.
A look at your situation
Registration, VAT scheme, Etsy fees and whether anything from previous years needs regularising.
Fixed quote
What you need and what you don't.
Up and running
ROI registration, your Etsy account set up and a first return reviewed with you.
More on Etsy on the blog: Etsy Ireland fees and VAT · accounting for an online store.
Frequently asked questions
Do I have to register as self-employed to sell on Etsy?
If you sell regularly, yes: it is a business activity. You need to register with the Tax Agency (Form 036) and, as a rule, with the Social Security self-employed scheme, or use a company. Selling something of yours you no longer use now and then isn't an activity; making or buying things to sell on Etsy is.
Does Etsy charge VAT on its fees?
It depends on whether you have an intra-EU VAT number. Etsy invoices from Etsy Ireland UC: with your ROI registration validated in VIES and entered in your account, fees come without VAT and you self-assess it on Form 303, at no cost, and declare it on Form 349. Without that registration, Etsy charges you VAT and you can't deduct it.
What VAT do I charge a customer in France or Germany?
As long as your sales to consumers in other EU countries don't exceed €10,000 a year in total, Spanish VAT. From then on, the VAT of each customer's country, declared in Spain every quarter through the OSS (Form 369), without registering in each country.
What if I sell to the United States or the UK?
They are exports: no Spanish VAT as long as you keep proof of shipment. In the United States, Etsy collects and pays sales tax in the states that require it; in the UK, Etsy collects UK VAT on orders up to £135. Otherwise, the buyer pays the import taxes.
Does Etsy report my sales to the Spanish Tax Agency?
Yes. Under DAC7, every January Etsy sends the Spanish Tax Agency your previous year's sales by quarter, the fees charged, your tax ID and your bank account, and sends you a copy. Only those with fewer than 30 sales and no more than €2,000 in the year are left out.
How do I book Etsy Payments deposits?
At the gross amount of each sale, with Etsy's fees as an expense and the deposit as a net receipt. That way output VAT comes from what the customer paid and the fees are deducted.
Does the equivalence surcharge scheme apply if I sell on Etsy?
If you are a sole trader reselling products you buy without transforming them, generally yes, like any retailer: you don't file quarterly VAT on those sales and you pay the surcharge to your supplier. If you make what you sell, you aren't in the equivalence surcharge scheme and you use standard VAT.
Tell us where you sell
Book a 15-minute call or write to us. We tell you what you need to sell on each marketplace: registration, VAT on your sales and on the fees, OSS, EPR or whatever the platform has asked you for. No commitment.