Introduction
Selling handmade products or vintage items on Etsy? Your marketplace income is subject to income tax filing. This guide covers the tax basics Etsy sellers need to know.
Types of Etsy Income
Income from Etsy generally falls into two categories:
1. Product sales: Revenue from handmade products, vintage items, digital downloads
2. Shipping fees: Shipping charges collected from customers (may differ from actual shipping costs)
Both types are considered taxable income.
Tax Obligations
If you're a tax resident in your country, you're generally required to report worldwide income, including Etsy earnings. This income is typically classified as self-employment or business income.
Tax filing deadlines and requirements vary by country. If your annual revenue exceeds certain thresholds, you may also need to collect sales tax.
※ Please consult a tax professional for accurate tax filing advice.
Exporting Sales Data from Etsy
1. Log in to Etsy Shop Manager
2. Go to Settings → Options → Download Data
3. Select 'Orders' CSV and set the date range
4. Download the CSV file
The downloaded CSV contains order dates, product names, amounts, Etsy fees, and payment processing fees.
Creating Reports with TaxBridge
TaxBridge makes it easy to convert Etsy CSV files into tax-ready reports.
1. Select 'Etsy' platform on TaxBridge homepage
2. Upload the downloaded CSV file
3. Review the data and select your preferred export format
4. Enter exchange rate if needed and download the report
Use the converted report as reference material when filing taxes or share with your accountant.
Deductible Business Expenses
• Etsy listing fees, transaction fees, payment processing fees
• Materials and supplies costs
• Packaging and shipping supplies
• Actual shipping costs (including international)
• Workspace rental (business-use portion)
• Equipment and tools
• Photography equipment, software costs
Keep receipts and documentation for all business expenses.