What costs should be taken into account when opening an Etsy shop?
Posted: Wed Jan 29, 2025 4:23 am
To sell on the platform, the operator of an Etsy shop must take the following costs into account:
Fees for setting up the products
Fees for transactions on the platform
fees for processing payment transactions
The individual steps of opening an Etsy shop
Opening an Etsy shop follows the following steps:
The seller registers on the platform and determines whether he is a commercial or freelance seller.
In order to organize the sale optimally, choosing the right country and currency is an important factor.
The seller then indicates how much time he invests in his activities on the platform. He can choose between full-time and part-time.
After deciding on a shop name, the operator finally determines the terms of payment.
The tax side of an Etsy shop
Anyone who sells something on a long-term basis and intends to make a profit must pay taxes on the income generated. The tax side of an Etsy shop relates to the following taxes:
income tax
trade tax
sales tax
income tax
The income that the seller generates on the Etsy platform is subject to income tax. germany gambling data However, if the income is below the basic allowance and no other taxable income is generated, the tax office does not impose any taxes. For 2023, the basic allowance is €10,0908. However, the non-imposition of tax does not release the Etsy shop operator from filing an income tax return.
If higher income is generated, the seller enters this either as income from a business or income from self-employment (in the case of freelance or artistic activity) in his tax return. To do this, he prepares an income surplus statement and attaches the EÜR form to his tax return. In this income surplus statement, all costs associated with running the Etsy shop can be claimed as operating expenses that reduce profits. The resulting profit is identical to the income.
Additional allowances can be claimed in the income tax return. In addition to the child allowance and the special allowance, these also include the relief amount for single parents.
trade tax
If the Etsy shop operator carries out a commercial activity, his profits are also subject to trade tax. As a sole proprietor, however, he benefits from the trade tax allowance. This is currently €24,500. If the seller has determined a lower amount with his Etsy shop, he will not be assessed for trade tax. He is, however, obliged to submit a trade tax return to the tax office.
Anyone registered on Etsy as an artist or freelancer does not have to file a trade tax return or pay trade tax to the tax office.
Fees for setting up the products
Fees for transactions on the platform
fees for processing payment transactions
The individual steps of opening an Etsy shop
Opening an Etsy shop follows the following steps:
The seller registers on the platform and determines whether he is a commercial or freelance seller.
In order to organize the sale optimally, choosing the right country and currency is an important factor.
The seller then indicates how much time he invests in his activities on the platform. He can choose between full-time and part-time.
After deciding on a shop name, the operator finally determines the terms of payment.
The tax side of an Etsy shop
Anyone who sells something on a long-term basis and intends to make a profit must pay taxes on the income generated. The tax side of an Etsy shop relates to the following taxes:
income tax
trade tax
sales tax
income tax
The income that the seller generates on the Etsy platform is subject to income tax. germany gambling data However, if the income is below the basic allowance and no other taxable income is generated, the tax office does not impose any taxes. For 2023, the basic allowance is €10,0908. However, the non-imposition of tax does not release the Etsy shop operator from filing an income tax return.
If higher income is generated, the seller enters this either as income from a business or income from self-employment (in the case of freelance or artistic activity) in his tax return. To do this, he prepares an income surplus statement and attaches the EÜR form to his tax return. In this income surplus statement, all costs associated with running the Etsy shop can be claimed as operating expenses that reduce profits. The resulting profit is identical to the income.
Additional allowances can be claimed in the income tax return. In addition to the child allowance and the special allowance, these also include the relief amount for single parents.
trade tax
If the Etsy shop operator carries out a commercial activity, his profits are also subject to trade tax. As a sole proprietor, however, he benefits from the trade tax allowance. This is currently €24,500. If the seller has determined a lower amount with his Etsy shop, he will not be assessed for trade tax. He is, however, obliged to submit a trade tax return to the tax office.
Anyone registered on Etsy as an artist or freelancer does not have to file a trade tax return or pay trade tax to the tax office.