Instructions for invoicing to Etsy
If you sell digital products via Etsy, Etsy collects sales taxes on the sales and pays them independently to the tax office.
You cannot change this.
As a small business according to §19 UStG, you are probably also asking yourself the question,
how to record income and expenses via Etsy in your income statement (EÜR) or your balance sheet.
This is how I did it:
Step 1:I invoice Etsy for the net sales of my earnings at the end of each month. = The sum of all income from digital products (excluding sales tax) including the costs that are paid to Etsy. You can see this amount in the following monthly overview:
This is what an invoice you issue to Etsy might look like:
ATTENTION: Do you also sell physical items?
You will write an invoice directly to the customers of your physical items.
Here you can find the appropriate template:
For the part of digital sales you add up the net sales yourself. You can find an overview of your net sales in the CSV file of your orders >. You can see how to get there here:
Now you have downloaded the CSV file, it is best to open it with a spreadsheet program such as Excel for clarity. Take the net sales only from your digital products in the Price column.
Step 2:I simply send the created invoice to Etsy with the net sales of the digital products to the Etsy email: legal@etsy.com< /strong> and put it with my documents for the tax office.
Step 3:I download the monthly statement from Etsy for all of my Etsy fees. This one is a little harder to find. You are still on the Monthly Billing page. Here you have to make sure that you select a past month. Now theVAT appears below. Reportingon. Click on Download.
Step 4:I store these documents in my accounting department.Step 5:Of course, I also document the payouts from Etsy (account statements).
Explanation: Since a small business owner is only someone who generates a maximum of EUR 22,000 in sales per year, it is important to determine the exact turnover. If you ignore Etsy's deductions on transactions or sales commissions, you will reduce your overall sales. This would result in you delaying your exit from the small business regulation.On the other hand, of course, you don't want sales taxes to be added to your income that you didn't generate at all. The sales tax arises because Etsy acts as a seller to the customer. That's why I invoice Etsy and not the customer themselves.Author's Note: It would be nice if Etsy provided a statement of sales that excludes sales tax. In addition, all income and expenses as well as the payments made should be clearly listed. Then an auditor from the tax office could easily understand the transaction processes.
Comments