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Etsy Opposes Proposed Online Sales Tax in UK

Etsy Opposes Proposed Online Sales Tax in UK

Etsy said it opposes a new online sales tax that the UK government is considering imposing because it would hurt ecommerce, particularly small and microbusinesses like Etsy sellers, “who would bear the brunt of the tax.”

“The proposed tax is intended to address concerns that the business rates system imposes an unreasonable burden on high street stores, as they face a tax on the rental value of non-domestic property, while online retailers can operate without the “high-value” properties,” Etsy stated. “But while there may be legitimate concerns about the viability of the high street, a new tax on online sales is the wrong approach—especially in the midst of COVID-19.”

It’s asking sellers to sign a petition in opposition to the proposed tax, which starts out as follows:

I am a creative entrepreneur who sells goods on Etsy in the UK, and I’m deeply concerned about the possible introduction of a new online sales tax as part of the Government’s review of the business rates system in England.

Etsy hosts 3.1 million creative entrepreneurs, 83% of whom are women and nearly all of whom run one-person businesses out of their homes. For every hour we spend making, we spend another hour on business and administrative tasks. And as microbusinesses, complex and costly tax and regulatory obligations pose an immense challenge.

I understand and support the concerns about the viability of the high street, but feel an online sales tax would unnecessarily burden small businesses, consumers, and even the high street retailers themselves.

The petition then explains why.

As of Tuesday afternoon, it had 18443 signatures. You can read the announcement about the petition on the Etsy Announcement Board.

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.

One thought on “Etsy Opposes Proposed Online Sales Tax in UK”

  1. The only thing hurting micro businesses on Etsy is…..Etsy.
    By the way, as government closes the noose around the necks of Apple, Google, Amazon, and others,
    Etsy and Ebay are now in the crosshairs.
    So Etsy, enjoy your pilfering from the unappreciated artists…..It’s all crashing down in a little while.

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