Introduction
Etsy, Inc. operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world. These marketplaces share a mission to “Keep Commerce Human”, and we’re committed to using the power of business to strengthen communities and empower people. Our primary marketplace, Etsy.com, is the global destination for unique and creative goods. Buyers come to Etsy to be inspired and delighted by items that are crafted and curated by creative entrepreneurs. For sellers, we offer a range of tools and services that address key business needs.
Etsy, Inc.’s “House of Brands” portfolio also includes fashion resale marketplace Depop, musical instrument marketplace Reverb, and Brazil-based handmade goods marketplace Elo7. Each Etsy, Inc. marketplace operates independently, while benefiting from shared expertise in product, marketing, technology, and customer support.
This document sets out the UK tax strategy of Etsy, Inc.’s UK subsidiaries (the “Group”). This tax strategy document is published in order to comply with section 161 and paragraph 19(2) of schedule 19 Finance Act 2016.
Etsy’s Approach to tax risk management and governance arrangements
At Etsy, our approach is to strive to operate within the relevant law and comply with the tax rules in all jurisdictions in which we operate, including the UK. The Etsy Tax Team is responsible for regularly identifying, monitoring and reviewing potential tax risks, both in the UK and globally.
The Tax Team works with the Group through routine and open dialogue to ensure that the activities at the Group are within the tax policies set out and overseen by the Tax Team. In addition, Etsy routinely seeks professional advice on tax law, where appropriate. Tax risk management is overseen by our Chief Financial Officer (“CFO”) and the Audit Committee of the Board of Directors. The day-to-day responsibilities of management of our tax affairs is delegated by the CFO to the VP, Tax and Treasury.
Etsy‘s Attitude toward tax planning
Our aim is to ensure that our tax planning is in line with our business objectives and strategy. The Tax Team strives to ensure compliance with all tax laws applicable to the Group. Etsy is committed to complying with its global tax obligations and also to ensuring that relevant taxes are paid in a timely manner.
Etsy may seek professional external tax advice in the event that there is complexity or intricacy in determining the appropriate tax treatment.
Etsy‘s Level of tax risk accepted
As a multinational company, Etsy endeavors to comply with all the relevant tax laws and regulations both globally and specifically within the UK.
Etsy’s Tax Team monitors changes to the global tax policy landscape to identify new legislation and assesses the impact identified changes might have for the Group. The Tax Team aims to ensure up to date internal processes, procedures and controls are in place to appropriately manage tax risk. Where tax legislation gives rise to inherent uncertainty, the Group files on the basis of its determination of the most reasonable application of the relevant law after seeking appropriate professional tax and legal advice and reviewing with the CFO and Audit Committee, as appropriate.
Etsy’s Approach towards Her Majesty’s Revenue and Customs (“HMRC”)
Etsy is committed to having a professional, cooperative and transparent relationship with HMRC in relation to our UK tax affairs. We strive to remain compliant with the timely submission of all relevant UK tax returns and seek to respond to any information requests from HMRC in a clear, concise and prompt manner.
Last updated on 02 Mar, 2022