Does box 1a include sales tax?
Tax the marketplace collected from buyers: no. Tax you set up and collected yourself: Etsy lists it as part of gross.
| Kind of tax | On the form? | Etsy's wording |
|---|---|---|
| Sales tax Etsy collects from the buyer and sends to the state | No | "Taxes collected by Etsy from your buyers are not reported on the 1099-K form we issue." |
| Sales tax you applied using the sales tax tool | Listed as part of gross sales | Gross sales "may include but are not limited to" sales, shipping, refunds, card processing fees, sales tax applied using the sales tax tool, and cancelled orders. |
Where the tax shows on a statement
In the statement layout this tool reads (taken from public open-source statement readers, not from an official specification), the Sale row holds what the buyer paid including tax, and a separate row, Type "Tax", Title "Sales tax paid by buyer", takes the collected tax back out. Etsy does not document this. Its help page defines the Amount column only as "The amount of money you made or refunded for this activity." The Payment account page has a line labelled "Sales tax/VAT paid by buyer (Remitted)" for sales tax Etsy collects and remits.
So the tool rebuilds the form's gross from a statement as: Sale rows, less the "Sales tax paid by buyer" rows. If your file works differently, the month will show a difference equal to its "Sales tax paid by buyer" rows and the tool says so.
There is no published specification for the statement file. The row names here are the ones the tool reads. A row with a name it does not know is listed as "not recognised" and left out of the gross, never guessed.
How to tell which one your form reflects
Run the check below. If a month's difference is exactly that month's "Sales tax paid by buyer" rows, the tool says so. That is arithmetic, not a ruling on your form.
Sources, read 10 November 2026: Etsy Help, What Do I Need to Know About My 1099-K Tax Form?; Etsy Help, How Is the Total on My 1099-K Calculated?; Etsy Help, How to Manage Your Payment Account.
Questions
Is marketplace-collected sales tax in box 1a?
Etsy states that taxes it collects from your buyers are not reported on the 1099-K it issues.
Does the statement Sale row include the tax?
In the statement layout this tool reads (taken from public open-source statement readers, not from an official specification), the Sale row holds what the buyer paid including tax, and a separate row, Type "Tax", Title "Sales tax paid by buyer", takes the collected tax back out. Etsy does not document this. If your file works differently, the month will show a difference equal to its "Sales tax paid by buyer" rows and the tool says so.