Is the sales tax in my Etsy statement my income?

Where Etsy collects and pays sales tax to the state itself, the statement adds that tax to the sale and removes it again with a separate Tax row, so it nets to zero in the converted file. Check with your tax preparer how to treat any tax you collect yourself.

How does the payout reach my bank account in Xero?

Xero does not accept bank or credit card accounts in a manual journal, and a journal line cannot be reconciled against a bank feed line anyway. So each journal books the payout to a payout clearing account, a current asset account you create (for example Payouts in transit), not a bank account. When the deposit appears in your bank feed, reconcile it against that clearing account (Receive Money coded to it). Do not code the deposit to sales: the journal has already booked the sales, so that would count them twice.

Why does my Etsy deposit not match my sales?

Etsy deducts listing fees, transaction fees, payment processing fees, shipping labels and ads from your balance before it deposits. The journal entry lists each kind of fee, so the difference between sales and deposits is accounted for.

What is not confirmed yet?

Xero's template download needs a Xero login, so we have not compared the exact header text (including the asterisks Xero puts on required columns) with a freshly downloaded template; the column names follow Xero's help page. We have also not confirmed Xero's default account codes, which tax rate names exist in each country, or whether imported journals arrive with "Show journal on cash basis reports" ticked. We have not imported the result into a real Xero organisation. Check the first journal before importing many.

Etsy payouts to a Xero manual journal

In short: Etsy's monthly statement CSV lists sales, listing fees, transaction fees, processing fees, ads, shipping labels and sales tax as separate rows, with dates written out and "--" where a value is empty. A Xero manual journal per payout records what the payout was made of: gross sales, fees and refunds on their own lines, and the payout itself on a payout clearing account, because Xero does not accept bank accounts in a manual journal. Each journal adds up to zero, debits positive and credits negative, in the layout of Xero's manual journal import template. Drop the file below. It is converted on your device and never uploaded.

Convert your file

Etsy to Xero manual journal

Choose file

etsy_statement_YYYY_M.csv (best), EtsySoldOrdersYYYY-M.csv, EtsyDepositsYYYY-M.csv

Your file stays on this device

It is read and converted by this page, inside your browser. Nothing from the file is uploaded, and the converter keeps working offline once the page has loaded.

No file handy? or download the sample to look at it first.

The data in the sample is invented. It is converted on this device, the same way your own file would be.

1. Export the file from Etsy

Best for your books: Shop Manager > Finances > Monthly statements > View all monthly statements.
Pick the year and month and click Generate CSV; Etsy emails you when it is ready.
Click Download Now in the email, then Download CSV.
Sold Orders and Deposits CSVs: Shop Manager > Settings > Options > Download Data, choose the CSV type, month and year.

Why a raw Etsy export fails in Xero (manual journal import)

Your bank receives deposits from Etsy that are sales minus a long list of fees. Etsy does not say which sales each deposit pays, so the converter writes one journal entry per month with sales, each kind of fee and refunds in their own lines, and that month's deposits on the payout clearing line.

Xero's bank statement import puts every line into one bank account, so a payout split into sales, fees and refunds needs either a clearing account in Xero or a journal. A manual journal per payout (or per month when the export does not link sales to payouts) books gross sales, fees, refunds and payments you sent to their own accounts, and the payout amount to a payout clearing account: a current asset account that is not a bank account, because Xero does not let manual journals post to bank or credit card accounts. When the deposit arrives in your bank feed, reconcile it in Xero against that payout clearing account (Receive Money coded to it), and the clearing account goes back to zero. Xero imports the journals as drafts, and you post them after checking.

What is unusual about the Etsy file

The monthly statement has a byte-order mark, currency symbols in amounts ("-€0.19") and "--" for empty values.
Dates are written out ("January 30, 2025" or "16 January, 2024" depending on your locale).
Deposit rows have no amount in the amount columns; the amount is only in the title ("$120.00 sent to your bank account").
Buyer-paid sales tax is included in the sale and removed again by a separate Tax row, because Etsy pays it to the state.
Sold Orders has two-digit years (10/04/25) and no listing, transaction or ad fees.
Etsy does not link deposits to the sales they pay out, so journal entries are grouped by month.

What Xero (manual journal import) requires

Columns as in Xero's manual journal template: Narration, Date, Description, AccountCode, TaxRate, Amount and two pairs of tracking columns.
Narration and Date on the first row of each journal; the rows below with both left blank belong to the same journal.
Dates as dd mmm yyyy (05 Mar 2026) or dd/mm/yyyy.
Account codes, not names (for example 200). Debits positive, credits negative; each journal adds up to zero.
No bank or credit card accounts: the payout is booked to a payout clearing account (a current asset), and the bank feed deposit is reconciled against it.
Up to 300 lines per file (we split bigger files without breaking a journal). Journals are in your base currency.

2. Before and after

Before: the Etsy monthly statement CSV as downloaded

Date,Type,Title,Info,Currency,Amount,"Fees & Taxes",Net,"Tax Details"
"March 31, 2025",Deposit,"$1,208.35 sent to your bank account",,USD,--,--,--,--
"March 28, 2025",Marketing,"Etsy Ads","Bill for click-throughs to your shop on Mar 27, 2025",USD,--,-$0.86,-$0.86,--
"March 20, 2025",Refund,"Refund to buyer for Order #3600000002",,USD,-$17.37,--,-$17.37,--
"March 20, 2025",Fee,"Credit for processing fee","Order #3600000002",USD,--,$0.89,$0.89,--
"March 20, 2025",Tax,"Refund to buyer for sales tax","Order #3600000002",USD,--,$1.30,$1.30,--
"March 9, 2025",Fee,"Listing fee ($0.20 USD)","Listing #1500000001",USD,--,-$0.20,-$0.20,--
"March 8, 2025",Fee,"Transaction fee: Shipping","Order #3600000001",USD,--,-$0.31,-$0.31,--
"March 8, 2025",Fee,"Transaction fee: Hand-thrown mug, ""speckled"" glaze...","Order #3600000001",USD,--,-$2.73,-$2.73,--

After: what Xero (manual journal import) receives

After: etsy-xero-manual-journal-month-2025-03-31-to-2025-03-31.csv
*Narration	*Date	Description	*Amount
Etsy activity 2025-03 (2025-03-31, BR-20250331-1)	31 Mar 2025	Gross sales - Etsy activity 2025-03	-1250.00
		Refunds - Etsy activity 2025-03	17.37
		Fees - Etsy activity 2025-03	4.83
		Sales tax collected by marketplace - Etsy activity 2025-03	2.06
		Deposit - Etsy activity 2025-03	1208.35
		Kept in Etsy balance - Etsy activity 2025-03	17.39

Synthetic sample data that follows the real export layout, not a real account. The "after" output was produced from it by the same converter this page runs.

3. Import the converted file into Xero (manual journal import)

Make sure every account code in the file exists in your Xero chart of accounts (enter your codes in the options before downloading). The payout clearing code must be a current asset account, not a bank or credit card account: Xero does not accept those in a manual journal.
In Xero, in the Accounting menu, select Manual journals.
Click Import, then Browse, and select this CSV.
Click Import, review the message, then click Complete Import. The journals arrive as drafts.
Open the Draft tab and check each journal: add a tax rate to each line if the file has none, and tick "Show journal on cash basis reports" if you report on a cash basis (the template has no column for it). Then select the journals and click Post.
When the deposit (or the net pay withdrawal) appears in your bank feed, reconcile it against the payout clearing account (Receive Money or Spend Money coded to that account), not against sales.

Questions

Is the sales tax in my Etsy statement my income?: Where Etsy collects and pays sales tax to the state itself, the statement adds that tax to the sale and removes it again with a separate Tax row, so it nets to zero in the converted file. Check with your tax preparer how to treat any tax you collect yourself.
How does the payout reach my bank account in Xero?: Xero does not accept bank or credit card accounts in a manual journal, and a journal line cannot be reconciled against a bank feed line anyway. So each journal books the payout to a payout clearing account, a current asset account you create (for example Payouts in transit), not a bank account. When the deposit appears in your bank feed, reconcile it against that clearing account (Receive Money coded to it). Do not code the deposit to sales: the journal has already booked the sales, so that would count them twice.
Why does my Etsy deposit not match my sales?: Etsy deducts listing fees, transaction fees, payment processing fees, shipping labels and ads from your balance before it deposits. The journal entry lists each kind of fee, so the difference between sales and deposits is accounted for.
What is not confirmed yet?: Xero's template download needs a Xero login, so we have not compared the exact header text (including the asterisks Xero puts on required columns) with a freshly downloaded template; the column names follow Xero's help page. We have also not confirmed Xero's default account codes, which tax rate names exist in each country, or whether imported journals arrive with "Show journal on cash basis reports" ticked. We have not imported the result into a real Xero organisation. Check the first journal before importing many.

Other ways to convert Etsy

Other exports to Xero manual journal

Common import problems

Your Etsy deposit does not match your sales