Hi Jax,
If you are supplying digital services via Etsy then the responsibility to account for VAT to the end customers belongs to Etsy.
However you are still making a supply of services to Etsy and if Etsy are in the UK then this would be a Vatable supply to them at the rate of 20%.
This would need to be recorded on your VAT return.
If you are making digital supplies to consumers in the EU then you would either have to register for VAT in all the member states where you make supplies to or register for MOSS(OSS) in a country of your choosing.
These supplies would still need to be recorded on your VAT return as Outside The Scope supplies,
If you are supplying services outside the EU then ,again,the supplies would be Outside The Scope of UK VAT and would still need to be recorded on your VAT return
Please see the guidance below:
VAT rules for supplies of digital services to consumers
Thank you.