Etsy Tax Updates For Sellers In Canada

Liz Morton ~ Founder
Liz Morton ~ Founder


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Etsy announces tax updates for Canadian sellers effective July 1, 2022.

3 Important Tax Updates for Sellers in Canada
Today we’re announcing three tax-related changes that impact you as a seller in Canada. Etsy is required to make these changes as a result of new regulations. They will all go into effect on July 1, 2022. 1. Etsy will start collecting Canadian sales tax including GST, HST, QST, and PST on orders pl…

Today we’re announcing three tax-related changes that impact you as a seller in Canada. Etsy is required to make these changes as a result of new regulations. They will all go into effect on July 1, 2022.

  1. Etsy will start collecting Canadian sales tax including GST, HST, QST, and PST on orders placed by shoppers in Canada. Etsy will remit these taxes to the Canadian government on your behalf.

What this means for you: If you already have a GST/HST number, add it to your Etsy account and we won’t charge your Canadian buyers GST/HST on orders for physical items. If you don’t have a tax ID yet, consider registering for one as your business grows.

If you have a Quebec sales tax (QST) number, you can also add that to your account and Etsy won’t charge QST on orders shipped to buyers in Quebec.

You may already be collecting sales tax from your customers and remitting it to tax authorities. Adding your tax ID number ensures that your customers won’t pay GST/HST or QSTs twice—once from you and once from Etsy. Reduce the amount of tax your customers pay by adding your tax ID number.

Add your tax ID number here.

  1. We’ll also start charging GST/HST on your seller service fees.

Due to these new tax regulations, Etsy is required to charge GST/HST on seller service fees in some instances. If Etsy has already collected GST/HST on the order, you won’t be charged sales tax on order-related fees (payment processing and transaction). GST/HST will always be charged on all other seller services fees such as listing fees, Etsy Ads or Offsite Ads fees, or Pattern subscription fees. You’ll see the tax you pay on your fees reflected in your shop payment account.

  1. When these changes go into effect we’ll be getting rid of the existing sales tax tool.

We’re getting rid of this tool, which lets you set your own sales tax rates, to ensure that taxes are accurately represented to buyers. We’ll send more reminders about these changes before they go into effect. Add your GST/HST number to your account today to stay ahead of the updates.

If you need help registering for GST/HST or have other questions on your eligibility, please reach out to your tax and legal representative.

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