Trying to figure out and understand GST/HST obligations on Etsy can be hard for Canadian sellers.

GST/HST Registration Threshold

In Canada, businesses are required to register for a GST/HST number once their taxable revenues exceed $30,000 CAD in a 12-month period. This registration mandates the collection and remittance of GST/HST to the Canada Revenue Agency (CRA).

What Does Etsy’s Do for Canadian Tax Collection?

For GST/HST Registered Sellers with the CRA

If you have uploaded your GST/HST ID to Etsy:

  • Tax Collection: Etsy does not collect GST/HST on your behalf.
  • Pricing Strategy: You’re responsible for including the appropriate tax in your listing prices.
  • Remittance: You must remit the collected taxes directly to the CRA.

This ends up being kinda weird.  What is normal is for the price to be listed and then the sales taxes added to the price.  Etsy says that you need to adjust your prices to account for the applicable tax rates, which vary by province. For instance, Ontario has a 13% HST, while Alberta only has a 5% GST.

So what should Etsy sellers do?  I would probably use a blended rate say 10% and factor that into your selling price.  I would also put that in your descriptions so customers understand.

For Non-Registered Sellers with the CRA

If you haven’t registered for GST/HST:

  • Tax Collection: Etsy automatically collects GST/HST (and QST for Quebec buyers) on your sales to Canadian buyers.
  • Remittance: Etsy remits these taxes directly to the appropriate tax authorities.
  • Seller Responsibility: You’re not required to include GST/HST in your listing prices or remit these taxes.

You should monitor your sales closely. Once you cross the $30,000 CAD threshold, you must register for GST/HST and update your Etsy account.  There isn’t a magical bell that goes off so you need to watch the levels yourself.

Provincial Sales Taxes (PST/RST/QST)

Etsy is mandated by the government to to collect and remit provincial sales taxes in certain provinces, regardless of your GST/HST registration status:

  • British Columbia (PST)
  • Saskatchewan (PST)
  • Manitoba (RST)
  • Quebec (QST)

Buyers in these provinces will see the applicable provincial taxes at checkout, which Etsy collects and remits to the respective tax authorities.

Don’t Forget – Tax on Seller Fees

Etsy charges GST/HST on specific seller fees based on your location and registration status:

  • Registered Sellers: GST/HST is charged on all seller fees.  You want to make sure you claim these back and break them out from your expenses like normal GST/HST amounts.
  • Non-Registered Sellers: GST/HST is charged on fees like listing fees, advertising fees, and subscription fees, but not on payment processing and transaction fees if Etsy has already collected GST/HST on the order.(Etsy Help)

These taxes are remitted by Etsy to the appropriate tax authorities.

Accessing Tax Information

Etsy provides a CSV file of your orders, including tax details, which can be downloaded from your Shop Manager under “Settings” > “Options” > “Download Data.” This file is invaluable for accurate tax reporting and record-keeping.

For more detailed information, refer to Etsy’s official guide: What Does Etsy Remit to Canadian Tax Authorities?

Need assistance with your Etsy shop’s accounting and tax obligations? Contact us at info@jonescosman.com to help.

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