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Etsy seller taxes in Canada: what to track

Running an Etsy shop in Canada means tracking more than sales. Here is what Etsy and the CRA say, and what to log for each order.

Not tax advice. This is general information, not advice for your situation. Date checked: October 23, 2026. Rules can change, so read the sources at the bottom.

What Etsy says it collects

Etsy's help page says that since July 1, 2022 it collects GST/HST on eligible orders from shoppers in Canada. It says it remits that tax to the tax authorities.

What happens depends on whether you add a GST/HST or QST number to your Etsy account:

  • With a number added. Etsy says it will not collect these taxes on physical goods. You adjust your listing prices to collect any required tax and remit it yourself.
  • With no number. Etsy says it collects the tax and remits it.

Etsy warns that if you also collect and remit, buyers may be charged twice.

Tax on your seller fees

Etsy says tax can also apply to the fees it charges sellers:

  • If you are GST/HST registered, GST/HST is charged on all seller fees.
  • If you are not registered, GST/HST is not charged on payment processing and transaction fees for a sale where Etsy already charged the buyer GST/HST. Other fees, such as listing fees and ads, are always taxed.
  • BC sellers are charged PST on all seller fees. Manitoba and Saskatchewan sellers are not.

Etsy tells sellers to ask a tax accountant whether tax on fees can be reclaimed.

The $30,000 question

Etsy says registration is required once sellers reach $30,000 CAD in sales. The CRA's small supplier rule is covered in our GST/HST guide.

Not confirmed: Do sales where Etsy collects the buyer's tax count toward your $30,000 small supplier test? We could not confirm this. Etsy's page does not say. The CRA page on platform sales says a platform collects tax on goods for vendors who are not registered, but it does not say how those sales count for the test. Ask the CRA or an accountant.

What to log for each order

Etsy says you can download an Orders CSV from Shop Manager (Settings, Options, Download Data). Use it as a starting point, then add what it lacks.

  • Order date and buyer province.
  • Item price and shipping you charged.
  • Tax Etsy collected from the buyer, if any.
  • Etsy fees: listing, transaction, payment processing, ads.
  • Tax charged on those fees.
  • What you paid for postage and packaging.
  • What the item cost you to make or buy.

Profit per order is what is left after you take away the fees, postage, packaging and item cost from what you received, leaving out any buyer tax that is not yours. Work it out per order, so each sale shows its own result.

A made-up example

A buyer pays $40 for an item plus $10 shipping. Fees and tax on fees come to $5.20. You pay $11 for postage and $1.50 for packaging. The item cost you $14. Profit on this order is $40 + $10 − $5.20 − $11 − $1.50 − $14 = $18.30. These numbers are invented to show the sum.

Where to look

  • Etsy says to include cancelled orders when you use the CSV to find sales reported to Canada.
  • Etsy says to add your tax IDs under Shop Manager, Finances, Legal and tax information.

What CRA lists on the tax form

On Form T2125, the CRA has lines for delivery, freight and express, and for management and administration fees, which it says include bank charges for processing payments. Whether a cost is deductible for you is a question for a tax professional.

More in our guide to T2125 expense categories.

Sources

Date checked: October 23, 2026. Not legal, tax or accounting advice. Rules change, so check the official pages before you act.

Want this in a ready-to-use tool? The workbook has an orders log with fees, shipping and cost of goods, so you can see profit per order. See the Canadian Online Seller Bookkeeping Workbook (CA$29) or buy it now.

We sell this product. This guide is free and stands on its own.

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