Quick Answer
Etsy deposits into your bank account are net amounts after Etsy fees and GST/HST collected. Your gross revenue for tax purposes is the full sale price before Etsy deductions. Reconcile every month using Etsy's Finance Report CSV to separate revenue from fees and tax.
Etsy deposits a weekly or monthly payment to your bank account that represents your net sales after Etsy's fees and any tax collected. Recording this deposit as revenue is the most common Etsy bookkeeping mistake Canadian sellers make.
What Etsy Deducts Before Your Deposit
- Listing fees ($0.20 per listing in USD)
- Transaction fees (6.5% of total sale including shipping)
- Etsy Payments processing fees (3–4%)
- Etsy Ads charges (if you run ads)
- GST/HST collected on Canadian sales (Etsy holds and remits this separately)
- USD/CAD currency conversion fee (if billing in USD)
Monthly Reconciliation Process
- Download monthly Finance Report from Etsy (CSV format)
- Identify gross sales in CAD for the month
- Identify all fee types and amounts
- Post gross sales to revenue account
- Post each fee type to expense accounts (categorized correctly)
- Verify net amount matches bank deposit
Handling USD Fees
Etsy charges listing fees in USD. Convert to CAD at the Bank of Canada rate on the fee date. Your accounting software should handle this automatically if you set up Etsy as a multi-currency account.
MaxRefund Handles Etsy Bookkeeping for Canadian Sellers
We reconcile your Etsy deposits to gross sales monthly, categorize fees as expenses, and keep your books CRA-ready.
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