Quick Answer
Etsy collects and remits Canadian GST/HST on your behalf as a marketplace facilitator. However, your Etsy sales still count toward the $30,000 registration threshold. Once you're registered, you must not charge additional GST/HST on Etsy sales — Etsy already handles it. You still charge GST/HST on any other channels yourself.
Etsy's marketplace facilitator status for Canadian GST/HST creates significant confusion among Canadian sellers. Here's exactly what Etsy handles and what you still need to manage yourself.
What Etsy Does as a Marketplace Facilitator
Effective July 1, 2021, Etsy became a marketplace facilitator for Canadian GST/HST purposes. For orders shipped to Canadian addresses, Etsy:
- Calculates the appropriate GST/HST rate based on the buyer's province
- Collects the tax from the buyer at checkout
- Remits it directly to the CRA
What Etsy Does NOT Handle
- GST/HST registration for you (you may still need to register independently)
- GST/HST on your other sales channels (Shopify, craft fairs, etc.)
- Quebec QST registration (Etsy handles QST collection as well, but you may need QST registration if you have Quebec sales from other channels)
The Critical Point: Etsy Sales Count Toward $30,000
Even though Etsy handles GST/HST collection on your behalf, your Etsy gross sales still count toward your personal $30,000 GST/HST registration threshold. If you have $20,000 in Etsy sales and $15,000 from craft markets, you've crossed $30,000 total and must register — then charge and remit GST/HST on the craft market sales yourself.
Don't Double-Charge GST/HST on Etsy Sales
A common mistake: sellers register for GST/HST and then configure their Etsy shop to charge additional tax. This results in buyers paying double GST/HST — once to Etsy and once to you. Once you're GST/HST registered, set your Etsy shop tax settings to "Not collecting tax" and let Etsy continue handling it as the marketplace facilitator.
MaxRefund Clarifies Your Etsy GST/HST Obligations
We help Canadian Etsy sellers understand exactly what Etsy handles vs. what you still owe — and file it correctly.
Get a Free Quote