I am a little lost with the recent changes.
I have my own GST number. And Etsy tells me to increase my prices by the GST amount. So, it means I have to increase my prices by 15% to accommodate HST in some provinces? That seems really steep.
What happens when someone from outside of 15% HST regions orders? Am I supposed to refund the tax? (That would be a lot of manual work)
Also, most of my products are PST exempt in BC. But Etsy is collecting PST on all physical goods. I think my customers start avoiding Etsy so that they don’t have to pay unnecessary tax.
Anyone feeling the same way?
You price your items including tax, how you do that, will be a "best guess" depending where you think your sales normally come from.
But when someone buys, that is the price they pay, including whatever the % is where they are from
so you have to "reverse" calculate back, what the actual tax is, that they have paid, for their province.
Do NOT refund anything
.......
The PST is down to etsy, they will use the category you have for your goods, to decide whether they are tax exempt or not, if you think that category is tax exempt, and etsy is charging it, log a ticket (don't expect anything quickly)
@FibreArtStudio Increasing our prices to include GST/HST is most certainly problematic. You don't necessarily need to use the 15% for your increase, you could average it out at 10% or use some other figure. I wouldn't recommend any refunding. I do suggest that you express your concern about the GST/HST methodology Etsy has chosen to Etsy and, perhaps, others. Many Canadian sellers have been very vocal about our concerns and expressing disapproval may not help the situation but it certainly doesn't hurt.
As far as your non-taxable items, you will need to contact Etsy Support. I checked your first item and BC tax is incorrectly being charged. When you contact Etsy, provide them with the link to Bulletin PST 130 (link below). Keep your Support ticket going until the matter is resolved.
https://www2.gov.bc.ca/assets/gov/taxes/sales-taxes/publications/pst-130-fabric-craft-stores.pdf