Etsy charging VAT on my listings

[wikandah]

Last week I started to create listings with Printify, print on demand, I paint the patterns and they print, and I realized that Etsy is charging VAT on my listings, I set up the price for some leggings at 33 EUR, when I open the listing, it is 39,60 EUR. I don't understand why. Somebody in USA could please check how you see my price? It is probably a bug, I don't know, I only know that this will surely put away customers.

I would like to fix that

I am sending a link for a list

https://www.etsy.com/listing/1232588105/blue-purple-orange-and-yellow-yoga?click_key=03afeeb73c9740b...

[NanaLetha]

$35.81 in USD

[wikandah]

Thank you, so, they aren't adding VAT to USA

[ProjectoAlfarroba]

It´s because they are shipped from the United States. Etsy now has to charge VAT on physical items shipping to the EU from outside EU.

[NanaLetha]

That listing says shipping from France.

[ProjectoAlfarroba]

It says it ships from the UK. I saw another one that shipped from the USA. This one https://www.etsy.com/listing/1232206165/high-waisted-shipibo-yoga-leggings

[wikandah]

Most of my items are shipping from France where my shop is, but not this one, the leggings are connected to Printify that ships it

[Spellbinderie]

It's not a bug.  You are using Printify in the UK according to that listing (maybe also in the US?) so that makes those items an import for your buyers in the EU.

Etsy adds import VAT to purchases of items from outside the EU (Printify in this case) shipped to the EU.

[wikandah]

So, VAT is being charged only to EU, people in USA are not seeing this I guess

[ProjectoAlfarroba]

@wikandah 

They won´t see the VAT, but may still pay sales taxes, depending on the state they live. But I think sales tax is only added to the cart, not in the listing price.

[Spellbinderie]

@wikandah 

EU buyers see VAT.
US buyers see sales tax.
Australian buyers see GST.

UK buyers see VAT for your items shipping from France.

And so on for all countries that require marketplaces to collect tax on sales purchased from outside their economic zone.
Where the tax is shown to the buyer depends on their country's rules.  In the EU we need to see it immediately, for other countries, it's added at checkout.  More info in Etsy's help section.

[Spellbinderie]

By the way, for shipments to the UK or Australia, you need to put Etsy's tax number on the package, indicate that VAT or GST has been collected and include an invoice that has your SIRET.   Otherwise there is risk that tax will be billed to the buyer again.  Governments are getting stricter and stricter about these things.

[wikandah]

Now I understand why my sales shutted down to United States, since they started ti increase VAT on my listings shipped from France, not the news ones from Printify

[FaustTique]

I got this notice from ersy as well to make sure its noted on the invoice...i use printify, how exactly do i do this? Nothings solod online. Step by step

[CraftyCornishMaids]

@wikandah 

Many countries have made platforms collect the IMPORT VAT now, instead of the buyer paying it to customs when they receive it,

So etsy has to charge IMPORT VAT, on orders under 150 euros, when sent from OUTSIDE the EU, to inside the EU

and import VAT sent on items, under £135 from OUTSIDE the UK, to inside the UK

and GST on items sent on items under Aus$1000 from OUTSIDE Australia, to inside Australia,

the USA requires state sales tax added, regardless of where it comes from

etc

that is why it is very important the sending country is correct.

More info from etsy here

https://help.etsy.com/hc/en-gb/articles/360000337247-Custom-Fees-and-Physical-VAT-Collection?segment...

inside eu-eu countries, you have to sort it out yourself.

[wikandah]

Thank you

Now I understand why my sales shutted down to United States, since they started ti increase VAT on my listings shipped from France, not the news ones from Printify

[CraftyCornishMaids]

@wikandah 

VAT is NOT charged on your items shipped from France to the USA,

Sales tax will be charged, but that has been happening for quite a few years, it's not new, and it's not very much

what will be happening, is import VAT will be charged on items shipped to UK - but the the seller won't have to pay import VAT to customs - it's actually cheaper, as they don't have to pay the £8 handling fee at all.