Etsy collecting and remitting Cdn sales tax in error

Just thought I'd post this in case there are any other Canadian sellers being likewise affected. I have had my Taxpayer ID registered with Etsy for years and I have been calculating and remitted sales taxes, as required.  I just noticed that beginning this month, Etsy has started collecting and remitting sales on my Canadian sales.  Thru Chat, I was told this was because Etsy could not verify my Taxpayer ID and that it had to be re-entered.  But, when I tried to do that the text box where one enters the ID number was not working.... it would not register what I was typing in (as if my keyboard was not working).  Chat tells me that this will be looked into and they will get back to me.  In the meantime, I feel like I'm going to end up getting screwed on my Canadian sales until this situation is fixed.  Also, Chat could not tell me how to rectify the sales taxes that have already been remitted.  Anyone else encountering this problem?  You might want to check your Canadian sales this month.

 

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Re: Etsy collecting and remitting Cdn sales tax in error

What Does Etsy Remit to Canadian Tax Authorities? – Etsy Help

This might help.

The rules changed last year. 

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Re: Etsy collecting and remitting Cdn sales tax in error

Thank you but please read my post.  Etsy has had my HST/GST number for years.  It just this month that they started charging my Canadian customers sales tax, in error.

 

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Re: Etsy collecting and remitting Cdn sales tax in error

When you say "Taxpayer ID", are you referring to your SIN or to your GST/HST number?  When I checked one of your items, I was charged 12% tax by Etsy (BC, 5% GST and 7% PST) which would indicate that you have not provided Etsy with a GST/HST registration number and that Etsy is remitting both provincial and federal sales taxes to the respective tax departments.

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Re: Etsy collecting and remitting Cdn sales tax in error

That's the problem.  Etsy has had my GST/HST number for years and everything was working until all of sudden (this month) they started charging my Canadian customers sales tax and remitting it CRA.

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Re: Etsy collecting and remitting Cdn sales tax in error

Bumping this up.  I haven't had any Canadian orders this month (sell mainly Christmas)  but, hopefully, your post puts other Canadians on alert and hopefully you can discover whether it's happening to others.

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heavyistheheart
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Re: Etsy collecting and remitting Cdn sales tax in error

I collect GST/HST as well for ten years now and my last five orders, one three days ago, are not showing etsy collecting on behalf

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Re: Etsy collecting and remitting Cdn sales tax in error

wow, that is an interesting glitch! I went through the checkout process and Etsy indeed did apply GST to my order. (I am in Alberta)

Please let us know if you find out more about this issue

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Re: Etsy collecting and remitting Cdn sales tax in error

I just checked Cindy's store and the Etsy tax system is working in her shop.  In other words, in BC, I'm charged PST at 7% of total sale, net of the GST which is included in the price.

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