PinkyBrainStore
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Etsy no collecting provincial taxes in Canada

Hi!

This is the first time I post here and I am new to Etsy. Hi everyone! I am located in Canada and as you all know since July 2022 Etsy started collecting provincial taxes, for instance in British Columbia we have PST. The orders I have after that date were collected properly, but for the last two orders, I had (one from BC and another from Ontario) Etsy didn't collect taxes (0 taxes). I have contacted the support team and they don't know what happened and still waiting for a solution (it is being weeks now). Has anyone else experienced that? I am a bit worried as I don't want to have any issues with taxes and I am afraid that if I have more orders coming from Canada taxes won't be collected and then who is gonna pay for them? 

Thank you so much for your help!

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Re: Etsy no collecting provincial taxes in Canada

I had a Canadian sale a couple of weeks ago where the sales tax collected was marked as $0.00 in my finances. Then the next Canadian sale went through as normal. I am thinking it is just the odd glitch on Etsy's part. If it is just for the occasional one, I would not worry too much about it. Canada Revenue can take it up with Etsy but we may see an amount taken out of our account in the future.

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Re: Etsy no collecting provincial taxes in Canada

Someone else had mentioned the same problem to me.  That is, taxes had been charged on Canadian orders but then the seller had two orders where no tax was charged.  @cindylouwho2  more Canadian tax issues.

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Re: Etsy no collecting provincial taxes in Canada

  @PinkyBrainStore  I'm in BC.  I just checked your shop and I was charged no tax.  @MartiqueTreasures   In your shop I was charged 12% which is correct, assuming that you aren't GST/HST registered.

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PinkyBrainStore
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Re: Etsy no collecting provincial taxes in Canada

Hi, thanks for the replies. I had 3 sales in BC after July 1st and everything looked great it specifically showed that "Tax (PST) was collected" and for the other two one from BC and another from Ontario was none. @MartiqueTreasures I wonder if it is a glitch from Etsy, why they would take that from our account if it should be the buyer the one who has to pay or by default Etsy because they didn't collect them at the time? I am not too worried now because I just had a couple of orders from Canada with no tax collected,  but if things go better and I start getting more sales, I don't want Etsy to knock on my door in a few months from now asking me for those taxes that they didn't collect. @TreeTreasuresCanada thanks for checking that on my shop. I am not sure if there is anything I can do on my end but I think this is on Etsy's hands. 

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Re: Etsy no collecting provincial taxes in Canada

@PinkyBrainStore yes, Etsy is required to charge the tax, so this is not your problem. 

I wonder if this is because of your production partner being in the US? 

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Re: Etsy no collecting provincial taxes in Canada

What date did the no-tax orders start happening? It's hard to think of any reason this could suddenly happen. 

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PinkyBrainStore
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Re: Etsy no collecting provincial taxes in Canada

The date was July 1st 2022, after that, I had a few orders and all was good. It was an order I had a couple of weeks ago from Bc and another a few weeks ago from Ontario that showed 0 taxes. The fact that the production is in USA is not an issue as that went through with no problem before as I mentioned and also the taxes is just related to where the buyer is located. Thank you for your comment. This makes me feel less alone as I felt very frustrated with that and how Etsy support has been dealing with this.  

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Re: Etsy no collecting provincial taxes in Canada

@PinkyBrainStore so what date was the the first order without tax?

I understand how the tax should work; I'm just trying to figure out why Etsy is screwing it up all of the sudden. Most of this type of issue disappeared after the first few days.  

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PinkyBrainStore
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Re: Etsy no collecting provincial taxes in Canada

One on October 3rd and another one on October 11th

 

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Re: Etsy no collecting provincial taxes in Canada

@PinkyBrainStore ok, thanks! 

I find this interesting as I wasn't charged GST on my fees until October 1st, and have been wondering if something changed for Etsy around that time. The plot thickens...

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Re: Etsy no collecting provincial taxes in Canada

If Canadian orders are coming from the USA, you will not be charged taxes as they will have to come through the Borders and will be assessed on amounts and will be billed to receive in Canada when delivered to them.  If orders are from suppliers with their own Business numbered, they may be using that also and you may not see tax charges.  

I looked for production Partner and did not see one, which should be added, listed on your shop. To add Shop Setting > Production Partner

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PinkyBrainStore
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Re: Etsy no collecting provincial taxes in Canada

Hi, @CraftyCraftsCorners thank you so much for your response. 
As mentioned, I had orders going to Canada before from the USA and I didn't have that issue, it just start happening randomly on my last two orders. 
I do have all the production partners in my settings, but there are in private mode so they are not showing, which I think that is not relevant to the taxes as Etsy was collecting the taxes before. Thank you again for your input  

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