UK Buyer not Charged VAT, but I was still charged VAT Processing Fees...

[PapillionEra]

There seems to have been a glitch with VAT not being charged on one of my orders. I frequently sell to the UK, and I've never had this happen before. Normally, the order has a note about VAT being paid, Etsy's VAT number, item value listed in Pounds Sterling, and a notification to make sure to mark the package with VAT paid, etc.  

Her purchase was only $57 CAD, so she should have been automatically charged. Oddly, I WAS charged the VAT processing fees as below:

VAT transaction-CA$0.31

VAT processing fee-CA$0.33

VAT Regulatory Operating fee-CA$0.09

VAT delivery transaction-CA$0.17

I'm going to speak to the buyer and cancel the order so she can re-order because this is obviously an error, especially since I'm being charged VAT transaction fees when no VAT was collected by Etsy. 

[BootifulLabels]

You were charged VAT on the fees for the sale, nothing to do with what the buyer paid.

The fees you pay Etsy for their services are subject to VAT just like any other purchase you make.

No need to cancel the sale.  Whether or not Etsy charged the buyer VAT (and if they didn't that is entirely their responsibilty and their problem) they still have to add VAT to all the services you pay for (their fees for selling etc).