Guide
Claiming GST/HST on Etsy fees
Once you're registered, Etsy adds GST/HST to every fee it charges you. That tax is usually yours to claim back, and it comes straight off what you owe.
What Etsy charges tax on
Etsy's Canada help page is direct about it: for a GST/HST registered seller, “GST/HST will be charged on all seller fees.” That covers listing fees, transaction fees, payment processing fees, Etsy Ads, Offsite Ads and Pattern subscriptions.
You may read elsewhere that adding your number to Etsy stops the tax on fees. In Canada it works the other way. Unregistered sellers skip GST/HST on transaction and processing fees for orders where Etsy already charged the buyer. Registered sellers pay it on everything.
That's fine, because a registered seller can claim it back. An unregistered seller can't claim any of the tax they pay on listing fees or ads.
Claiming it: input tax credits
The CRA lets you claim GST/HST you paid as an input tax credit when all of these are true:
- You bought the thing for your business. Etsy fees are.
- You were registered for GST/HST when the tax was paid or became payable.
- You have the right records before you claim.
- You claim within the time limit, generally four years.
The total goes on line 106 of your return. It's subtracted from the GST/HST you collected on line 103, and the difference on line 109 is what you owe.
Provincial sales tax works differently. If you're in British Columbia, Etsy also charges PST on your fees. PST isn't part of the GST/HST return, so you can't claim it on line 106.
The records you need
Etsy publishes a tax invoice for your fees every month, on the first of the month for the month before. You download it from your Payment account on a computer. Each one summarizes your fees and the tax on them in US dollars, so you'll convert to Canadian dollars for your return.
What the invoice has to show depends on the amount:
| Invoice total | What it must show |
|---|---|
| Under $100 | The supplier's name, the date, and the total paid. |
| $100 to $499.99 | All of the above, plus the supplier's GST/HST registration number and the tax charged (or the total rate and a note that tax is included). |
| $500 or more | All of the above, plus your name, the payment terms, and a description of what was supplied. |
Check that your Etsy invoice shows a GST/HST registration number, and confirm it with the CRA's GST/HST Registry before you rely on it. Keep every invoice for six years.
When you can't claim
- You use the Quick Method. Quick Method filers can't claim input tax credits on operating expenses like Etsy fees. The lower remittance rate already accounts for them.
- You weren't registered yet. You generally can't claim GST/HST on fees you paid before your registration date.
- You don't have the invoice. The CRA expects the records in hand before you claim, not after it asks.
Common questions
Does Etsy charge GST/HST on fees if I'm registered?
Yes, on all seller fees. Adding your GST/HST number to Etsy doesn't stop it. In fact registering adds GST/HST to transaction and payment processing fees, which unregistered sellers don't pay tax on for orders where Etsy collected from the buyer.
Can I claim back the GST/HST Etsy charges on fees?
Usually, if you're registered and use the regular method. The fees are a business expense, so the GST/HST on them is an input tax credit. You claim it on line 106 of your GST/HST return, as long as you have the records the CRA requires.
Can I claim GST/HST on Etsy fees with the Quick Method?
No. Quick Method filers can't claim input tax credits on operating expenses, and Etsy fees are operating expenses. The Quick Method remittance rates already allow for the tax you pay on them.
How far back can I claim GST/HST on Etsy fees?
For most registrants, about four years. You have until the due date of the return for the last reporting period that ends within four years after the period in which you could first have claimed the credit. Missed credits go on a later return's line 106.
More guides
- How Etsy handles GST/HST for registered sellersWhat changes on Etsy once you add your GST/HST number, and the double-tax mistake to avoid.
- How to back out HST from tax-included pricesThe CRA's tax fraction, worked examples for every rate, and why per-order rounding matters.
- GST/HST filing deadlines for annual filersWhen annual filers pay and file, instalments, and the e-filing rule that catches people out.
Have your Etsy exports?
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