Etsy regulatory operating fee (canada) — Canadian seller guide
What the Etsy regulatory operating fee (canada) is for a Canadian shop, what Etsy says it costs, and where it can show up on your T2125.
| Fee | Regulatory Operating fee (Canada) |
|---|---|
| What Etsy says it costs | 0.50% for sellers in Canada |
| CraftLedger default T2125 line | Line 8871 – Management and administration fees |
Details from Etsy
- Charged on the item price plus shipping cost and gift wrap / personalization, if applicable. [Etsy Help]
- Etsy's fees page says it excludes tax collected by Etsy. [Etsy Help]
- Etsy introduced it after the cost of doing business in some countries increased with new regulations. [Etsy Help]
Is it deductible?
- CRA lists 'costs from using a platform to sell products' as an example of an eligible expense for peer-to-peer sellers, along with marketing costs to increase traffic to your online store and the cost of materials such as wood, wool, paint and beads. [Taxes in the platform economy]
- Enter only the business part of expenses on Form T2125; personal expenses are not deductible. [Expenses]
CRA describes line 8871 (Management and administration fees) like this: “You can deduct management and administration fees including bank charges incurred to run your business.” [Expenses] CraftLedger places this fee there by default; CRA does not publish an Etsy-specific line mapping.
Etsy fee estimator for a Canadian shop
Rates: [Etsy Help] [Etsy Help] [Etsy Help]. Estimate only; your Etsy Payment account is the record.
Turn your Etsy CSVs into a T2125 summary in your browser
CraftLedger reads your Etsy Monthly Statement and Sold Orders CSVs locally (nothing uploaded), totals gross sales and fees, groups fees by T2125 line, and tracks the $30,000 small-supplier threshold by quarter. Free preview; CA$29 per tax year for the full export.
Try the free preview Get the tax-year pass (CA$29)Frequently asked questions
How much is the Etsy regulatory operating fee (canada) in Canada?
Etsy's help centre says: 0.50% for sellers in Canada. (Checked October 29, 2026.)
Can I deduct the Etsy regulatory operating fee (canada)?
CRA lists costs from using a platform to sell products as an example of an eligible expense for peer-to-peer sellers. Enter only the business part of expenses on Form T2125.
Which T2125 line does the Etsy regulatory operating fee (canada) go on?
CRA does not publish an Etsy-specific mapping. CraftLedger groups this fee on line 8871 (Management and administration fees) by default; confirm the treatment with a tax professional.
