Canadian Etsy seller tax FAQ
Short answers, each based on a CRA or Etsy page. Follow the links in each guide for sources.
$30,000 small-supplier checker
Enter your total taxable sales (all businesses, worldwide, before expenses) for your last four calendar quarters.
Rules: [Canada.ca]
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
What is the GST/HST small-supplier threshold for Etsy sellers?
For most businesses CRA uses $30,000 in taxable supplies over four consecutive calendar quarters, or within a single calendar quarter. Below it you do not have to register.
Does Etsy collect GST/HST on my Canadian sales?
Etsy says that since July 1, 2022 it collects GST/HST on eligible orders from Canadian shoppers. If you add a GST/HST ID, Etsy stops collecting it on physical goods and you handle it yourself.
What are Etsy fees in Canada?
Per Etsy: US$0.20 listing fee, 6.5% transaction fee, payment processing of 3% + CA$0.25 (domestic or US orders) or 4% + CA$0.25 (international), 0.50% Regulatory Operating fee, and Offsite Ads at 15% or 12% when applicable.
Which form do Etsy sellers use for income tax?
CRA says to report peer-to-peer sales income, naming Etsy among platforms, as self-employment income on Form T2125.
Can I deduct Etsy fees?
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.
Does Etsy report my sales to the CRA?
Canada's Part XX rules (in force January 1, 2024) require certain platform operators to report seller information, including for sellers of goods, to the CRA annually, and to give sellers their information by January 31 of the following year.
When is my 2026 return due if I sell on Etsy?
CRA lists June 15, 2027 for self-employed individuals to file, with any balance owing due April 30, 2027.
What is the HST rate in Ontario and Nova Scotia?
CRA's table lists 13% HST in Ontario and 14% in Nova Scotia (decreased from 15% as of April 1, 2025).
Is this tax advice?
No. This site summarizes public CRA and Etsy information. Confirm your situation with the CRA or a qualified tax professional.
