Input tax credits and your T2125 expenses
Not tax advice. This page summarizes public CRA and Etsy information as read on October 29, 2026. Rules, rates and fees change, and your situation may differ. Confirm with the CRA or a qualified tax professional before filing. Not affiliated with Etsy, Inc. or the Canada Revenue Agency. "CraftLedger default line" means how the CraftLedger app groups a fee; it is not CRA guidance.
If you are registered and claim input tax credits, CRA wants the net amount on your T2125.
What CRA and Etsy say
- If you claim the GST/HST you paid as an input tax credit, CRA says to reduce the business expense by the amount of the input tax credit and enter the net figure. [Expenses]
- Deductible expenses include any GST/HST you incur on them, less the amount of any input tax credit claimed. [Expenses]
- Etsy says GST/HST-registered sellers are charged GST/HST on all seller fees, and suggests speaking with a tax accountant about whether you can reclaim tax charged on fees. [Etsy Help]
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
Do I include GST/HST in my T2125 expenses?
CRA says deductible expenses include GST/HST you incur less any input tax credit claimed, so if you claim an input tax credit you reduce the expense by that amount.
