Etsy sellers frustrated by company’s confusing approach to new sales-tax law

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Sellers on Etsy have increasingly complained about how the company has responded to the new federal law meant to ensure digital platforms are charging sales tax to their Canadian customers

The federal government announced the policy in late 2020, and it took effect July 1, 2021. Platforms were given a grace period of 12 months to implement it. Different companies took different tacks: For instance, Amazon lets merchants on its marketplace collect and remit taxes on the items they sell, while eBay’s centralized approach collects and remits tax on behalf of sellers.Etsy’s first communication with sellers on its new rules was on May 31, a month before the deadline to comply.

This approach has left many sellers baffled, said Cindy Baldassi, who makes and sells stone jewellery and accessories in Calgary and coaches other entrepreneurs about e-commerce. “All of your expenses, roll them into the price, and it’ll all work out, that is their logic,” Ms. Baldassi said.boycotted

 

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GlobeSmallBiz Any tax related change creates uncertainty. Creates worry. Distracts from doing the actual business. Unless it's a tax reduction law. But I haven't heard of one.

What an absolute nightmare.

Man. Etsy has no explanation, no solution - it's an abuse. And it leaves only one defense; to block fellow Canadians from purchasing. So- at festivals and shows- hand out cards with your own site- or home .

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