Overview
State sales tax are determined by:
The buyer's shipping location (state) and the seller's categorization (taxonomy) of the listing.
Where can sellers update legal name or taxpayer ID?
In shop from the Legal and tax information page.
Some sellers may be required to pay tax on any profit they make if they sell:
physical or digital goods
What is the meaning of VAT?
value-added tax
What is a payment Processing?
The handling of transactions through credit card companies and banks.
What is Etsy's Responsibility ?
To calculate, collect, and remit in states with applicable tax laws.
What has to match if they update the bank information?
The name on their bank account must match the name or business entity you have provided.
What are the examples of digital items:
How is also vat known?
as JCT, GST, HST, SST, PST, RST or QST in some countries.
Seller Support assists members with: mention two at least
Where we can direct sellers to information and tools to answer their questions regarding taxes?
What is the meaning of SSN?
Social Security Number (SSN)
Buyers from where will be charged on VAT for digital items: mention three at least
Buyers in Australia, Belarus, Chile, the EU, Georgia (country), Iceland, India, Indonesia, Kenya, Malaysia, Mexico, Moldova, New Zealand, Norway, Russia, Saudi Arabia, Serbia, Singapore, South Africa, South Korea, Switzerland, Taiwan, Thailand, Türkiye, Ukraine, United Arab Emirates, or Vietnam will be charged VAT.
Will Etsy be required to collect VAT on seller fees accrued each month ?
Depending on their business status and location
Buyer Support assists members with: mention one at least
What are the basic facts that we know about the circumstances in a given state that we can share to members?
1. whether a state has passed laws that apply to online sales, 2. what type(s) of laws have been passed and who they apply to, 3. Etsy's obligation (if any), 4. threshold information.
Troubleshooting steps
Are sellers responsible for adding VAT to their digital listing prices?
No
For shops based on Canada when VAT invoices will appear?
On the first of each month for the previous month’s statement.
Macro that we can use to mention that we do not offer tax or legal advise
Macro Seller > Shop > Cannot offer tax or legal advice
When sales tax might be applied to an exempt item or not applied when the seller thinks it should have been?
Where members can contact to confirm the correct taxpayer information?
Contact the IRS
As of when Etsy collects certain information in respect of EU sellers and report this information to the EU government in accordance with tax law.
As of January 1, 2023
Etsy provides downloadable VAT invoices to sellers in: mention three at least
Armenia, Australia, Belarus, Chile, Colombia, Egypt, the EU (excluding Ireland), Georgia (country), Iceland, India, Kazakhstan, Malaysia, Moldova, New Zealand, Norway, Peru, Saudi Arabia, Singapore, South Korea, Taiwan, Tanzania, Thailand, Türkiye, Uganda, the UK, Ukraine, United Arab Emirates, and Uzbekistan.
Who can use the sales tax tool?
Sellers based in the United States