Canadian Etsy sellers pay the same $0.20 listing fee and 6.5% transaction fee as US sellers, plus 3% + $0.25 CAD for payment processing. The differences: Etsy charges GST/HST on its fees (5% to 15% on top), the 2.5% currency conversion fee bites hard if your listing currency does not match your bank, and at CAD$30,000 in sales you must register for GST/HST and start charging it.
Most Canadian sellers leak 2 to 5 percent of revenue to currency conversion, untracked GST input credits, or missed registration thresholds. Set up correctly from the start and the leak does not happen.
Most Etsy fee content is written for US sellers. The basic fees translate, but Canadian sellers face three additional layers: Etsy charges GST/HST on its fees as of 2022, currency conversion can quietly erode margins, and Canadian tax rules require GST/HST registration at a different threshold than US sales tax. This article covers what is actually different about selling on Etsy from Canada.
The fee structure for Canadian sellers
The fees Canadian sellers pay are essentially the same as US sellers, with one wrinkle: Etsy charges Canadian sales tax on its fees.
| Fee | Rate | Notes |
|---|---|---|
| Listing fee | $0.20 USD | Per item sold or renewed |
| Transaction fee | 6.5% | On item + shipping + gift wrap |
| Payment processing | 3% + $0.25 CAD | When using Etsy Payments |
| Offsite Ads (under $10k USD/yr) | 15% | Optional, can opt out |
| Offsite Ads (over $10k USD/yr) | 12% | Mandatory, no opt-out |
| Currency conversion | 2.5% | If listing currency does not match payment currency |
| GST on fees (national) | 5% | Charged on top of every Etsy fee |
| HST or QST on fees (provincial) | 0 to 10% | Varies by province |
The provincial tax on Etsy's fees varies meaningfully. Sellers in Ontario, New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island pay HST on Etsy fees (13 to 15 percent combined GST + provincial). Sellers in Alberta, the territories, and Saskatchewan (non-PST on services) pay only 5 percent GST. Quebec sellers pay GST plus QST, combined 14.975 percent. This is real money on a year of fees.
A worked example: Alberta seller vs Ontario seller
Same product, same buyer, two Canadian sellers. Each one CAD$1,000 a month in gross sales. Their Etsy fees and applied taxes:
| Alberta seller | Ontario seller | |
|---|---|---|
| Monthly gross sales | $1,000 | $1,000 |
| Etsy core fees (~11%) | $110 | $110 |
| Tax on Etsy fees | $5.50 (5% GST) | $14.30 (13% HST) |
| Total fee load | $115.50 | $124.30 |
| Annual | $1,386 | $1,492 |
The Ontario seller pays about $106 more per year just on the provincial tax applied to Etsy's fees. If they are GST/HST registered, they can claim this back as an input tax credit. If they are not registered (under $30k in sales), the money is gone.
The currency conversion trap
Etsy charges 2.5 percent to convert between currencies. The fee applies when your listing currency differs from your payment account currency. Canadian sellers run into this in two ways:
- Listing in USD, paid in CAD. A common mistake by sellers who think listing in USD attracts more US buyers. Every sale gets converted USD to CAD, losing 2.5 percent off the top.
- Listing in CAD, paid in CAD, but Etsy's fees are charged in USD. No conversion fee here, but the USD listing fee and other USD-denominated fees are converted to CAD at Etsy's rates, which include a spread.
The right setup for most Canadian sellers: list in CAD, set payment account to CAD, deposit to a Canadian bank account in CAD. No currency conversion on sales. The USD-denominated fees are small enough that the conversion impact on them is negligible.
The exception: if more than 70 percent of your sales come from US buyers (check your shop stats), listing in USD may improve conversion rates because US buyers see prices in their home currency. Run the math. For most Canadian sellers, the 2.5 percent conversion fee on all sales costs more than the marginal US buyer uplift gains.
The CAD$30,000 GST/HST registration threshold
This is the Canadian equivalent of the US $10k Offsite Ads threshold, but more consequential. If your worldwide gross sales (across all channels, not just Etsy) exceed CAD$30,000 in any rolling 12-month period, you are required to register for GST/HST with the CRA and start charging it on your taxable Canadian sales.
| Your sales (12 months) | GST/HST registration | Action needed |
|---|---|---|
| Under CAD$30,000 | Optional (small supplier) | Can register voluntarily for ITC benefits |
| Crossing CAD$30,000 | Required within 29 days | Register with CRA, start charging GST/HST |
| Over CAD$30,000 | Required | Quarterly or annual GST/HST returns |
Many Etsy sellers cross this threshold without realizing it. The CRA can assess back taxes, interest, and penalties for sales after the threshold was crossed but before registration. Track your trailing 12-month gross sales every month if you are anywhere near $20,000 in annual revenue.
The non-obvious benefit of voluntary registration before you hit the threshold: as a GST/HST registrant, you can claim input tax credits (ITCs) on the GST/HST you pay on business expenses, including Etsy's fees. For an active seller paying $1,500 a year in tax on Etsy fees, that is $1,500 you get back at tax time. For lower-volume sellers, registration adds filing complexity that may not be worth the ITC value.
Tax filing: T2125 and what to track
Etsy income is reported as self-employment income on T2125 (Statement of Business or Professional Activities), attached to your T1 personal return. To file it accurately, you need to track:
- Gross revenue: total sales in CAD, before any deductions
- Etsy fees paid: all of them, including the GST/HST charged on those fees
- Materials and supplies: cost of goods sold
- Shipping costs: your postage and packaging
- Home office, equipment, software: deductible business expenses
- Vehicle expenses (if relevant): trips to the post office, supply runs
Etsy provides a downloadable annual statement under Shop Manager → Finances → Monthly Statements that consolidates all of this. Pull it down at the end of each year. It is the single most useful document for tax filing.
Calculate your true Canadian-seller margin
Set the calculator country to Canada and run your numbers. The 3% + $0.25 CAD payment processing is built in. Add a manual 1 to 1.5 percent buffer if you want to model the tax-on-fees impact.
Open the calculator →Three things every Canadian Etsy seller should do
- Set your listing currency to CAD and your bank account to CAD. Stops the 2.5% currency conversion fee on every sale. Five-minute change in Shop Settings.
- Track your trailing 12-month gross sales monthly. If you are approaching CAD$30,000, you must register for GST/HST. Crossing accidentally has tax consequences.
- Download your Etsy annual statement at tax time. Under Shop Manager → Finances → Monthly Statements → Generate full-year statement. Saves hours at tax time.
Common questions
What fees does Etsy charge Canadian sellers?
Canadian Etsy sellers pay the same core fees as US sellers: a $0.20 USD listing fee, a 6.5% transaction fee on the total order, and a 3% + $0.25 CAD payment processing fee when using Etsy Payments. Etsy also charges GST plus the applicable provincial tax (HST or QST) on its fees to Canadian sellers.
Does Etsy charge GST on its fees in Canada?
Yes. As of mid-2022, Etsy charges GST and applicable provincial sales tax on its fees to Canadian sellers. This is roughly 5% GST in non-HST provinces, 13% to 15% in HST provinces, and 14.975% combined in Quebec. If you are GST/HST registered, you can claim these as input tax credits.
Should Canadian sellers list in CAD or USD on Etsy?
List in the same currency as your payment account to avoid the 2.5% currency conversion fee on every sale. Most Canadian sellers should set both to CAD. The exception is sellers targeting primarily US buyers, where listing in USD may improve discoverability, but the conversion fee adds up quickly.
How do Canadian Etsy sellers file taxes?
Etsy income is self-employment income, reported on T2125 attached to your T1 personal return. If your gross sales exceed CAD$30,000 in any rolling 12-month period, you must register for GST/HST and start charging it on Canadian sales. Below that threshold, registration is optional but allows you to claim input tax credits.
Do Canadian sellers pay Offsite Ads fees?
Yes. Offsite Ads applies to Canadian sellers on the same terms as US sellers: 15% on attributed orders if your shop earns under USD$10,000 in trailing 12 months (with opt-out), or 12% if your shop earns USD$10,000 or more (mandatory). The fee is calculated in CAD if your shop currency is CAD.