Etsy Announces New Fees for Canadian Sellers
In an email sent to sellers July 16, Etsy announced Regulatory Operating Fees for Canadians. This fee has always been one of Etsy’s many fees that sellers on the platform are subject to, however Canada was subject to the Regulatory Operating Fee prior to August 15th.
Etsy sites new regulations in Canada as the main reason for introducing the fee, making it harder for Etsy to operate in Canada. This fee is the second fee introduced in 2024 to Canadians. (A new one-time setup fee of $15.00 USD was introduced sometime in early 2024).
Etsy explains the new fee of 1.15% is designed to help cover the costs of compliance with evolving regulations, particularly in areas like data protection and consumer rights. Canada passed introduced a Digital Services Tax on June 28 2024, imposing a 3% tax on digital services such for those whose revenue exceeds $20 million from services provided digitally. This would include things like online marketing, streaming, and online marketplaces. Because of how Etsy operates in Canada, they would now be subject to this tax and have passed on the cost to sellers in Canada.
Like all seller fees on Etsy, they are subject to local taxes. The only sellers exempt
