Etsy Sales Rate Tax Setup
Etsy does NOT make it easy to collect Sales Taxes. If you live in a state (many of them) that do not collect a flat rate of sales tax, in order to collect and remit appropriate sales tax – you will need to set up rates by zip code. Etsy does NOT automate any part of this.
I’ve developed a custom method of semi-automating this entry, and I offer this as a service. Depending on your state (which would determine how long this script may run for), some states may require thousands of zip codes to be otherwise hand-keyed.
If you do a particularly large amount of sales within your own state, this may be very necessary to ensure you do not undercollect.
Can I just enter the highest rate in my state?
Absolutely not, this would be illegal. To collect a rate labeled as a sales tax and not remit it as a sales tax is illegal and ill-advised.
What else can I do?
You can hand-key the zipcodes yourself, for some states, we’ve heard of this taking days.
You can under-collect. The state does not require you to charge the customer sales tax, it requires the sales tax to be remitted to the state. Because it is illegal to over-collect, you can instead under-collect, and enter a statewide rate that represents the lowest rate within your state. When you file your Sales Tax you’ll need to make up the difference with money out of your pocket.
Or, simply hire me to enter these rates for you. Depending on your state, this service is never more than $75. Contact me.