We're happy to announce that the much-anticipated new Checkout will support collecting sales tax.
Important: If you would like to collect sales tax from buyers who use the new Checkout, please set your rates by 12 a.m. ET, Thursday, August 26.
You can go to http://www.etsy.com/your/taxsettings to set tax rates for U.S. states, Canadian provinces, and countries where you would like to collect sales tax. You can also indicate whether the tax rate for each region should apply to shipping charges.
The sales tax settings only apply to the new Checkout, so they won't affect orders until we ramp up the new Checkout late this week. We're launching the tax settings in advance so you have time to set your tax rates before we start to roll out the new Checkout.
While we ramp up the new Checkout, many shoppers will continue to use the old Checkout. We won't apply sales tax to orders that use the old Checkout. However, if you have sales tax settings at PayPal, PayPal will continue to apply those settings to orders processed through the old Checkout.
If you have sales tax settings at PayPal, the new Checkout will ignore these settings, so there's no way your customers could be double taxed.
We'll keep you updated when we start to roll out the new Checkout.