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Wed Apr 28 2021 10:39:29

Seller Baffled by How Etsy Handled Sales Tax in Issuing Refund

By: Reader

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Dear Ina,
A buyer on Etsy contacted me and asked me if he could return an item for a refund as he no longer needed it. I stated that this would be fine. The buyer returned the item. I processed the refund for the sales prices of the item minus the outbound and return shipping.

When I clicked to proceed, I got a new amount which was the item amount that I processed, but now with the tax that Etsy collected and a message that this was the amount that would be charged to my credit card. To make the refund go through I had no choice but to accept this.

Since Etsy collects the tax, and remits the tax, and the taxed amount was never a part of my profit, I am wondering why Etsy would charge me for the tax as part of the refund. I messaged Etsy but first received a generic response and the follow-up was bot-like options for self-service. 

None of those options were of help to me and as of today no one in Etsy customer service has actually addressed the actual problem or explained to me why I was debited for the original tax that Etsy collected. To me it sounds like Etsy keeps the tax, but it is obvious that I refunded the buyer for the tax that he paid.

Perhaps another seller can weigh in on what is going on here. Perhaps I will be credited by Etsy. I simply do not know. Since Etsy collects and remits the tax, I do not understand why I would be debited for the tax when I process a refund. 

I am also a bit disappointed that Etsy Customer Service is not staffed so that sellers' questions or issues are handled properly. Generic responses are useless.

Name withheld for fear of retaliation



Comments (9) | Permalink

Readers Comments

Perminate Link for Seller Baffled by How Etsy Handled Sales Tax in Is   Seller Baffled by How Etsy Handled Sales Tax in Is

by: pace306 This user has validated their user name.

Wed Apr 28 13:06:56 2021

Simple theft.

They kept the tax

Perminate Link for Seller Baffled by How Etsy Handled Sales Tax in Is   Seller Baffled by How Etsy Handled Sales Tax in Is

by: RL15 This user has validated their user name.

Wed Apr 28 13:31:08 2021

people on Etsy always seem to forget that the ceo came from fleecebay.

Perminate Link for Seller Baffled by How Etsy Handled Sales Tax in Is   Seller Baffled by How Etsy Handled Sales Tax in Is

This user has validated their user name. by: The End

Wed Apr 28 13:54:38 2021

Etsy is CROOKED.
Use Etsy.
Don't let Etsy use you.

Perminate Link for Seller Baffled by How Etsy Handled Sales Tax in Is   Seller Baffled by How Etsy Handled Sales Tax in Is

by: Fizzlecat3 This user has validated their user name.

Thu Apr 29 00:41:45 2021

Etsy always gives those generic bot messages. Most of the time they never bother to contact the seller to resolve the issue. There is NO seller support from Etsy anymore. It simply doesn't exist. If you are lucky enough to be contacted, the customer support staff never are able to handle any issue and have to refer you to someone else and you go back in the cue. Good luck.  

Perminate Link for Seller Baffled by How Etsy Handled Sales Tax in Is   Seller Baffled by How Etsy Handled Sales Tax in Is

by: Eagle This user has validated their user name.

Thu Apr 29 00:51:53 2021

That's one of many reasons we shutdown our Etsy store. What finally made me shutdown was it cost me an extra $15 out of my pocket on top of the cost the buyer paid to give customer refund. It's a lose - lose situation to sell on Etsy if you want to keep the customer happy.

Perminate Link for Seller Baffled by How Etsy Handled Sales Tax in Is   Seller Baffled by How Etsy Handled Sales Tax in Is

by: postbuster This user has validated their user name.

Thu Apr 29 16:17:32 2021

Makes me wonder if this 'charge' could be considered tax fraud.

Considering the notion that the amount collected is in regards to tax of a sale and is now negated, what warrants the charge to the seller?
It's the buyer who pays the tax, and therefore not the sellers responsibility to collect for the tax.
The advocate is responsible.

Keep up the bad work etsy.
We all cant wait to see you go down.

Perminate Link for Seller Baffled by How Etsy Handled Sales Tax in Is   Seller Baffled by How Etsy Handled Sales Tax in Is

This user has validated their user name. by: The End

Thu Apr 29 19:20:22 2021

Dear postbuster ;
"Makes me wonder if this 'charge' could be considered tax fraud."
It absolutely is.
"Etsy" (I put it in quotes because it's really Josh Silverman we're talking about) is engaging in fraud of almost every description.
"Etsy" knows Government Law Enforcement isn't looking or paying any attention.
That makes it a 2 way street right now.
Sellers can get REAL Creative in advertising their websites the Old Fashioned Way   :o)
"Etsy" can't do a damn thing. They don't want any UNwanted attention.
They've backed themselves into a corner.
So, IT'S OPEN SEASON ON "Etsy"  ! ! !

Perminate Link for Seller Baffled by How Etsy Handled Sales Tax in Is   Seller Baffled by How Etsy Handled Sales Tax in Is

by: postbuster This user has validated their user name.

Sat May 1 08:26:17 2021

Dear TheEnd,

Great insight!  And commentary.

Sadly, this will be very fun to watch because of how they treat those they depend on.  
Hopefully, they all get found for their corruption so these rats don't get away to ruin other businesses like they normally do.

In the past, some people told the CEO's of today that one day they would run something big.  I hope that those people sorely, SORELY regret telling them that.

Perminate Link for Seller Baffled by How Etsy Handled Sales Tax in Is   Seller Baffled by How Etsy Handled Sales Tax in Is

This user has validated their user name. by: The End

Mon May 3 18:30:27 2021

How do you open a Small Business ?
Open a Big One then wait........



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