I have set up my shop to charge CA state sales tax because I live in CA. I just made a sale to a person in Hawaii. Etsy did not calculate the amount of the sales tax for the buyer. When I emailed Etsy to find out why, they sent me an email that stated: "Sales tax will only be applied to states or countries the item is being shipped to. For example, if you collect taxes for the state of California, then the site will only charge tax transactions being shipped to California. Because the item you shipped went to Hawaii there was no sales tax incurred." This makes absolutely no sense. When I sell something from here, I charge sales tax, because the State of California wants their money. If you used Etsy's logic, you'd have to know the tax of every single state and country in the world in order to set up your account........and how could you possiby know where a buyer is from in advance?
Interestingly, the email contained PayPal's phone number, but not theirs. When I asked for a phone number to talk to someone, I was told: "Unfortunately, we're not equipped to offer phone support at this time. If you would like further information regarding sales tax in your state, you will need to get in touch with an accountant. They should be able to provide you with the information that you're looking for".
Aaargh. Has anyone else had this problem? Am I missing something?