Etsy is required to collect and remit sales taxes on behalf of its sellers in most states.
To grant sales tax exemptions for Printify merchants using Etsy and avoid double-taxing, we will need to receive a confirmation from you regarding the sales tax collection performed by Etsy on your behalf. In late September, we will ask you to fill in the necessary legal information (such as the legal business name and address) and electronically sign the document - this will confirm that you only make purchases from Printify for resale purposes and that Etsy is collecting your required sales tax.
Therefore, if you are selling on Etsy and we will have received the required confirmation from you, Printify will not apply sales tax on your Etsy orders.
Please note that it won't be possible to apply sales tax exemption on orders that have been created manually - we recommend that you use Manual Order Approval Settings on imported Etsy orders instead.