Home Tax informationGlobal sales: everything you need to know about Hotmart's business model updates

Find your question in the Help Center

Global sales: everything you need to know about Hotmart's business model updates

Starting on July 1, 2024, Hotmart will act as an agent for creators in some countries, representing them to buyers, cocreators and affiliates. This change is the result of updates to Hotmart's business model that will apply regardless of the creator's location.
These updates will give you more autonomy and flexibility in developing your business strategies, increasing your decision-making power and potentially bringing more benefits, such as:

  • Tax management: Manage the tax aspects of your business to better control your sales and cash flow and potentially grow your business;
  • Product classification: Determine the nature of your product (e.g., educational products, live interaction, etc.) to potentially benefit from tax regimes and exemptions that may be applicable to some creators, companies and/or products.

With the updates to the business model, you'll be responsible for determining the taxes on sales made in the countries in which you do business. In other words:

As a creator, you'll have a direct relationship with your buyers and will be responsible for tax assessment and calculation (knowing if and how much tax to pay), tax collection, remittance (tax payment), and invoicing for each sale made. On the other hand, in your relationship with Hotmart, you will receive invoices related to our service fees.

As a cocreator or affiliate, you'll have a direct relationship with the creator you work with and continue to be responsible for any taxes that may apply to you and your services.


We understand that this topic can be complex, so we've created an article that explains the scenarios in which Hotmart remains responsible for tax management and others in which the product creator assumes responsibility. For example, in some regions, tax regulations related to sales through platforms such as Hotmart stipulate that Hotmart must still manage the taxes and issue invoices for each sale.
We also have an article with information on how to integrate Hotmart with platforms that specialize in invoicing.

We have also compiled a list of frequently asked questions regarding our business model and categorized them for easy navigation. To access the information you need, simply click on the question, and the corresponding answer will be displayed:

 

Questions related to business model updates and first steps

What are the benefits of updating the business model?

Updating the business model can provide creators the autonomy and flexibility to develop business strategies, enhancing their decision-making ability. Additionally, it can improve control over sales, cash flow management, and determination of the nature of the product, which can potentially result in tax deductions and exemptions.

What are my responsibilities in this new business model?

Creators are responsible for calculating, reporting, and paying taxes, as well as invoicing each sale. As a creator, your tax obligations will vary depending on the tax laws applicable to the sale, taking into account the country in which your account is based and the country of the buyer. For more information on which regions will be impacted, see this article. In other regions, in accordance with local tax laws, Hotmart may manage taxes and invoicing for buyers.

Cocreators or affiliates will have a direct relationship with the creator with whom they work, and will remain responsible for taking care of tax issues that may apply to them and their services, such as issuing invoices for the services provided to the creator.

Who will be affected by the business model changes?

All the countries Hotmart sells to will be included in this model update.

Is it possible to keep using the current business model?

The business model change will be global and apply to all sales made on Hotmart in accordance with the tax rules and scenarios discussed in this article. This means that all creators using our platform will have to make some adjustments depending on where they are located and/or sell their products. It should be noted that the change does not apply to local sales made in Brazil, i.e., made by product creators in Brazil to buyers in Brazil.

 How should I prepare for the upcoming business model updates on July 1, 2024?

Creators, cocreators, and affiliates are advised to consult with their accountants and lawyers to understand their accounting and tax obligations in each country where they provide services and sell products. It is essential to remember that tax rules vary, depending on the location of the creator, the buyer, the product sold and other aspects.
To prepare, it is important to know the location of your buyers and, with the help of an accounting expert, determine the countries where your products will be subject to taxes and the corresponding tax obligations that arise from these sales.
For more information on which sales scenarios require some adjustments and how to determine the country in which your sales were made, please read the article Global sales: tax responsibilities for sales made on Hotmart.

Will these changes impact sales made in Brazil?

Sales made by creators in Brazil, in Brazilian Reais, will continue as usual, as these transactions already have Hotmart in an agent role. However, please note that if the creator lives in Brazil but the buyer resides in a country other than Brazil, the sale will be considered international and will therefore be subject to the changes mentioned. For more information on applicable taxes in Brazil, click here (available in Portuguese).

Do I need to open a company in the countries I do business in?

Not necessarily. Making a sale to customers in different countries does not necessarily require setting up a company, but there may be applicable taxes, such as VAT (Value Added Tax) on digital products.
It is important to understand the tax implications of selling digital products and to check whether the product you sell is taxable in the buyer's country. We recommend consulting an expert on this matter. In addition to compliance obligations, there may be exemptions applicable to your case.

Are there accountants or tax advisors with sales expertise that I can consult?

Hotmart PRO (BETA) is a marketplace where creators can hire specialists in Paid Traffic, Product Launches, Copywriting, Design, Sales Recovery, and Accounting to help manage and grow their digital business. Currently, Hotmart PRO is only available to creators in Brazil.

How can I find out more about the changes to Hotmart's business model?

We are actively working on producing content and solutions to help you adapt to the updates in our business model, including partnering with experts to provide additional support. More details on this subject will be shared soon, so you can make the adjustments to your business smoothly. Additionally, it is essential to review Hotmart’s General Terms of Use and General Payment Policy, which will be updated soon to reflect these changes.

How will this impact contracts that are currently in force?

The Terms of Use and Policies of the platform will be updated to reflect the change in business model. However, any specific terms agreed upon in partnership contracts will remain unchanged.

 

Questions related to applicable taxes

How can Hotmart’s business model updates impact me tax-wise?

Our business model is adapting to support global sales. This means creators, co-creators, and affiliates must provide their sales information to the relevant local tax authorities, as it is already done in Brazil. For more information, see the article Global sales: tax responsibilities for sales made on Hotmart.

Is it necessary to seek tax advice to deal with these changes?

We strongly recommend seeking tax advice to fully understand how to proceed with these updates to our business model, analyzing their impact on your context, and tailoring them to your specific needs. Please note that you are responsible for the tax aspects of your business, and you must ensure that all processes, including the issuing of invoices, comply with legal and tax regulations.

Will Hotmart provide tax consultant support for its users?

The Hotmart platform hosts products and facilitates sales. It is not responsible for providing tax advice to users.

Will taxes be applied for each sale?

Sales of digital products are generally subject to VAT based on the buyer's country, regardless of the creator's location. We recommend consulting your accountant to confirm whether these exemptions apply to your product. Any questions regarding other taxes, such as income tax, should also be directed to your accountant.

What are the applicable taxes by country, and how should I file my tax return, considering the updated business model?

For questions like these, we recommend that you consult with your accountant or lawyer for advice and assistance with your strategy.

How does this change affect taxes for individuals starting a business in the USA or other countries?

There are no specific impacts for creators in any particular country. It is essential to understand the tax regulations for digital products, particularly in the markets where you sell.

Which tax structure best suits the updated business model?

We recommend you seek advice and assistance from your accountant or lawyer to develop your strategy.

As a creator, am I required to pay taxes related to my affiliates?

Hotmart recommends seeking support and guidance from tax advisors or accountants regarding payment to affiliates and the taxes involved in this relationship.

Is it possible to download the invoices related to payments made to my affiliates for reporting purposes?

There is a specific report located in Sales > Reports > Payments to Affiliates which contains details of your affiliates such as: first name, last name, document (Tax ID), country, address, number of sales and the sum of commissions from sales made, paid to the affiliate that will help you generate invoices.
ATTENTION: The details of the amount to be declared must be confirmed between the creator and their accountant.

What amount should I use in my invoice for a product priced at US$ 1000 + VAT?

Creators, with the support of an accountant, must define the optimal pricing strategy, considering their responsibility for tax collection and payment. Invoices can be issued and sent through our native integrations or in any manner preferred by the creator.

 

Questions related to invoicing for sales made in other countries

I've made a sale to a buyer in another country. Do I have to issue an invoice from the buyer's country, even if my company is not based there?

The obligation to issue an invoice depends, among other requirements, on your location and the product you sell, and the information contained in each invoice may vary according to local rules. We recommend consulting an expert to understand the obligations related to the countries in which you make sales.

Which platforms can I use to issue invoices for my sales?

Hotmart has native integrations with Alegra, a Colombian platform specializing in invoicing and accounting that serves Colombia and Mexico, and eNotas, which serves Brazil. You can also use sales reports and integrate via API with other tools.
See the possibilities available for issuing invoices in the article Global sales: accounting & tax solutions.

How will currency conversion be carried out for invoices in other currencies?

Hotmart provides sales data based on the currency used in the transaction, but does not offer currency conversion. When issuing the invoice, creators will be able to view both the original value and the converted value.

 

Questions related to sales, withdrawals and commissions

Is it possible to block sales to a specific country?

No, there is no feature to block sales by country.

How should I adjust my product pricing to account the applicable taxes of the countries I sell to?

Creators are responsible for developing the optimal pricing strategy, considering that they are now responsible for collecting and paying taxes on sales made, if the product is taxable in that country.

Will there be any impact on chargeback and refund processes? Can I refuse refund requests during the guarantee period?

No, the processes remain unchanged.

Will commissions for cocreators remain the same?

Yes, commissions for cocreators will remain unchanged and will continue to be based on the percentages defined by the creator.

Will the changes to Hotmart's business model affect commission payouts?

As of January, we have started the automatic monthly transfer of all commissions from your international sales or sales in currencies other than BRL to the bank account you have registered on our platform. This transfer is made without any withdrawal fees.
Please note that the process for receiving commissions for sales made in Brazil, in Brazilian Reais, remains unchanged. For further information, please refer to this article.

Do you need to talk to us?

If you have any further questions, please contact us and we'll get back to you as soon as possible