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

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.

These changes will initially apply to sales made in Colombia, regardless of where the creators are located. This model update will include all countries that Hotmart sells to by 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, including Colombia. 

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.

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).

Not necessarily. Selling to customers in Colombia does not necessarily require setting up a company, but there may be applicable taxes, such as VAT 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.

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.

We are working on creating content and solutions to help you adapt to the updates during November and December. We will also be 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.

The business model for global sales is being updated to align with the Brazilian scenario. This means that creators, cocreators, and affiliates must report the amounts due to the IRS to avoid discrepancies in values. 

The same process applies in Colombia. Failure to pay or declare taxes correctly may result in notification from the Colombian tax authorities. As a creator, you have the freedom to define and implement your tax strategy.

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.

Hotmart will only issue invoices for the fees related to platform services provided. To access these invoices, refer to the article on How to issue an Invoice report.

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

There is a specific report located in Sales > Reports > Affiliate Payments 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.

According to the tax legislation in force in Colombia as of December 11, 2023, sales transactions made by non-residents of Colombia to buyers located in Colombia are not subject to the issuance of e-invoices in Colombia. However, it is essential to confirm with your tax or accounting advisors the type of tax document that should be issued in this situation.

In general, it is necessary to issue a document, such as an invoice, to support the transaction. The document should contain relevant information, such as the value of the operation, date, description of the product or service sold, name and address of the seller, and name and address of the buyer.

Hotmart offers native integrations with Alegra, a Colombian platform that specializes in invoicing and accounting, and eNotas, which serves Colombia and Brazil. Additionally, you can use the sales reports available on the platform to integrate with other tools via API. 

For more information on available options for issuing invoices, please refer to the article Accounting & Tax Solutions.

Starting in January, commissions from international sales or sales in currencies other than BRL will be automatically transferred to your registered bank account on our platform 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.