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What taxes apply to my sale?

Hotmart follows the laws of the countries in which it operates. It’s important that whoever sells through Hotmart understands what taxes are applied on the transactions.

  • Argentina

In accordance with the AFIP (Administración Federal de Ingresos Públicos), as of December 1, 2021, purchases made from Argentine households on foreign sites may have the following taxes added:

  • 8% Impuesto PAIS (Impuesto para una Argentina Inclusiva y Solidaria);
  • 21% IVA (Impuesto al Valor Agregado);
  • 35% Impuesto a las Ganancias;
  • Impuesto sobre los Ingresos Brutos (IIBB), the amount of which varies depending on province. Check the amount applied in your province..

Important: the price you see on the product checkout page doesn’t include tax. You’ll see the tax on your credit card statement and, in the event of a refund, you’ll only be refunded the value of the product - the tax is retained by the government.

  • Australia

Following local tax laws, as of May 2021, Hotmart has begun to collect GST (Goods and Services Tax) on sales made to buyers in Australia.

The tax will be collected on all sales made to individuals at a 10% rate. For purchases made by companies, it will be possible to insert a valid Australian business number (ABN) with an active GST registration on the payment page to be exempt from charging.

GST is a federal tax in Australia and it must be collected without exception of product format, segment, payment method, currency, etc., whenever the purchase is made by a person who is located in the country. The location is determined automatically by the payment page, as well as the tax calculation.

GST collection on active recurrences

Subscription plans and other recurring payments (such as Smart Installments) for people in Australia made prior to the start of tax collection will also be taxed.

This means that, as of the GST collection start date, the recurring charges that we make will have the 10% tax embedded in the amount processed.

For example:

If you have customers in Australia on a USD $100.00 monthly subscription plan, without the GST tax you used to receive USD $100.00 with only Hotmart's service charges deducted.

With the start of GST collection, your subscription plan will continue with the same price to your customers, but the tax will be embedded in the amount, that is, the base amount to calculate your commission will not be USD $100.00, but USD $90. This prevents your current customers, already used to a price, from undergoing an unexpected adjustment, which can lead to cancellations.

What about new subscriptions?

For your new subscribers, the tax will be automatically included, that is, the person will pay the value of the product plus 10% of the GST.

However, in your plan settings, you will also be able to decide whether you want to embed the tax amount in the product price or not.

 

  • New Zealand

Following local tax laws, as of May 2022, Hotmart has begun to collect GST (Goods and Services Tax) on sales made to buyers in New Zealand.

The tax will be collected on all sales made to individuals at a 15% rate. For purchases made by companies, it will be possible to insert a IRD number (local tax identification number) are eligible for reverse-charge and Hotmart will not apply tax to them.

  • Canada (Quebec)

The QST is a tax in the province of Quebec and it must be collected without exception of product format, segment, payment method, currency, etc., whenever the purchase is made by a person who is located in this province. 

The determination of the location is made automatically on the payment page, as well as the calculation of the tax.

The tax will be collected on all sales made to individuals with a rate of 9.975%. For purchases made by companies, it will be possible to insert a valid QST number and be exempt from charging by the reverse charge mechanism.

What about subscription products?

Subscription plans and other recurring payments (such as Smart Installments) for people in Quebec prior to the start of the tax being collected will also be taxed.

This means that, from the date of the start of the collection of the QST, the recurring charges that we make will have the 9.975% tax embedded in the amount processed.

For example:

If the Creator has customers in Quebec on a monthly subscription plan of CAD 100.00, excluding the QST tax, they used to receive CAD 100.00 minus Hotmart's service charges.

With the start of QST, the subscription plan will continue at the same price to their customers, but the tax will be embedded in the amount; that is, the base amount to calculate the commission will not be CAD 100.00, but CAD 90.93. 

This prevents current customers, already expecting a certain price, from undergoing an unexpected adjustment, which can lead to cancellations.

What about new subscriptions?

For your new subscribers, by default, the tax will be passed on; that is, the person will pay the price of the product plus 9.975% for the QST.

However, in your plan settings, you will be able to decide whether or not you want to embed the tax amount in the product’s price.

 

Canada (Saskatchewan)

To comply with Canadian tax laws, Hotmart will begin collecting a tax called PST (Provincial Sales Taxes) in Saskatchewan. PST is a sales tax added to sales made in provinces where it is in force.

 

In Saskatchewan, PST is a 6% local sales tax for individuals that applies to taxable goods and services consumed or used within the province of Saskatchewan. For purchases made by companies, buyers can enter a PST ID, which is a 7-digit numerical document (PST-SK number) that, after being validated, will exempt them from paying the tax. 

 

Subscription plans and other recurring payments contracted by people residing in Saskatchewan prior to the start of tax collection will also be taxed.

  • From the start date of PST collection, recurring charges will have, in addition to federal tax, the addition of 6% deducted from the value of the product. 

 

United States

Following local tax laws, as of March 2022, Hotmart has begun begun collecting taxes in 3 states: Connecticut, New Jersey, and Texas.

 

How will this tax collection work? 

Whenever a buyer purchases a product in the abovementioned states, they’ll pay the respective taxes on the amount of the purchase:

 

Connecticut: 6.350%

New Jersey: 6.625%

Texas: 6.250%

 

When buyers access the Hotmart checkout page or select United States in the drop-down menu, our system automatically identifies their location via IP. If they are in one of the 3 states mentioned above, taxes will be applied to the final price of the product.

 

It's important to note that in the case of US tax, the percentage will always be added to the final amount of the product. That way, the creator's commissions are unaffected

 

  • Chile

Following local tax laws, as of August 10, 2021, Hotmart has started to collect the Chilean federal tax of IVA (Value Added Tax) on sales made to purchasers in Chile.

The tax will be collected on all sales made to individuals at a rate of 19%. For purchases made by companies, it will be possible to enter a valid RUT on the payment page and be exempt from the charge.

IVA is a Chilean federal tax and must be collected whenever the purchase is made by a person who is located in the country. The location is determined automatically on the payment page, as is the tax calculation.

 

IVA collection on active recurring payments

For recurring payments on sales made in Chile, the IVA tax will also be collected by Hotmart starting June 28, 2021, in compliance with local tax laws.  

The tax will be collected on all sales made to individuals at a rate of 19%.

 

How does this impact you?

Recurring payments made by customers in Chile, before the tax collection began, will also be taxed.

This means that, from the IVA collection start date forward, recurring charges will have the 19% tax built into the price.

 

For example:

If you have Chilean customers on a monthly subscription plan worth CLP 10,000.00, without IVA included, you used to receive CLP 10,000.00 minus Hotmart service fees.

With the start of IVA collection, your subscription plan will continue at the same price for your customers, but the tax will be built into the price, that is, the base value to calculate your commission will not be CLP 10,000.00 but CLP 8,100.008,403.36. This prevents your current customers, who are already used to a certain price, from suffering an unexpected adjustment, which can lead to cancellations.

 

What about new subscriptions?

For your new subscribers, by default, the tax will be charged. That is to say the buyer will pay the value of the product plus 19% IVA.

However, in your plan settings, you will be able to decide whether you want to embed the tax amount in the product price or not.

 

What is IVA (Impuesto al Valor Agregado)?

IVA is a Chilean federal tax and must be collected without exception of product format, segment, method of payment, currency, etc., whenever the purchase is made by a person who is located in the country. The location determination is done automatically by the payment page, as is the tax calculation.

 

The product may fall under the special tax regime in Chile:

  

  • If the Creator declares that their product has educational content, it’s possible that the country has specific rules for taxation. It’s worth mentioning that you are responsible for the accuracy of this information and that Hotmart may, at any time, request proof of this statement to see if your product complies with the requirements. To check if your product meets these requirements, access the tax collection section on your product's dashboard by clicking here;
  • If purchases are made by companies with a valid, verified RUT on the payment page.
  • Mexico

Purchases made in Mexico on foreign websites will have a 16% tax, according to the Impuesto al Valor Agregado law (VAT), which was implemented as of June 1, 2020.

The price that appears on the payment page for the customer includes taxes.

  • European Union

Taxes apply to purchases made in the EU on foreign websites. The amount may vary in each country, as each sets its own rates. We consider the standard rate for each country. You can find more information here.

The price that appears on the payment page for the customer includes taxes.

  • The United Kingdom

Purchases made in England, Scotland, Wales and Northern Ireland on foreign websites will be subject to a 20% tax. You can find more information here.

The price that appears on the payment page for customers already includes taxes.

Important: Hotmart automates the tax collection process.

These taxes do not imply a reduction in the Producer's commission. Taxes will be applied to the value of the product, which will increase the price for the final consumer.

Questions? Contact our Customer Support.



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