What is VAT

At Hotmart, anyone who wants to buy or sell a digital product can do so from anywhere in the world. 

For that reason, it’s very common for some questions to arise, especially related to fees and taxes for both people who want to buy and sell physical and digital products, and that vary among countries.

VAT (value added tax) is a tax that is charged in all European Union countries and the name of which, interestingly, can change depending on the country.

How it works at Hotmart

At Hotmart, you can configure your product for taxes to be added or included in the price:

• Taxes added to the price (default): In this scenario, you have more control over your commission. Your customer would pay the product price + tax amount. For example, if your product costs $100 and the tax is 10%, your customer would pay $110 and your commission would be calculated based on $100;
• Taxes included in the price: in this scenario, you have more control over the final price of the product, since the price you define will be precisely what the customer will pay, but your commission will be lower than in the previous scenario. For example, if your product costs $100 and the tax is 10%, your customer would pay exactly $100 and your commission would be calculated based on $90.9.

Important:

• The configuration of how taxes will be calculated is only available in the product registration flow;
• This setting is valid for the product and all of its prices;
• This configuration is valid in all countries and for all types of taxes collected by Hotmart;
• In Mexico, it is not possible to include taxes in the price of the product.