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Bolivia VAT Guide 2026

Bolivia's Value Added Tax (IVA) is levied at a standard rate of 13% on the supply of most goods and services. Exports are taxed at 0% (zero-rated), allowing exporters to recover input VAT. The tax operates on a credit method where registered businesses offset input VAT against output VAT. Registration is mandatory for businesses exceeding specified thresholds. The tax is administered by the Servicio de Impuestos Nacionales (SIN) under the Bolivian Tax Code.

Overview — IVA in Bolivia

The IVA (Impuesto al Valor Agregado) is governed by Law 843 and administered by SIN. It applies to the sale of goods, provision of services, and imports. The tax is charged at each stage of the production and distribution chain, with businesses entitled to credit for input VAT paid on their purchases. The end consumer bears the final tax burden. Businesses with annual turnover exceeding BOB 100,000 must register for IVA. The tax year follows the calendar year, and IVA returns are filed monthly. SIN has implemented an electronic invoicing system (Facturación Electrónica) for all registered businesses.

IVA Rate Structure

The IVA rate structure in Bolivia is simple with only two main rates:

  • Standard rate — 13% on most goods and services
  • Zero rate (0%) — exports of goods and services, international transport

Certain goods and services are exempt from IVA including basic foodstuffs (bread, milk, rice, sugar), unprocessed agricultural products, educational services (registered institutions), medical services, financial services (interest, insurance premiums), residential rent, and public transport. Exempt supplies do not carry input VAT recovery, meaning businesses making exempt supplies cannot reclaim VAT on their inputs.

Credit Method & Input VAT Recovery

Bolivia operates a standard credit method for IVA. Registered businesses calculate their IVA liability as: Output IVA (13% of taxable sales) minus Input IVA (13% of taxable purchases). If input IVA exceeds output IVA in a given month, the excess may be carried forward to future months or claimed as a refund (subject to SIN approval). To claim input VAT credits, businesses must hold valid electronic invoices (facturas electrónicas) issued by registered suppliers. Input VAT on certain expenses may be restricted, including entertainment, passenger vehicles (partial), and expenses related to exempt supplies. Capital goods purchased may generate a credit that can be amortised over several months.

Registration & Compliance

Businesses with annual turnover exceeding BOB 100,000 must register for IVA with SIN. Registration is done through SIN's online portal (www.impuestos.gob.bo) and requires a Tax Identification Number (NIT — Número de Identificación Tributaria). Once registered, businesses must:

  • Issue electronic invoices (facturas electrónicas) for all taxable supplies
  • File monthly IVA returns by the 15th of the following month
  • Pay any IVA due at the time of filing
  • Maintain accounting records for at least 5 years
  • Submit annual information returns

Late filing attracts penalties and interest. SIN conducts audits and may impose fines for non-compliance. The electronic invoicing system has improved compliance and reduced VAT evasion.

FAQs

Do I need to charge IVA if my turnover is below BOB 100,000?

No, registration is mandatory only if annual turnover meets or exceeds BOB 100,000. Businesses below the threshold may voluntarily register. Unregistered businesses must not charge IVA on their invoices and cannot recover input VAT.

Can I recover IVA on imports?

Yes, IVA paid on imports is recoverable as input VAT, provided the imported goods are used for taxable supplies. The IVA is paid at customs (Aduana Nacional) and the import document serves as the supporting invoice.

What is the penalty for not issuing electronic invoices?

Failure to issue electronic invoices or to use the SIN-approved invoicing system can result in fines ranging from BOB 1,000 to BOB 10,000, plus potential suspension of the NIT.

Disclaimer

This guide provides general information about Bolivian VAT for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Bolivian tax advisor or the Servicio de Impuestos Nacionales for advice specific to your situation. InvestmentKit does not provide tax advice.