Tax rate by region Bolivia

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The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

Bolivia’s SaaS Sales Tax Landscape: A Comprehensive Overview

In Bolivia, businesses operating within the Software as a Service (SaaS) industry are subject to a 13% Value Added Tax (VAT) on their sales. This tax came into effect in 1986 as part of a broader initiative to modernize tax administration and bolster public revenue. As a business owner, understanding the intricacies of this tax is crucial for ensuring compliance and maintaining a healthy financial standing.

Currently, there are no reduced VAT rates or exemptions applicable to digital services like SaaS, meaning the full 13% rate applies to all transactions. This translates to meticulous record-keeping, as you’ll need to retain invoices, receipts, and other relevant documents for a minimum of five years. Furthermore, Bolivian law mandates e-invoicing, requiring businesses to issue electronic invoices for all sales. By adhering to these regulations and partnering with a reputable tax advisor, you can navigate the complexities of SaaS sales tax in Bolivia with confidence.

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Bolivia

Bolivia implemented a VAT system in 1986, focusing on enhancing public revenue and modernizing tax administration.

Official government link: Servicio de Impuestos Nacionales

13.00%

E-products and services VAT/Sales tax rate

0.00%

Reduced tax rate

Reduced tax rate product categories

No specific reduced tax rates for digital goods and services

Exempted product categories

No digital goods or services categories are exempt

Reverse charge mechanism for B2B sales

No

Tax ID validation required

Yes

When do you have to register

Before commencing any taxable activity in the country

Online registration possible

Yes

Local representative needed

Yes

Registration procedure

To register for VAT, complete the VAT registration application form, gather the required documents including business registration and proof of address, and submit the registration form and documents either online or in person at the tax authority. Finally, wait for confirmation of your VAT registration number.

List of digital and electronic services liable for tax

Downloadable software, streaming services, e-books, online courses, and other electronically supplied services.

Penalties

Penalties may apply for late registration, late filing, and other non-compliance with VAT obligations, including fines and interest.

Registration threshold

No threshold, non-resident companies must register for VAT

Filing interval

Monthly

Filing deadline

By the 15th of the month following the reporting period.

E-invoicing requirements

Yes

Record keeping

Businesses must retain records of all transactions (invoices, receipts, etc.) for a minimum of 5 years.

How-To Guides: Bolivia SaaS VAT

Step: 1 Threshold

Bolivia does not provide a specific VAT registration threshold for resident businesses; VAT registration is generally required when a taxpayer carries out taxable activities in Bolivia.
Also, Bolivia currently does not have a simplified VAT registration regime specifically for non-resident suppliers of digital services. Foreign providers of SaaS or other digital services cannot normally register for VAT unless they establish a local presence (e.g., branch, subsidiary, or authorized representative).

 

Therefore, VAT obligations generally arise only if the supplier operates through a registered entity in Bolivia.

Step: 2 Business Registration

Companies must be registered with the commercial registry (Registro de Comercio) and then enrol with the National Tax Service (Servicio de Impuestos Nacionales – SIN) to be a tax resident.

Step: 3 TIN/VAT Number

The tax ID issued is the NIT (Número de Identificación Tributaria) by the Servicio de Impuestos Nacionales; used for all VAT (IVA) compliance and filings in Bolivia

Step: 1 Standard VAT Rate

Standard VAT (“IVA”) rate is 13% on goods and services supplied within Bolivia.

Step: 2 VAT Formula

To calculate the tax amount, use the following formula: 

Tax Amount = NetPrice × 13%

Step: 3 Reverse Charge (B2B)

Bolivia does not have a general reverse charge mechanism for services supplied by non-residents; services consumed outside Bolivia generally fall outside Bolivian VAT, and non-resident suppliers are not subject to domestic reverse charge.

Step: 1 Selling B2C

If selling digital services SaaS/B2C to Bolivian consumers, VAT must be applied at 13% on the taxable price (charged to the consumer).

Step: 2 Selling B2B

For B2B sales where buyer is VAT-registered, VAT still applies; Bolivia does not apply a standard EU-style reverse charge mechanism; non-resident suppliers typically must register and collect VAT if making habitual supplies in Bolivia.

Step: 3 Invoice Requirements

VAT invoices must include:

  • Supplier name & address
  • Supplier NIT; Buyer name & NIT (if applicable);
  • Invoice date; Sequential unique invoice number
  • Description of services;
  • Net amount;
  • VAT rate & amount;
  • Total amount;
  • Currency & conversion to Bolivianos if issued in foreign currency;
  • QR code/billing codes where required under e-invoicing regime.

Step: 1 Filing Interval

Monthly VAT returns for IVA.

Step: 2 Filing Deadline

Returns and payments are due between the 13th and 22nd of the month following the reporting period (varies by final digit of tax ID).

Step: 3 Submission

Filed and paid via the SIN’s electronic portal (online filing system).

Step: 4 Record Keeping

Tax records, invoices and books must generally be kept for up to 8 years under Bolivian tax rules.

Electronic invoicing (Sistema de Facturación Electrónica – SFE) is mandatory for VAT-registered businesses. 

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Bolivia’s VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

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Our team of SaaS tax experts is here to help. Contact us today for a free consultation.

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