On July 2, 2024, the Bolivian Tax Administration announced changes in the procedure for applying the Zero Rate regime of the Value Added Tax (VAT). This regime, designed to encourage the production and consumption of certain goods and services through a VAT exemption, has been adjusted to improve its efficiency and adapt to current economic conditions.
Context of the Zero Rate VAT Regime
The Zero Rate VAT regime is a fiscal policy designed to alleviate the tax burden on certain goods and services considered essential or strategic for the country’s economy. Under this regime, designated products and services benefit from a 0% tax rate, meaning that no VAT is charged to the final consumer, but suppliers can still recover the VAT paid on their inputs.
Purpose of the Modification
This legislative change aims to include within the regime the international road transport service activities of Bolivian cargo companies, including the transport of parcels, packages, documents, or correspondence.
According to this resolution, transport operators, regardless of their corporate designation, must manage the reassignment of international cargo transport activity directly with the Collection Area or the Large Taxpayers Unit. This tax amendment is one of several steps by the Bolivian Government to reach an agreement with the transport sector and end the pressure measures from transporters.
The modifications introduced by Regulatory Board Resolution No. 102400000015 seek to create a more favorable environment for taxpayers and promote economic growth in strategic sectors.
The simplification of procedures and the expansion of the list of benefited products and services could stimulate investment and consumption in key areas. Additionally, the new control standards aim to ensure that the benefits of the regime are applied equitably and efficiently.
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All information contained in this publication is up to date on 2024. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice.No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.