Compliance updates - Bolivia

This taxpayer group was previously supposed to start issuing tax documents in a structured electronic format from 1 February 2023, as per resolution Nº 102200000010.

With the new resolution Nº 102300000004, selected taxpayers shall start issuing electronic invoices as of 1 April 2023.

As previously reported by Pagero, taxpayers in group number 3 were supposed to start issuing electronic documents, including e-invoices, as of 1 December 2022 via available means listed in resolution Nº 102200000010.

However, with the new resolution Nº 102200000025, selected taxpayers shall start issuing electronic invoices as of 1 February 2023.

The selected group of taxpayers and corresponding modalities as stated in resolution N° 102200000024, will have to start issuing electronic tax documents – Sp. Documentos Fiscales Digitales, starting from 1 April 2023. This also means that these taxpayers will have to comply with the provision established in resolution N° 102100000011.

Pagero is monitoring closely all details and ongoing updates happening in Bolivia. Stay tuned with all ongoing worldwide updates by checking Pagero's Regulations World Map.

As mentioned before by Pagero, taxpayers selected in group number 3 were supposed to start issuing electronic tax documents – Sp. Documentos Fiscales Digitales as of 1 October 2022.

However, according to resolution N° 102200000020, they shall start issuing electronic tax documents as of 1 December 2022 via available means listed in resolution Nº 102200000010.

During the grace period, selected taxpayers can issue electronic tax documents through the above-proposed methods and/or computerized billing SFV (temporary billing method) or the manual system (pre-printed invoices, old system).

SIN will continue releasing information about the ongoing rolling mandate regarding e-invoicing, so stay tuned with Pagero for the latest updates.

As previously mentioned, Bolivia is in the process of implementing electronic invoicing among all taxpayers. Nevertheless, adhering to the e-invoicing regime is carried out in phases.

As per the new Resolution N 102200000010 published on 18 May 2022 by SIN (sp. Servicio de Impuestos Nacionales), selected taxpayers in group number 3 will have to adapt their billing systems to start issuing invoices and other tax-relevant documents electronically latest by October 2022.

Group 3 is comprised of 3897 entities in total. They are listed in the annex of the above resolution.

Bolivia currently uses a post-clearance CTC model, centered around the mandatory infrastructure SIAT, to comply with the Directory RND No. 102100000011 published on 12 August 2021 by SIN.

Since 1 December 2021, Bolivia has mandated electronic invoicing for the country’s largest taxpayers (GRACO) and main taxpayers (PRICO) with a total of 171 companies in the scope.

According to the tax administration, all taxpayers registered for value-added tax will be added to comply with the e-invoicing mandate over a period of three years. Only businesses covered by the simplified tax regime are exempt.

The companies that are required to comply with the e-invoicing regime can be found in Normative Resolution No. 102100000019 of 14 October 2021.

With the Directory RND No. 102100000011 aimed at regulating the electronic invoicing system, Bolivia is introducing post-clearance as the e-invoicing model within the country.

The Bolivian Tax Administration has already published a list of 171 large companies (GRACO) and main taxpayers (PRICO) that must comply with the new e-invoicing system by 1 December 2021.

Apart from the groups mentioned, the SIN will periodically assign other taxpayer groups to comply with the system, following the criteria listed by the new directory.

Unless selected by the Tax Administration, the rest of the taxpayers will not have to adhere to the new e-invoicing system, being able to keep issuing invoices the same way as previously.

The Bolivian Tax Authority has announced the repeal of its proposed electronic billing system. Released on 18 May 2020, Board Resolution No. 102000000011 temporarily annuls the rollout of mandatory e-invoicing in Bolivia. Further information regarding the reactivation of the project is unknown.

The National Tax Service established the regulatory framework for the implementation and regulation of the Electronic Invoicing System last year. However, due to the current situation of the economy, heightened by the health emergency of COVID-19, necessary decisions have been made.

Despite this temporary annulment, mandatory e-invoicing is an almost certain future not only for Bolivia but worldwide. See the details of the previously proposed mandate and stay tuned for information regarding its reactivation.

Legal framework for e-invoicing in Bolivia

Tax documents will likely be validated and registered in real time through Bolivia’s National Tax Service, Servicio de Impuestos Nacionales (SIN), with an e-invoicing system called Sistema De Facturacion Electronica (SFE).

Proposed benefits for the taxpayers

SIN will prepopulate and automatically generate VAT declaration and Purchase and Sales Registry for the taxpayer to review, modify and confirm data. The automation of the process will not only reduce tax fraud, but also all but eliminate human error from market operations.

Tax documents in scope of the mandate

• Invoices
• Debit and credit notes
• Equivalent documents

Interaction with SFE

The mandate allowed the following interaction options:

• Web portal for small businesses, which requires special login credentials from SFE;
• Online computerised invoicing: desktop software that allows the system to issue documents on a large scale, which requires special login credentials from SFE; and
• Online electronic invoicing: own or third-party software for invoice creation certified by SIN and which applies electronic signatures.

Design of the invoicing process

1. The issuer generates the fiscal document either manually or in the required format XML, version 1.0 UTF-8;
2. The document must be signed with the e-signature acquired from the certifying entity, the Agency for the Development of the Information Society (ADSIB);
3. The document is sent to SFE for validation and registration;
4. SFE sends a response to the taxpayer in real time;
5. Issue status for the invoice is immediately available for viewing on the SFE portal.

Figure 1: A simplified illustration of the previously proposed invoicing process

A single connection for global compliance

Although e-invoicing is not new to Latin America, each country faces its challenges as new mandates are enforced. Pagero is uniquely positioned in the industry as one of the few service providers with an in-house regulatory analysis team working on implementation and maintenance of e-invoicing and other related requirements. Beyond this, a partnership with Gosocket and cooperation with indirect tax and invoicing compliance experts such as Deloitte and Thomson Reuters means Pagero is prepared to help pave the way for Bolivian businesses of all sizes entering into the era of mandatory e-invoicing.