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.

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