Bolivia has joined the movement towards digital tax controls by introducing an obligatory electronic system for tax documents, with the first phase to be launched in 2019.
Latin America is a market leader when it comes to digital tax controls through electronic invoicing and reporting. Implementation of e-invoice controls have been on the rise in recent years in order to reduce large tax evasion rates and improve financial control in the region. With Brazil and Chile at the forefront, several surrounding governments have done the same. Following suit, Bolivia has been redefining and upgrading their existing frameworks to introduce the new system.
Bolivia’s National Tax Service, Servicio de Impuestos Nacionales (SIN), is in the process of implementing the electronic invoicing system called Sistema De Facturacion Electronica (SFE), as outlined in the Board Regulatory Resolution. Tax documents will be validated and registered in SIN’s database in real-time.
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.
The roll-out of the mandate has been broken up into phases according to five groups of taxpayers. The groups are differentiated based on criteria such as their main economic activity, type of taxpayer, amount of sales, and number of invoices. The following roll-out phases have been outlined:
- Group 1: November 1, 2019
- Group 2: February 1, 2020
- Group 3: May 1, 2020
- Group 4: August 1, 2020
- Group 5: November 1, 2020
Tax documents in scope of the mandate
- Debit and credit notes
- Equivalent documents
Interaction with SFE
The mandate allows the following interaction options:
- Web portal for small businesses, which requires special log-in credentials from SFE;
- Online computerized invoicing: desktop software that allows the system to issue documents on a large scale, which requires special log-in 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
- The issuer generates the fiscal document either manually or in the required format XML, version 1.0 UTF-8;
- The document must be signed with the e-signature acquired from the certifying entity, the Agency for the Development of the Information Society (ADSIB);
- The document is sent to SFE for validation and registration;
- SFE sends a response to the taxpayer in real time;
- Issue status for the invoice is immediately available for viewing on the SFE portal.
Figure 1: A simplified illustration of the invoicing process to be implemented by Bolivia
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 new 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.
Learn how Pagero helps companies handle local e-invoicing and other requirements globally.